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It was reported that Malaysia has experienced a low penetration rate for the Family Takaful business despite the many forms of incentives provided by the Government. The available literature that focuses on life assurance and related research on Family Takaful is rather scarce. In view of this, it must be mentioned that, this particular study is significant because it provides a critical insight and better understanding of the critical factors that actually determine the Family Takaful demand in Malaysia. Thus, the main objective of this study is to determine the critical factors for Family Takaful demand among Muslim customers in Malaysia. The study involves a survey using structured questionnaires to solicit responses from Muslim customers who have joined Family Takaful plans in selected leading Takaful companies. Data analysis involves the use of stepwise regression analysis. From a set of factors that contributed to the Family Takaful demand in this study, the eventual result of regression analysis showed that religious adherence (including all dimensions such as faith and belief, obligatory Islamic practices, and highly recommended non-obligatory Islamic practices), reputation and image were the critical factors that influence family Takaful demand among Muslim customers in Malaysia.
AHMAD SHUKRI YAZID, MOHD RASID HUSSIN. (2014) Demand of Family Takaful in Malaysia: Critical Determinant Factors Examined, International Review of Management and Business Research, Volume 3, Issue 2.
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