Factors Influencing the Penetration Rate of Malaysian Takāful Industry from Takāful Managers' Perspective

Mohamed, Omaima Eltahir Babikir; Alhabshi, Syed Othman

doi:10.12816/0024362

Cited by 11 publications

(10 citation statements)

References 7 publications

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“…The relationship between Islamic banking deposits and takaful demand shows the inter-dependency between Islamic financial institutions (IFIs); thus, strong performance of Islamic banks will increase the confidence of customers of other IFIs, including takaful (Sherif and Shaairi, 2013). Mohamed and Alhabshi (2015) surveyed takaful managers in Malaysia and found that they believed innovation would improve takaful market penetration. A study conducted by Arifin and Yazid (2018) describes the factors that influence innovation attributed to loyalty in family takaful in Malaysia.…”

Section: Literature Reviewmentioning

confidence: 99%

Innovation in the takaful industry: a strategy to expand the takaful market in Indonesia

Nugraheni

Muhammad

2019

JIMA

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Purpose This study aims to identify and describe possible innovations available to the takaful industry in Indonesia by considering demographic characteristics and geographical conditions. Indonesia has a predominantly Muslim population, and thus, presents good potential for the takaful market. Design/methodology/approach This study uses a qualitative, descriptive, literature-based method to discuss innovation strategies in the takaful industry. This method is appropriate for reviewing particular conditions and phenomena by analysing information and data drawn from existing literature. Findings Market, product and process innovations are chosen as the strategies appropriate to expanding the takaful market in Indonesia. Strategies are described, which could be used to implement these innovations by influencing the community to participate in takaful, and thus, to expand the takaful market. Research limitations/implications The innovation strategies described are adapted to the demographic characteristics of Indonesia and so cannot necessarily be generalised to other countries with different environments. Practical implications By considering customer demographic and geographical conditions, the takaful industry should choose the types of innovation that will suit the community characteristics and environmental conditions of Indonesia. Originality/value The study specifically discusses innovation strategies in the takaful industry by describing the socio-economic conditions of Indonesian society. Takaful companies in Indonesia can use the results to determine the types of innovation they pursue based on the customer demographic and geographical conditions faced.

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Section: Literature Reviewmentioning

confidence: 99%

Innovation in the takaful industry: a strategy to expand the takaful market in Indonesia

Nugraheni

Muhammad

2019

JIMA

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“…Between 2005 and 2010, the Takaful penetration rate has increased by only a small percentage, from 5.7 percent in 2005 to 13 percent in 2012 (Mohd Irwan, 2013). In a study conducted by Mohamed, Syed Othman, and Kamaruddin (2013), it is found that the most influential factors that influenced the low rate of Takaful penetration are distribution channels (90 percent of the interviewees agreed), and marketing practices (85 percent of the interviewees agreed). Thus, this indicate that study on the distribution channels and its marketing practices has become crucial to influence the penetration rate of Takaful in Malaysia.…”

Section: Research Problemmentioning

confidence: 99%

The Significant Contribution of Islamic Relationship Marketing Practice in Malaysian Takaful Industry Towards Determining Customer Gratitude, Trust, and Commitment

Salleh¹

2016

AAMJ

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Parallel to the achievement of the Takaful industry, agency system becomes the main medium utilised by the industry to educate the public and assist them about future financial preparation. As a mirror to an Islamic type of insurance, Takaful agents play significant role not only to sell the Takaful products, but also to behave according to the Islamic norms in front of their customers. Thus, this research is conducted to introduce new concept of Islamic relationship marketing (IRM) and investigates its significance towards customer gratitude, trust, and commitment in the industry. A total of 741 of Family Takaful customers in Klang Valley area have participated in the survey conducted in this study. Few statistical analyses were performed to confirm the proposed measures of IRM including descriptive, exploratory factor analysis (EFA), measurement model, and structural equation modelling (SEM) analysis. Through EFA and measurement model, four variables were confirmed to measure the IRM which are Islamic ethical behaviour, social, structural, and financial bonds. Furthermore, these measures of IRM have significantly affected customer gratitude, trust, and commitment via SEM analysis. This study serves as a starting point to promote new approach of marketing in the Takaful industry based on the Islamic norms. It basically aims to tackle the needs of Takaful participants which should be taken care by the Takaful agents as to ensure both of these parties receive benefits in the Takaful contract.

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“…It is reported that takaful industry still has about 10% of marketing products which are shariah compliant but yet to be put into effective operation (The World Takaful Report, 2012). Some other studies revealed that the attention given to takaful products by the Muslims and the non-Muslims alike are still deemed to be very low (Hamid & Othman, 2009;Mohamed, Alhabsh, & Sharif, 2013). A study carried out by Hamid & Othman (2009) showed that Muslim consumers do not have adequate understanding and information about the concept and essence of takaful, and this had relatively impede the progression of takaful industry and its growth, especially in Malaysia.…”

Section: Challenges and Future Directionmentioning

confidence: 99%

Takaful (Islamic Insurance) Industry in Malaysia and the Arab Gulf States: Challenges and Future Direction

Hussin¹,

Muhamad²,

Hussin³

2014

ASS

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The Arab Gulf States in the Middle East and some other countries in South East Asia particularly Malaysia have been the epicenters for the development of Islamic banking and finance, as the last couple of years have not only witnessed tremendous development in the Industry but also much attention had been given to it by experts and professionals to brainstorm on its future direction, whereas less attention had been given to the discussion on the Islamic insurance; otherwise known as takaful despite its overwhelming growth. This paper, in a comparative context, examines the growth and development of the takaful industry in Malaysia and the Arab Gulf States by offering an insight into the challenges, prospects and future direction of the industry between these two fertile markets. It also examines the contributing factors to the growth and development of the industry in both markets through the use of historical reports, corporate documentations and professional analyses to arrive at a conclusion that the future of the industry in those two regions is not only germane but lucrative as well.

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Factors Influencing the Penetration Rate of Malaysian Takāful Industry from Takāful Managers' Perspective

Cited by 11 publications

References 7 publications

Innovation in the takaful industry: a strategy to expand the takaful market in Indonesia

Innovation in the takaful industry: a strategy to expand the takaful market in Indonesia

The Significant Contribution of Islamic Relationship Marketing Practice in Malaysian Takaful Industry Towards Determining Customer Gratitude, Trust, and Commitment

Takaful (Islamic Insurance) Industry in Malaysia and the Arab Gulf States: Challenges and Future Direction

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