Involvement of micro, small and medium entrepreneurs (MSMEs) in takaful in Sri Lanka: an extension of theory of planned behaviour

Rifas, Abi Huraira; Rahman, Asmak Ab; Buang, Ahmad Hidayat; Talib, Muzalwana Abdul

doi:10.1108/jima-11-2021-0371

Cited by 2 publications

(1 citation statement)

References 73 publications

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“…Hence, this study focuses on the management soundness of general and family takaful preferences. Focusing on prominent types of general and family takaful preferences (Rifas et al , 2023) would contribute meaningfully to the takaful literature. Even a recent study by El Attar and El Hachloufi (2022) focused on the death guarantee takaful .…”

Section: Introductionmentioning

confidence: 99%

Evaluation of management soundness of Takaful industry in selected countries

Salami,

Tanrivermis,

Tanrivermis

2024

JIMA

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Purpose Management soundness is essential for the effectiveness of any industry, most especially in any Islamic financial sector, whereby fairness and justice are the key factors to be observed. This paper aims to examine the management soundness of the takaful industry regarding their asset quality, re-takaful and actuarial and earning and profitability. Design/methodology/approach This study obtained quarterly data from 2019Q1 to 2021Q4 from the Islamic Financial Services Board across Malaysia, Brunei, Saudi Arabia, Jordan and the United Arab Emirates. The panel data modelling with random-effect and fixed-effect estimators were used for the analysis. Findings The finding revealed a strong relationship between re-takaful and earnings with management soundness and a weak relationship between asset quality and management soundness. In addition, the result established a significant and strong association between management soundness and earnings and profitability. Therefore, re-takaful and profitability contributed more to the management soundness of the takaful industry than asset quality during the study. An increase in earnings and profitability to enable the takaful industry to pay the claims, especially in calamity, and more focus on the quality of the asset they invested in could enable the smooth running of their day-to-day business affairs. Practical implications More attention is required on the quality of assets in their portfolio for the sustainability of the takaful industry to fulfil their underlying objectives. Management soundness in the takaful industry should address the challenges of managerial lathery, which some studies linked with operational inefficiency because of unskilled personnel in the takaful industry. This could benefit takaful clients, irrespective of religion, to attain their associated share of benefits from the Islamic insurance industry. Originality/value To the best of the authors’ knowledge, this is the first empirical study that examined the effectiveness of takaful management across Malaysia, Brunei, Saudi Arabia, Jordan, and the United Arab Emirates.

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Section: Introductionmentioning

confidence: 99%

Evaluation of management soundness of Takaful industry in selected countries

Salami,

Tanrivermis,

Tanrivermis

2024

JIMA

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Determinant of Family Takaful Adoption Among Puncak Alam Residents

Mohd Rasid,

Ruslan

2024

IMBR

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This study investigates the key determinants influencing the adoption of family takaful among residents of Puncak Alam, Selangor. Despite the strategic design of family takaful to provide financial protection, particularly for low-income earners in the event of financial loss, its market penetration in Malaysia remains low. This raises important questions about the barriers to its widespread adoption, despite extensive promotional efforts by the takaful industry. The research aims to address these challenges by identifying and analyzing the factors that hinder the broader uptake of family takaful. A quantitative and descriptive research approach was adopted to gain a deeper understanding of the issue. Data collection was conducted using random sampling techniques, and the responses were analyzed using descriptive statistics with the help of the Statistical Package for Social Sciences (SPSS) software. The study involved a structured survey of 100 respondents from Puncak Alam, which examined the impact of three key variables - price, knowledge, and satisfaction - on the adoption of family takaful. The findings of this study underscore the significance of these three factors in shaping consumers' decision-making processes regarding family takaful. Price, as an indicator of affordability, knowledge about family takaful products, and the level of satisfaction with existing services, were all found to significantly influence adoption rates. By highlighting these critical determinants, the research provides valuable insights for policymakers, takaful operators, and financial service providers to refine their strategies and promote wider adoption of family takaful, ultimately enhancing financial security for the Malaysian population.

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Involvement of micro, small and medium entrepreneurs (MSMEs) in takaful in Sri Lanka: an extension of theory of planned behaviour

Cited by 2 publications

References 73 publications

Evaluation of management soundness of Takaful industry in selected countries

Evaluation of management soundness of Takaful industry in selected countries

Determinant of Family Takaful Adoption Among Puncak Alam Residents

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