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The purpose of this paper is to attempt to see the effectiveness of operational and transformational standards raised by joint working group of Islamic Financial Services Board (IFSB) and International Association of Insurance Supervisors (IAIS) as well as respondents' perceptions about Takāful (Islamic insurance) practices in Pakistan.

A total of two questionnaires were designed for this purpose: one for Takāful operators in Pakistan and other for insurance customers. For the first questionnaire, three Takāful operators were visited at Karachi. For the second questionnaire, a sample of 150 insurance customers was surveyed at Rawalpindi. Descriptive statistics and Chi‐square test was used to analyze the data.

Reporting standards and internal controls were found to have low level of observance among Takāful operators in Pakistan. The survey of insurance customers revealed that majority of the respondents (91 percent) are unaware of Takāful concept. Education was found to be the single important factor affecting income of the respondents, their perceptions and level of Takāful awareness.

The survey is conducted at one major city of the country based on convenient sampling technique and its results have been generalized for the entire country. However, actual results might differ when a sufficiently large sample is taken from all the main cities of the country.

The study would help the policy makers to focus on strengthening regulatory framework for Takāful. It will also help Takāful operators in understanding public perceptions about Takāful and devising strategies to promote Takāful business to the vast population of Pakistan.

This is the first empirical research conducted on Takāful in Pakistan that analyzes the Takāful practices both from managerial perspective as well as from regulatory perspective.

This paper aims to identify Islamic influence on customer satisfaction in Pakistan Takaful and conventional insurance industry. Specifically, it analyses the vital role of Shari’ah perception in achieving higher customer satisfaction.

The data from 400 customers of both the family Takāful and life insurance (200 each) were collected. Further, the regression-based bootstrapping approach was applied through process macro developed by Hayes (2013).

The results indicate that a higher Shari’ah perception positively affects the customer satisfaction in the Takaful industry with improved service and relationship quality; whereas, it negatively affects customer satisfaction in case of the conventional insurance. Further, it has been found that customer satisfaction partially mediates the customer switching intentions in both the Takaful and conventional insurance industry in the presence of service quality and relationship quality.

This research will enable the practitioners to understand the factors that affect customer satisfaction in Pakistan. It has the essential policy and managerial implications for the growth of the Takaful and conventional insurance industry.

This is one of the pioneer studies investigating the impact of Islamic influence (specifically Shari’ah perception) on customer satisfaction in both the Takaful and conventional insurance industry in Pakistan.

The purpose of this paper is to investigate the awareness of non-Muslims coming from a non-Muslim-majority country regarding Islamic financial services, in particular, the takaful products.

This paper uses structured questionnaires to acquire and understand South Korean citizens’ perceptions of Islamic financial services (primarily takaful) to reinforce the scant previous literature in this area of research. The questionnaires are developed and adapted based on a previous study by Htay and Salman (2013). The sample consisted of 121 Korean people who were living in Ampang, a popular suburb for South Koreans in Kuala Lumpur.

The findings indicate that even South Korean citizens who have dwelled in Malaysia for a significant amount of time had little awareness of Islamic financial services. Upon personal explanation about the product, however, they showed a significant interest to get to know about takaful and a willingness to subscribe to it in the near future.

Respondents are limited to only South Koreans who are residing in Malaysia.

Understanding the level of awareness about Islamic financial services among non-Muslims residing in Muslim-majority country.

There is ample scope to penetrate the non-Muslim market for Islamic financial products.

There is a growing concern over the lack of research in the area of perceptions of Islamic financial services among non-Muslims from non-Muslim-majority countries. The lack of study in this area of research has often been overshadowed by research studies on perceptions of Islamic financial services among non-Muslim residents in Muslim-majority countries, which may have led to a dearth of proper strategies in the Islamic financial industry to penetrate non-Muslim-majority markets.

The purpose of this paper is to determine current and potential takaful customers’ perception of takaful product and its adoption in Somalia.

This study used three originally selected constructs of perceived relative advantage, perceived compatibility and perceived complexity of diffusion of innovation (DOI) theory and adds three additional constructs of level of customer awareness, culture and perceived trust. A total of 427 questionnaires were collected from the participants of the study using a nonprobability convenience sampling technique. For data analysis, Smart PLS3 and SPSS software were used. The survey was conducted in Somalia, with respondents being current and potential takaful product’s customers. The DOI theoretical model was put to the test using structural equation modeling.

The findings showed that perceived relative advantage, perceived compatibility, awareness, perceived culture and perceived trust have a positive and significant influence, whereas perceived complexity has an insignificant influence on the adoption of takaful products.

This research is a pioneering attempt to investigate the determinants of current and potential takaful customers’ adoption by changing the DOI theory, and it presents a unique contribution to the field with regard to Somalia.

The purpose of this paper is to explore the extent by which consumer acceptance of an Islamic insurance product (Takaful) in a non-Muslim majority country would be affected by consumer knowledge about its Islamic origins. Furthermore, this study identifies the degree to which various psychological traits and demographics of the consumers influence purchase intentions.

A questionnaire was distributed to a national sample of 390 respondents, half of whom were told that this insurance product is Islamic and the other half were not. The questionnaire was identical between the two groups and the only difference was the disclosure of the product’s Islamic origins. Additional measures related to consumer demographics, cognitive style and prior experience with insurance products were obtained from the respondents. Regression analysis was used to determine the drivers of consumers’ purchase intentions.

Purchase intentions for Takaful were found to be lower when the product was presented to subjects as Islamic. In addition, it was established that a consumer’s cognitive style, political orientation, yearly insurance expenditure and views of Islam influence purchase intentions for Takaful.

This paper is the first to explore the degree of acceptance of an Islamic insurance product in a non-Muslim majority country (USA) and to investigate the effects of a product’s religion of origin on the purchase intentions of American consumers.

This study aims to determine the impact of basic human values on consumer purchase intention of takaful. The core purpose of this study is to establish the moderation of similarity of competitors between the proposed relationship of tradition value, conformity value and consumer purchase intention of takaful.

This study supports the positivist philosophical paradigm and follows quantitative research methods, cross-sectional approach and close-ended questionnaire technique for data collection. The IBM SPSS and AMOS programs were used to perform data analysis.

The finding reveals that tradition value produces positive effect and stimulation value produces negative effect on consumer purchase intention of takaful. Meanwhile, the similarity of competitors moderates the proposed relationship of tradition value, conformity value and consumer purchase intention of takaful.

The scope of this study is limited to measure the role of tradition value, conformity value, stimulation value and self-direction value. However, future studies should investigate the role of hedonism value, achievement value and universalism value in consumer purchase intention of takaful. Further, the data collection from three major cities of Pakistan is considered as a main limitation of this study including scarcity of time and resources. Future studies should enhance the geographical scope of research by including large and small cities, town and rural areas to enhance the generalization of the study.

The present study highlights leading challenges faced by takaful industry including the perception of similarity of competitors that create confusion in the mind of consumers. This study also introduces the role of basic human values in activating consumer’s intention to purchase takaful services.

The study aims to summarize the 20 years of literature published in takaful between 2000 and 2019 and propose some key areas as the directions for future research.

The present study utilizes the systematic method of reviewing the literature. The SCOPUS database has been accessed, and 96 articles have been accounted for the analysis. The articles are grouped in their exclusive themes, such as consumer behavior, financial and nonfinancial performance, takaful models, human resources and governance.

Takaful research has widely covered marketing, finance, human resource, governance and stresses on its legal issues. Both qualitative and quantitative methodologies have been employed. The research gaps have been classified based on the respective areas. Large share of current body of takaful literature consists of the studies related to the application of behavioural theories to examine the behavioural intention to take up takaful services.

The study enriches the literature of takaful by reviewing articles according to their respective themes, thereby contributing to the significant findings missing from existing literature surveys.

Nigeria is a country with very low health insurance coverage, with only 3 per cent of its population in the public and private sector covered by conventional health insurance. This made it possible for the exploration of alternative methods of insurance in Muslim dominated northwestern Nigeria. Thus, this paper aims to extend the theory of planned behavior to understand the role of awareness in the acceptance of Islamic health insurance (takaful) among microenterprises in northwestern Nigeria.

The methodology used was a purely quantitative survey with data collected from seven states that form the northwestern Nigeria.

The findings revealed that attitude, social influence and perceived behavioral control have a significant direct influence on takaful acceptance intention among microenterprises in northwestern Nigeria, while awareness does not. It was also discovered that awareness of takaful moderates the influences of social influence and perceived behavioral control on takaful acceptance intention, but it failed to moderate the influence of attitude on takaful acceptance intention in the same context.

The implication is that despite the acceptance intention more awareness is required to enlarge the takaful market in the region. The study contributes to the theories of reasoned action and planned behavior through the integration of awareness as a moderator.

The work is pioneering, extent literature in the area of takaful failed in investigating the role of awareness as a moderating variables in Nigeria where much awareness of the concept is desirable.

The purpose of the study is to examine the willingness (or otherwise) of the Tunisian customers to adopt Islamic insurance services (takaful) and to determine the factors that influence their decisions.

Hundred questionnaires are randomly distributed to Tunisian customers, and the data are subsequently analysed using SEM as well as one sample t-test.

Overall, the results indicate that the Tunisian customers are willing to adopt Islamic insurance services. Furthermore, compatibility of these services is a determinant factor of their decision.

This is one of the few studies of customers' behaviour towards Islamic insurance services, and the first to be conducted in the context of Tunisia. Furthermore, the study extends theory of innovations diffusions to a different area of study and a different context, i.e. Islamic insurance and Tunisia, respectively.

This paper aims to examine the level and the relationship between the perception of the performance of takaful operators and the customers’ intention in using medical takaful card among public sectors in Kedah, Malaysia.

A quantitative research methodology was advocated to answer the objectives progressively. Data were collected from questionnaires and analyzed using SPSS v22. In total, 313 respondents were selected from three public sectors in Kedah, Malaysia.

The review found that the level of customers’ perception of performance towards the customers’ intention in using medical takaful card was high. Besides, the findings concluded that a positive moderate relationship was observed between the perception of the performance of takaful operators and the customers’ intention in using medical takaful card among public officers in Kedah, Malaysia.

There were three major limitations of this paper. These limitations are further explained in the conclusion.

This study has provided some major implications. First, on behalf of the public sector institutions, the results of this study clearly showed that the intention of the public sector officers in using medical takaful card should be increased. Second, on behalf of the industry, this study could acknowledge them to improve their performance to increase efficiency, creativity and innovation to create a good impression among consumers. Third, the previous theory and literature related to the perception of performance is suitable to use even in the event that the takaful industry has been proven.

The paper is useful to takaful operators to provide a good perception of their performance in the process of influencing the customers, especially among the public sector officers, to enrol in the medical takaful coverage.