Do Muslims intend to participate in Islamic insurance? Analysis from theory of planned behaviour

Abstract

Purpose

The purpose of this paper is to apply theory of planned behaviour (TPB) in predicting consumer intention to participate in takaful. One area of concern for takaful operators is the untapped Islamic insurance (takaful) market and lower market share compared to conventional insurance counterparts. It is possible that the application of the TPB could shed some light on the problem and possibly offer some assistance to the takaful operators.

Design/methodology/approach

Interrelationships among attitudes, subjective norm, perceived behavioural control and purchase intentions in regard to takaful products participation were examined within a framework of the theory of planned behaviour. A model and series of propositions are developed. The propositions are open to empirical verification and can form the basis for a research stream on takaful participation.

Findings

In identifying factors influencing takaful participation, TPB is used and the model incorporates certain individual factors that are likely to influence intentions towards takaful participation. The model proposes that individual factors such as awareness, knowledge and exposure have impacts on takaful participation.

Originality/value

This study provides insights for a previously unaddressed takaful participation among potential consumers. Prior work on determining participation of takaful has not applied TPB in an effort to understand the phenomenon.

Citation

Md Husin, M. and Ab Rahman, A. (2016), "Do Muslims intend to participate in Islamic insurance? Analysis from theory of planned behaviour", Journal of Islamic Accounting and Business Research, Vol. 7 No. 1, pp. 42-58. https://doi.org/10.1108/JIABR-03-2014-0012