IDEAS home Printed from https://ideas.repec.org/a/src/jbsree/v6y2020i4p1505-1516.html

Determinants of Customer Perception about adoption of Islamic Insurance (Takaful) in Pakistan

Author

Listed:
  • Areeba Khan
  • Hafiz Abdur Rashid
  • Rana Muhammad Shahid Yaqub
  • Saba Abbas

Abstract

The purpose of this study is to assess the response level of individuals concerning Islamic Insurance in Pakistan and to measure its outreach and most pertinent factors affecting customer selection of Islamic Insurance. It also seeks to make informed recommendations on empowering frameworks for the establishment of Takaful insurance through relevant marketing campaigns in Pakistan. The impact of factors like Customer Awareness, Consumer Satisfaction, Risk Perception, Compatibility and Religiosity was checked on Adoption of Islamic Insurance in Pakistan, with the presence of Social Influence as a mediating variable. Data were collected through questionnaire administered to 300 respondents, representing the Muslim community from urban as well as rural areas, of Pakistan. Partial least square-structural equation modeling (PLS-SEM) through Smart PLS3 was used to examine the relationships among pertinent factors in this study. The findings suggest that most respondents are either not aware of Takaful as an insurance and investment option, or do not understand the concept altogether. This study suggests that Islamic insurance organizations should focus on awareness campaigns as an essential marketing strategy and dedicated resources to reach prime customer segments in general and fulfil the need to inform people about their products and services through clear understanding of principles of Shariah compliance. The findings of this research have important implications for Takaful companies as well as regulators and general insurance customers.

Suggested Citation

  • Areeba Khan & Hafiz Abdur Rashid & Rana Muhammad Shahid Yaqub & Saba Abbas, 2020. "Determinants of Customer Perception about adoption of Islamic Insurance (Takaful) in Pakistan," Journal of Business and Social Review in Emerging Economies, CSRC Publishing, Center for Sustainability Research and Consultancy Pakistan, vol. 6(4), pages 1505-1516, December.
    • Handle: RePEc:src:jbsree:v:6:y:2020:i:4:p:1505-1516
    DOI: http://doi.org/10.26710/jbsee.v6i4.1485
    as

    Download full text from publisher

    File URL: https://publishing.globalcsrc.org/ojs/index.php/jbsee/article/view/1485/1045
    Download Restriction: no
    File URL: https://libkey.io/http://doi.org/10.26710/jbsee.v6i4.1485?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Joeaiza Juhari & Najihah Abdul Rahim & Norhaidah Ahmad & Siti Nurul Aini Mohd Rodzi & Nasiha Kamaruzaman, 2026. "Factors Influencing the Purchase Intention of Medical Takaful among Generation Z in Malaysia: A Theory of Planned Behaviour Perspective," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 10(6), pages 17793-17802, June.
    2. Luhui Hua & Zeeshan Rasool & Muhammad Akbar Ali Ansari & Ali Junaid Khan & Nadia Hanif & Waseem Ul Hameed, 2023. "International Students’ Nostalgic Behaviour towards the Purchase of Products and Services," Sustainability, MDPI, vol. 15(4), pages 1-18, February.
    3. Nur Amalina Shafie & Khairul Anuar Ahmad & Noor Aimi Mohamad Puad & Ahmad Yani Ismail & Aza Shahnaz Azman & Fadilah Mat Nor & Rubayah Yakob & Nurul Hidayah Md Razali, 2026. "Main Factors that Influence Takaful Awareness and Knowledge among Mosque Committee Members in Malaysia," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 10(6), pages 4425-4431, June.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:src:jbsree:v:6:y:2020:i:4:p:1505-1516. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Prof. Dr. Ghulam Shabir (email available below). General contact details of provider: https://edirc.repec.org/data/csrcmpk.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.