Acceptance level of takaful insurance products among non-Muslims in Malaysia

School of Mathematics, Actuarial and Quantitative Studies (SOMAQS), Asia Pacific University of Technology and Innovation (APU), Technology Park Malaysia, 57000 Kuala Lumpur, Malaysia

^* Corresponding author: TP054646@mail.apu.edu.my

Abstract

Non-Muslims in Malaysia have a lower participation rate in takaful insurance. The purpose of this paper is to examine the factors that influence acceptance level of takaful insurance products among non-Muslims in Malaysia. In this paper, independent variables: awareness, attitude, service quality and relative advantage were examined using the Multiple Linear Regression (MLR) model to analyze the effect of dependent variable: non-Muslim acceptance level. The methodology used was a purely quantitative survey using convenience sampling with data collected from a sample of non-Muslims participants in Malaysia. The findings revealed that attitudes and relative advantage are found to be the significant factors that influence the acceptance level on takaful insurance products while awareness and service quality do not account for acceptability on takaful. It was also discovered that attitude is the most significant factor towards acceptance level on takaful insurance products among non-Muslims in Malaysia. The paper provides insight for understanding the factors that lead to consumers’ purchase intention of takaful insurance products in Malaysia. Furthermore, this study gives valuable ideas for takaful insurance companies to develop appropriate takaful insurance and build marketing strategies to enhance takaful insurance participation in Malaysia.