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The factors influencing the demand for family takaful product: a viewpoint from takaful's agent
Norazlina Mamat1, Nurul Liyana Mohd Razali2, Shofiyyah Moidin3, Nur Hafizah Harun4, Muhammad Syukri Mohd Ashmir Wong5, Farrah Payyadhah Borhan6.
: The emergence of the takaful sector in Malaysia in the early 1980s was motivated
by the Muslim public's need for a Shariah-compliant alternative to conventional insurance and
to supplement the operations of the Islamic bank, which had been formed in 1983. It was
primarily precipitated by a ruling issued by the Malaysian National Fatwa Committee, which
determined that life insurance in its current form is an invalid contract owing to the existence
of the elements of Gharar (uncertainty), Riba' (usury), and Maysir (gambling). The growth rate
of Malaysian Takaful since 1984 is excellent. From just two operators in 2003, the number of
takaful operators has increased to fifteen over the past 30 years, demonstrating the sector's
rising popularity and growing significance to the growth of Islamic finance. Even though the
industry's penetration rate reached 18.6% in 2021 compared to 16.9% in 2020, the increase in
penetration rate for 2021 remains low because it has not yet reached the BNM's target of 25%
of the population set in its Financial Sector Blueprint 2011-2020. As a result, this study was
conducted to prioritize the factors that can be used to boost demand and subsequently increase
growth and penetration rates in the takaful industry. Hence, the data was collected through
primary and secondary data by interviewing two members of the takaful agent in the Ikhlas
Tijarah Sinergi Associate PLT (IKTiSAS) Company and reviewing the past research. Thus, the
study found that the service quality provided by the takaful operator is the most influential
factor that can affect the demand for Family Takaful products from the viewpoint of the
Takaful's agent.
Affiliation:
- Universiti Teknologi MARA, Malaysia
- Universiti Teknologi MARA, Malaysia
- Universiti Teknologi MARA, Malaysia
- Universiti Teknologi MARA, Malaysia
- Universiti Teknologi MARA, Malaysia
- Universiti Teknologi MARA, Malaysia
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