Family Takaful is one of the service sectors that are expected to continue to drive growth in the economy. Thus,
the family Takaful market continues to play an important role in supporting economic and social development.
However, in Malaysia, family Takaful market is still at a lower penetration level if we were to compare to other
developed countries even though the Takaful industry continues to sustain strong performance amidst challenges
in a competitive environment. Evidence has shown that the percentage of society covered by family Takaful
contracts in Malaysia is still very low compared to conventional insurance. Therefore, the study aims to propose
a conceptual framework for the determinants of family Takaful demand in Malaysia. From a review of the
literature available in this particular area of interest, there are two categories of factors that are found to be the
main determinants of family Takaful. These factors are the socio-demography and economic factors.
The growing significance of takaful industry (Islamic insurance) in Malaysia is expected to foster sustainable economic growth in Malaysia. Further to this, Malaysia is recorded to be the major player and one of the fastest takaful growth in Southeast Asia. As such, family takaful (Islamic life insurance) segment must be competitive and innovative to increase market penetration and compete with their conventional counterparts. This paper aims to propose a simple yet comprehensive conceptual model by identifying the main determinants that drive family takaful demand in Malaysia. An extensive review of literature available has been carried out to achieve the purpose. Several critical factors namely, agency system (al-wakalah), reputation of takaful operators, products and services, marketing and advertising of takaful products, are found to be the main determinants for family takaful demand.
Bank Negara Malaysia reports revealed that the Takaful market performance was shown to have contributed significantly to the family Takaful business compared to the general Takaful business, which remained the primary income generator in Malaysia for the Takaful industry. Yet, family Takaful's market penetration rate is still relatively low and does not reach the potential market. It also confirmed that the range of family Takaful participants surrendered their certificates every year. This can be argued that the Takaful industry faces a challenge in maintaining its current family Takaful participants. It is critical for the Takaful industry to focus on participants’ retention by know-how loyalty tendencies. This research aims at providing more information and knowledge on how to manage their loyalty based on its antecedents. Hence the main purpose of this research is to examine the effect of trust, commitment, and satisfaction on participants’ loyalty in family Takaful. This research also aims to examine the mediating role of satisfaction which can help extend the current understanding of loyalty. Quantitative research was put in place to achieve the research objectives. Stratified random sampling and simple random sampling were selected in which the questionnaires were distributed to 400 samples of family Takaful participants in the East Coast of Peninsular Malaysia. The data collected were processed via appropriate computer software such as the Statistical Package for Social Sciences version 22 (SPSS 22.0) and the AMOS program version 22 (AMOS 22.0). These findings contributed to the existing literature as a guide to better understand consumer behavior cycles, particularly in the context of Takaful industry.
Just a little part of SMEs are fruitful in accomplishing remarkable execution and maintainable development, The writing shows that there is as yet a hole for powerful approaches to expand the size of that division. This paper expects to contribute in filling the hole by distinguishing factors influencing SME execution and, subsequently, their turn of events; and to build up a reasonable system clarifying their connections. The writing uncovers that despite the fact that there is positive connection between government support, training, digital marketing, financial capital and SMEs performance, the relationship is as yet uncertain; proposing that there are mediating develops between the five builds. Field perceptions and writing surveys propose a second-request develops serving directing parts between government support, training, digital marketing, financial capital and SMEs performance that may explain the relationship, i.e., risk control. Albeit the connections among the six builds have been broadly concentrated in the surviving writing, this paper is one of only a handful few endeavors, assuming any, in researching the six develops in an extensive structure as a reason for additional examinations. On the off chance that exactly upheld, the proposed system may give a powerful option in helping business people and SMEs players to build up their venture all the more viably.
Structural Equation Modelling (SEM) is always recognized as the method of choice across research fields when involving multiple construct, observed variables and relationships. However, there are a very few studies had investigated the SEM efficiency on producing the construct correlation. Thus, the Monte Carlo simulation was conducted on two different methods (CBSEM and Consistent PLS) using different sample size and model. The findings revealed that the CBSEM is performed consistently than Consistent PLS when the model being tested is in factor. The recommendations also provided to guide the SEM users.
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