Low market penetration of takaful among Malaysians: non-takaful customer's perspective
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The Malaysian Takaful industry has experienced encouraging growth sinceits commencement in 1985. Annual growth rate of the industry has beenestimated at 20%. Despitethis rapid rate of growth the rate of penetration isstill not impressive. This paper seeks to find the reasons for this relativelylow penetration rate of the Takaful industry among Malaysians from the perspective of Malaysians who do not participate in the Takaful industry.The method employed to achieve the objective of this paper was the surveymethod; Data analysed using Logistic Regression Model (LR).This research finds that marketing, is a robust predictor of Takaful demand, as 50% of the respondents have not been approached by any Takaful agents, while religion has a significant relationship with Takaful consumption as majorityof the respondents do not plan to have Takaful is not permissible being similar to conventional insurance (Haram). Also age was a significant factor among the young respondents not planning to participate in Takaful policies.
Customer , Takaful , Penetration , Malaysia
Mohamed, Omaima Eltahir Babikir and Alhabshi, Syed Othman. (2015). Low market penetration of takaful among Malaysians: non-takaful customer's perspective. International Journal of Ethics in Social Sciences, 3 (1), pp. 5-22.
Centre for Research on Islamic Management and Business (CRIMB)