Title: Why do some people participate or not participate in a Takaful? The case in Malaysia

Authors: Nor Syahidah Ishak

Addresses: Islamic Business School, Universiti Utara Malaysia, 06010 Sintok Kedah, Malaysia

Abstract: This paper exhibits the factors determining the demand for Takaful that are related to financial protection among households, to understand the demand for Takaful. Probit regression is used to examine why some people participate in Takaful and some do not; this is done through a questionnaire survey. Additionally, this study examines the influence of financial literacy and trust on Takaful demand. The findings reveal variables that are statistically significant for Takaful demand but have a positive or negative impact on explaining why some people join Takaful and some do not.

Keywords: Takaful; mikroTakaful; Islamic insurance.

DOI: 10.1504/GBER.2025.144251

Global Business and Economics Review, 2025 Vol.32 No.2, pp.177 - 196

Received: 28 Feb 2023
Accepted: 23 Jul 2023
Published online: 03 Feb 2025 *

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