Factors influencing the penetration rate of Malaysian takaful industry from takaful managers’ perspective
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This paper sought to find the factors influencing Takaful market penetration based on the experience of managers of Takaful operators. Twenty (20) Takaful managers were randomly selected and interviewed. The method of analysis employed is The Thematic Analysis. The interviewees pointed out the factors that deter the public from participating in Takaful could be listed as follows: the lack of public awareness in the advantages of Takaful over insurance products, the limited range of product varieties, the shortage of relevant expertise to explain Takaful products, the need to improve the distribution channels and marketing strategies. The paper also suggested several ways of improving Takaful market penetration, namely: the need to develop tailor-made products to suit customer needs according to the different segments of society, expanding the range of product varieties, extensive training of staff and agents in order to enhance their products and services, technical and Shariah knowledge as well as to intensify promotion for higher level of awareness. The paper is a rare attempted to investigate the factors influencing Takaful market penetration in Malaysia context.
Penetration rate , Malaysian , Takaful industry , Managers
Mohamed, Omaima Eltahir Babikir and Alhabshi, Syed Othman and Sharif, Kamaruddin. (2013, December 3-4). Factors influencing the penetration rate of Malaysian takaful industry from takaful managers’ perspective. Paper presented at 4th International Conference on Business and Economic Research (ICBER) 2013, at Golden Flower Hotel, Bandung, Indonesia.
Hamdan Bin Mohammed Smart University