#Summary_ №10
Perception and Adoption of Islamic Insurance in Malaysia: An Empirical Study
This research examines the achievements of the Takaful industry by assessing customer satisfaction and perception of Takaful services in Malaysia. The study is based on Rogers’ Diffusion of Innovations Model, focusing on five key variables: uncertainty, awareness, compatibility, social influence, and relative advantage. Among these, the primary focus is awareness and compatibility, leading to the hypotheses that customer awareness positively impacts the adoption of Islamic insurance in Malaysia, and compatibility has a positive impact on the adoption of Islamic Insurance in Malaysia.
For data collection, questionnaires were randomly distributed to individual customers across both major and smaller cities in Malaysia. A total of 200 surveys were distributed, with 168 valid responses, resulting in an 84% response rate. The data was analyzed using Structural Equation Modeling (SEM) and t-tests.
The findings indicate that most respondents have sufficient awareness of Takaful services and a high willingness to shift to Islamic insurance. Additionally, customers perceive Takaful as compatible with their religious and financial values as well as their lifestyles.
Interestingly, after thorough analysis, only awareness and compatibility were found to significantly influence Takaful adoption in Malaysia. The other three variables—social influence, relative advantage, and uncertainty—had no significant impact on customer decisions. These findings align with previous research, reinforcing the idea that Malaysian customers are willing to adopt Takaful.
Alhamdulillah🍀
Perception and Adoption of Islamic Insurance in Malaysia: An Empirical Study
(Lukman Olorogun Ayinde and Abdelghani Echchabi)
This research examines the achievements of the Takaful industry by assessing customer satisfaction and perception of Takaful services in Malaysia. The study is based on Rogers’ Diffusion of Innovations Model, focusing on five key variables: uncertainty, awareness, compatibility, social influence, and relative advantage. Among these, the primary focus is awareness and compatibility, leading to the hypotheses that customer awareness positively impacts the adoption of Islamic insurance in Malaysia, and compatibility has a positive impact on the adoption of Islamic Insurance in Malaysia.
For data collection, questionnaires were randomly distributed to individual customers across both major and smaller cities in Malaysia. A total of 200 surveys were distributed, with 168 valid responses, resulting in an 84% response rate. The data was analyzed using Structural Equation Modeling (SEM) and t-tests.
The findings indicate that most respondents have sufficient awareness of Takaful services and a high willingness to shift to Islamic insurance. Additionally, customers perceive Takaful as compatible with their religious and financial values as well as their lifestyles.
Interestingly, after thorough analysis, only awareness and compatibility were found to significantly influence Takaful adoption in Malaysia. The other three variables—social influence, relative advantage, and uncertainty—had no significant impact on customer decisions. These findings align with previous research, reinforcing the idea that Malaysian customers are willing to adopt Takaful.
Alhamdulillah🍀