Spectrum Of Consumer Awareness In Islamic Finance: Takaful Industry In Malaysia


Total Views: 191

Authors

  • Nur I'ffah Muhammad Nasir Faculty of Economics and Muamalat, Universiti Sains Islam Malaysia, 71800 Nilai, Negeri Sembilan, Malaysia. https://orcid.org/0009-0002-8106-8797
  • Prof Datin Dr Rusni Hassan Institute of Islamic Banking and Finance, International Islamic University Malaysia, 53100 Kuala Lumpur, Malaysia.
  • Ahmad Zamri Osman Department of Accounting, Kulliyyah of Economics and Management Sciences, International Islamic University Malaysia, 53100 Kuala Lumpur, Malaysia.

DOI:

https://doi.org/10.33102/jmifr.513

Keywords:

Consumer, awareness, takaful, Islamic finance

Abstract

This paper attempts to provide an overview of the consumer awareness of takaful by introducing categories that exist in the spectrum of consumer awareness. This is important to ensure the efforts taken in promoting consumer awareness of takaful are delivered in a comprehensive and effective manner. It also addresses the role of takaful operators related to promoting consumer awareness of takaful. The study adopts qualitative-based research. Primary data is gathered using semi-structured interviews and content analysis is undertaken to identify and interpret the data obtained from the interviews in developing the categories of consumer awareness. It has been discovered that the spectrum of consumer awareness of takaful can be categorized into four different categories which are awareness in terms of (1) importance of takaful coverage, (2) takaful product features, (3) takaful as a Shariah- compliant alternative to conventional insurance and (4) consumer’s rights and responsibilities to the takaful contract. The study also finds that the takaful operators in the industry need to collaborate and work as a whole in the effort to promote consumer awareness of takaful. This study appears as a primordial attempt to discuss and identify the categories that exist in the spectrum of consumer awareness with reference to the takaful industry in Malaysia; while other studies related to consumer awareness of takaful are more focused on examining the level of knowledge and awareness of consumers in takaful. This study has the potential to be applied in other sectors of Islamic finance such as Islamic banking and Islamic capital market.

Downloads

Download data is not yet available.

References

BNM. (2022). Financial Sector Blueprint 2022-2026. https://www.bnm.gov.my/documents/20124/5915429/fsb3_en_book.pdf

Hameed, W. U., Azeem, M., Ali, M., Nadeem, S., & Amjad, T. (2017). The Role of Distribution Channels and Educational level towards Insurance Awareness among the General Public. International Journal of Supply Chain Management, 6(4), 308–318. http://ojs.excelingtech.co.uk/index.php/IJSCM/article/view/1850/pdf

Hashem A. AlNemer. (2015). Participants’ Knowledge and Educational Background About Takaful Products & Services: An Empirical Study on Saudi Arabia. International Journal of Business, Economics and Law, 7(1), 43–53.

Hassan, R., Salman, S. A., Kassim, S., & Majdi, H. (2018). Awareness and Knowledge of Takaful in Malaysia: A Survey of Malaysian Consumers. International Journal of Business and Social Science, 9(11). https://doi.org/10.30845/ijbss.v9n11p6

Hidayat, S. E. (2015). The Role of Education In Awareness Enhancement of Takaful: A Literature Review. International Journal of Pedagogical Innovations, 3(2), 107–112.

Hidayat, S. E., & Rafeea, A. M. (2014). Public Awareness Towards Takaful Concept and Principles : A Survey in Bahrain. International Journal of Excellence in Islamic Banking and Finance, 4(2), 1–16. https://doi.org/10.12816/0010778

Ismail, N., Othman, A. A., Mat Din, S. Z., Mohamed Yousop, N. L., Abu Bakar, N., & Hj. Mohamad Shafi, R. (2012). An Investigation of the Awareness Level of Takaful Products among the Micro Enterprises in Malaysia. International Conference on Excellence in Business Sharjah, United Arab Emirates.

Karbhari, Y., Muye, I., Hassan, A. F. S., & Elnahass, M. (2018). Governance mechanisms and efficiency: Evidence from an alternative insurance (Takaful) market. Journal of International Financial Markets, Institutions and Money, 56, 71–92. https://doi.org/10.1016/j.intfin.2018.02.017

Nafrees, A. C. M. (2020). Awareness of Islamic Insurance and Conventional Insurance among Sri Awareness of Islamic Insurance and Conventional Insurance among Sri Lankan : A Comparative Study. December.

Norlida, A. M., Rosemaliza, A. rashid, & Ibrahim, Y. (2004). Awareness and Ownership of Family Takaful Scheme Among Muslim Community in Malaysia. Journal of Muamalat and Islamic Finance Research, 1(1), 121–136.

OECD. (2009). Financial Literacy and Consumer Protection : Overlooked Aspects of The Crisis (Issue June, p. 22).

OECD. (2018). OECD/INFE Toolkit for Measuring Financial Literacy and Financial Inclusion (Issue March).

OECD. (2020). OECD/INFE 2020 International Survey of Adult Financial Literacy. www.oecd.org/financial/education/launchoftheoecdinfeglobalfinancialliteracysurveyreport.htm

Rutledge, S. L. (2010). Consumer Protection and Financial Literacy - Lessons from Nine Country Studies (No. WPS5326; Policy Research Working Paper, Issue June).

Siti Fariha, M., Abdullah, N. A., Aziz, N. A. A., & Azmi, N. F. (2016). the Perception and Awareness on Takaful: A Descriptive

Analysis Between the Gender. Intercontinental Journal of Markeitng Reserach Review, 4(10), 58–63.

Soualhi, Y., & Shammari, A. A. R. Al. (2015). Indicators of Takaful Awareness among Kuwaitis. Journal of Islamic Banking and Finance, 3(2), 75–89. https://doi.org/10.15640/jibf.v3n2a9

Published

2023-12-01
CITATION
DOI: 10.33102/jmifr.513
Published: 2023-12-01

How to Cite

Muhammad Nasir, N. I., Hassan, R. ., & Ahmad Zamri Osman. (2023). Spectrum Of Consumer Awareness In Islamic Finance: Takaful Industry In Malaysia. The Journal of Muamalat and Islamic Finance Research, 20(2), 125-134. https://doi.org/10.33102/jmifr.513

Issue

Section

Regular Issues