Takaful Agents Research Articles

Top-Down or Bottom-Up? Choosing the Best Path of Management for Waqf-Takaful Death Compensation Product in Malaysia

In Malaysia, the integration of waqf and takaful for death compensation products aims to enhance financial protection within the Islamic finance framework. However, the effectiveness of this integration is influenced by the management approach adopted, either top-down or bottom-up. The top-down approach, driven by high-level government entities such as Bank Negara Malaysia (BNM) and the Ministry of Finance (MOF), promises streamlined processes and uniformity. Conversely, the bottom-up approach involves grassroots-level engagement through individual takaful agents, which emphasizes personalized interactions and alignment with local needs. Despite these theoretical benefits, there is a lack of empirical evidence assessing the practical impact of these approaches on key dimensions such as participant engagement, compliance with Islamic law, implementation speed, and institutional support. This study seeks to address this gap by applying a qualitative research design, including in-depth interviews with experts and comparative analysis methods, to evaluate the advantages and limitations of each approach. The goal is to provide actionable insights for policymakers and practitioners to optimize management strategies and improve the effectiveness and relevance of waqf-takaful death compensation products in Malaysia.

Identifying the Key Quality of Takaful Agents Influence on Takaful Penetration: The Nominal Group technique approach

Agents are the most influential channel and act as intermediaries for marketing Takaful products. This article discusses the Nominal Group Technique (NGT) as an alternative method to develop a list of quality elements for efficient agent services. Based on the expert consensus, ten essential recommendations regarding quality elements to improve agent quality services have been proposed. The NGT approach allowed researchers to easily and quickly obtain element validation. Expert discussion, appraisal, and voting were conducted after identifying items derived from relevant literature. The study presents the findings and future research directions for academic and Takaful industry references.

Waqf –Takaful Compensation Model: The Documentation Framework Index (DFI) towards Good Governance Practices and Sustainability of Takaful Companies in Malaysia

The concept of Waqf in Takaful refers to the distribution of Takaful contributor death compensation benefits to selected religious institutions for Waqf property. In this given context, the Waqf is established upon the contributor's death, and the compensation received by the Waqf beneficiary will be utilized for religious welfare until the culmination of time on the day of judgment. Therefore, this study focused on the level of implementation of the Waqf-Takaful Compensation Model toward good governance practices and sustainability of takaful companies, using a Documentation Framework Index (DFI) which was developed based on the data collected from 106 takaful agents who were involved directly throughout the introduction of Waqf-Takaful Compensation Scheme until 2022. It was found that 88% of Takaful Agency documented the percentage of the death compensation to participants by choice. Followed by 81% of Takaful Agency declared participants have the right to decide the percentage of the Waqf to be contributed to religious institutions and 79% of Takaful Agency restricted participants can only Waqf the percentage of death compensation not to an individual but to religious institutions. However, there are still some weaknesses in several elements of documentation and marketing of Waqf –Takaful Compensation Scheme by Takaful companies that needs some improvement. Therefore, the Waqf-Takaful Compensation Model, facilitated by the Documentation Framework Index, presents a forward-looking approach that aligns with Islamic principles based on waqf and Takaful compensation practices which promotes good governance, fosters sustainability, and contributes to the overall growth and positive impact of the Takaful industry in the country. However, successful implementation of the Waqf-Takaful Compensation Model requires collaborative efforts from various stakeholders, including regulators, Takaful operators, scholars, and the community. Adequate awareness, education, and buy-in are essential for the widespread adoption of this innovative model.

Assessing Takaful Agents' Expertise and Training: Implications for Waqf-Takaful Compensation Governance in Malaysia

Assessing Takaful Agents' Expertise and Training: Implications for Waqf-Takaful Compensation Governance in Malaysia

Analisis Peran Media Sosial Sebagai Media Promosi Agen Dalam Meningkatkan Pemahaman Berasuransi Syariah

This aims study to determine the role of social media as a promotional media agent in increasing understanding of sharia insurance with a case study on family takaful agents in Medan city. This study uses a qualitative method that is descriptive. Then the data collection techniques in this study used interviews, observations (observations) and questionnaires with the Likert scale method with a total of 12 customer respondents who commented on social media agents who were informants in this study. The results of this study indicate that utilizing the role of social media as a promotional medium helps agents to increase understanding of sharia insurance, especially for customers. In fact, based on the results of interviews, Medan city family takaful agents argued that social media not only helps in promotion to increase understanding of sharia insurance, but can also generate new customers. Then to be able to measure the understanding of sharia insurance for family takaful customers it is measured through a questionnaire with four indicators, namely first, consumer knowledge with the results of very understanding criteria of 58.3%, understanding criteria of 33.3% and criteria of sufficient understanding of 8.3%. Second, previous or past experience with the results of very understanding criteria of 58.3%, 33.3% understanding criteria and 8.3% sufficiently understanding criteria. Then the third is information in the category of sufficient understanding of 100%. And fourth, social/environmental with sufficient understanding criteria of 100%.
 Keywords: Social Media, Promotion, Agent, Family Takaful

Factors Influencing Ethical Behavioral Intention among Takaful Agents

Despite the fact that contemporary insurance contracts are simple to read, this does not imply that they are simple to comprehend. Most people rely on trust when purchasing insurance. They trust the insurance agent to recommend and obtain appropriate coverage. Takaful agents act as consumers' representatives in managing their takaful plan participation procedures, while also providing consumers with transparent and clear information about takaful plans. This study is mainly focused on identifying the factors influencing ethical behavioral intention among takaful agents. Therefore, this study examines the relationship between attitude, subjective norms and perceived behavioral control on ethical behavioral intention among insurance agents by adopting the Theory of Planned Behaviour (TPB). A total of 100 questionnaires were collected from 100 Takaful agents from the Family agency and General Agency. To evaluate the raw data, the paper used the non-probability sampling technique and analyzed it by conducting reliability analysis, correlation analysis, and regression analysis. The results of this study indicated that there was a significant relationship between attitude and subjective norms toward ethical behavioral intention as the predictors. Hence, these findings assist the practitioners, particularly takaful providers in strategizing their efforts in terms of training aspects for their respective takaful agents.

Takaful Reporting on IFSB Requirements in Malaysia: Users and Preparers Perspective

Bank Negara Malaysia (2014) mentioned the importance of having meaningful disclosure to protect participants. However, it did not provide details of the elements of meaningful disclosure. There is no specific guidelines or standards of what should be reported and how detailed the items should be reported. Takaful operators have more knowledge in the operational aspect of takaful, compared to the participants. Authorities try to harmonise all the possible variations and gaps between takaful operators (preparers) and participants (users) for the benefit of the industry. Any gap between what is expected to be reported (desirable) and what is actually reported needs to be analysed in order to provide more information relevant to the users and to standardise the disclosure level. By adopting Sulaiman’s (2005) framework, the study determines what users and preparers perceive as meaningful disclosure on the Islamic Financial Services Board (IFSB) standards. The first two objectives of the study are to determine the disclosure perspectives of the two parties while the third objective is to examine if gaps exist between the two stakeholders. Questionnaire was distributed to takaful agents to examine their perception while content analysis was employed to evaluate the actual level of disclosure in takaful operators' websites. The gap analysis was conducted between the desired and actual level of disclosure and found significant differences among all the gaps. Additionally, the average level of disclosure is 44%. It is hoped that the findings will assist authorities in formulating guideline in takaful industry in Malaysia.

Users Perspective on Voluntary Disclosure of Takaful Policy Requirements in Malaysia

Takaful also known as Islamic insurance industry has been growing rapidly across the globe. The unique organizational structures of takaful operators, their products’ and participants’ rights have increased the demand for transparency and put additional pressure to voluntarily disclosed more information. This study focuses on disclosure of takaful information from user’s perspective. A checklist was developed to represent desirable level of disclosure based on various requirements and standards. To measure the voluntary disclosure level, the checklist was distributed to takaful agents to examine their perception of the disclosure on takaful information. The findings show that majority of the users (86.14%) agreed that all disclosure items on takaful policy requirements are meaningful. It is hoped that the findings will assist authorities in formulating guideline or policy pertaining to meaningful disclosure for the users in the future.

THE AWARENESS OF EDUCATION TAKAFUL AMONG CONSUMERS IN KUCHING, SARAWAK

Having a perfect education is among the factors that contribute towards developing a happy life and one of the five indispensables protected in maqasid al-Shari’ah. As a result, takaful agencies have produced education plans which help parents save and invest enough money for the future of their children’s education. In Malaysia, the understanding on the importance of takaful is still lacking especially about the education takaful. Therefore, this research is to investigate the issues regarding the awareness of education takaful in Kuching, Sarawak. The objective of this study is to explore the awareness of education takaful among the citizens in Kuching, Sarawak towards education takaful. This qualitative study employed semi-structured online interviews with three takaful agents and eight parents who agreed to be interviewed. The results of this study indicated that the level of awareness of education takaful in Kuching, Sarawak is still considered low.

Preliminary Insights on the Relationship of Islamic Work Ethics, Job Satisfaction and Loyalty of Takaful Agents

Takaful agents play a crucial role as they significantly increase the penetration rate of the takaful industry in Malaysia. In exercising the function of Takaful agents, they must observe their role as following Al-Quran and as-sunnah and practicing the Islamic work ethics. Thus, the loyalty of Takaful agents to remain in the Takaful industry is required. This study will provide preliminary insights into the role of Islamic work ethics (IWE) toward the loyalty of takaful agents. To achieve the study’s objectives, the literature review has been executed. The study findings found that the Islamic work ethic has a significant effect on the intention of the employee to stay or leave the organization. Numerous studies also indicated that IWE is closely associated with job satisfaction. Consequently, this study provides preliminary insights into Takaful operators as the principal-agent. Takaful operators are strongly advised to give proper attention to the concept of Islamic work ethic to retain more Takaful agents in the industry. The study also has proposed a model as there is a need to empirically test the influence of IWE on the loyalty of takaful agents in the future.

Sustainability & Successful Takaful Agents: What Matters?

This conceptual paper is written to review related literature about the sustainability of successful Takaful agents in Malaysia. Studies on Takaful agents’ sustainability have gained interest among scholars because Takaful contributes to the country’s development in terms of growing its economy, generating financial resources and creating job opportunities. Conversely, existing literature focusing on Takaful agents is still lacking. In view of this, this particular study attempts to develop a conceptual framework using an agent-principal relationship and motivation to explain this phenomenon. The integration of economic and management theories, mainly Takaful agent sustainability is insufficiently discussed and still infantile. Hence, this paper aims to close the gap by comprehensively reviewing all elements required in integrating the two theories that contribute to this phenomenon. It is important to note that Takaful agents’ motivation to apply agent-principal relationships is sustained, which meets the demand for the untapped market in the Takaful industry. Thus, this paper is significant as it provides a critical corpus of knowledge and a better understanding of both theories' elements.

Contractor Intention on Contractors’ All Risk Takaful Product in Malaysian Construction Industry

Objective – Contractors’ All Risks (CAR) Takaful is completely different from CAR conventional insurance. CAR conventional insurance involves elements of usury (riba), gambling (maysir) and uncertainty (gharar) in their resources and operations which is prohibited by Shari’ah. This paper aims to investigate the relationship between attitude, awareness, understanding, religiosity, subjective norm, service quality and role of agents with contractor’s intention in choosing CAR Takaful products based on theory of planned behaviour (TPB). In addition, this paper aims to address the most influential factors that affect contractor’s intention in choosing CAR Takaful products. Design/methodology – Using primary data collection method, 421 questionnaires were distributed to target respondents comprising Bumiputera contractors in Malaysia except for Sabah and Sarawak, who are registered with CIDB from grade G1 to grade G7 and also a member of Persatuan Kontraktor Melayu Malaysia (PKMM). The data were analysed using Statistical Package for the Social Sciences (SPSS) software version 25. Results – This study's results reveal a significant relationship between attitude, awareness, understanding, religiosity, subjective norm, service quality, and role of agents with contractor’s intention in choosing CAR Takaful product. In addition, this research also verifies that attitude is the most important factor that affects contractor’s intention in choosing CAR Takaful products. Contribution – This paper will bring significant benefits to the Takaful operators and Takaful agents in Malaysia to formulate additional strategies, policies and service quality to attract Bumiputera contractors to choose CAR Takaful product.

Factors that Influence the Ethical Behaviours of Takaful Agents

Most takaful companies in Malaysia require an agent as a representative for them to promote products and takaful services to the community. The agent receive rewards in the form of commission depending on his subscription. However, in conducting the job as an agent in promoting takaful products and dealing with customers on behalf of the company, there are a few ethical issues that arise. Some of the issues include being deceitful in explaining a product or takaful service, giving false information, hiding information and delaying settlement claim. Therefore, the matter arises of the factors that influence these agents’ behaviours. How does these factors influence the performance of the takaful industry? Does the factors influencing the takaful agents’ behaviours lead to an ethical or non-ethical person? To answer these questions, this paper has two objectives. Firstly, this paper is written to identify ethics and factors that influence takaful agents’ behaviours. Secondly, the paper is written to analyse these ethics and factors that influence takaful agents’ behaviours. The paper applies a qualitative approach by employing document analysis. Next, the data obtained will be analysed using content analysis method. The findings of the study show that target sales are one of the dominant factors that influence behaviour among takaful agents. Hence, based on the findings of this study, this paper offers two main suggestions. Firstly, the management of takaful company needs to create positive working environment among takaful agents. Apart from that, takaful companies must also have a strong level of leadership in terms of character, values and ethical behaviour.

Trust in takaful agents: antecedents and consequences

PurposeThe purpose of this study is to explain factors contributing towards the development of trust in takaful agents and its consequences.Design/methodology/approachA total of 182 completed survey questionnaires have been collected. Descriptive analysis, exploratory factor analysis and structural equation modeling analysis are used to analyse the data.FindingsThe result indicates that clients’ trust in takaful agents is influenced by the agents’ communication and expertise as well as the image of the takaful operator represented by them. Also, trust in takaful agents affects clients’ loyalty and intention to continue service with the existing agent.Practical implicationsThis paper makes contributions by briefly discussing several recommendations to increase clients’ trust in takaful agents.Originality/valueThis research paper is related to takaful agent–client relationships and can be used to formulate appropriate marketing strategies for building stronger relationships.

The Roles of Health Awareness and Knowledge in Medical Takaful Purchase Intention

The present study aims to examine the factors of health awareness and knowledge that influence customers’ intention to use medical takaful coverage among the public sector officers in northern Malaysia. A quantitative research methodology was adopted to answer the objectives progressively. In the current research, data from 313 respondents were collected via questionnaires from three different organisations, namely the police department, the fire and rescue firefighter department, and the education department. Moreover, the data analysis was performed using SPSS version 22. The analysis revealed a significant and positive relationship between health awareness and knowledge and the customers’ intention to purchase medical takaful. Apart from that, the results also indicated that only health awareness has a significant influence on the intention with the strongest impact. On the other hand, the knowledge variable had no significant influence on customers’ intention to use medical takaful coverage among the respondents. A number of important limitations need to be considered in the present study which will be further explained in the conclusion section. Furthermore, the current research provides some major implications. First, on behalf of the takaful industry, the findings of the present study encourage the takaful operators, marketing teams, staffs, and agents to improve their performance by increasing their efficiency, creativity, innovation, and knowledge of product features in developing a good impression among potential customers. Second, on behalf of the public sector officers, the results of the study show the important need to enhance the customers’ intention to use medical takaful coverage. Third, the suitability of factors such as health awareness, knowledge and customers’ intention in the previous theory and literature on takaful industry has been proven in the current research. This study helps the marketing team of the takaful operators to formulate marketing strategies that can attract potential customers to participate in the medical takaful coverage, especially among the public sector officers.

Persepsi dan Tahap Pengetahuan Peserta Dan Agen Takaful Terhadap Pelaksanaan Zakat Takaful: Kajian Di Shah Alam, Selangor (Perceptions and Knowledge Levels of Takaful Participants and Agencies towards Implementation of Takaful Zakat: A Study In Shah Alam, Selangor)

When it comes to zakat obligations, people only know certain types of zakat that are obligated to be issued. There are two types of zakat; zakat fitrah and zakat property. However, zakat’s division may vary according to the state's fatwa. In Selangor, Lembaga Zakat Selangor (LZS) is the body that governs the administration and implementation of Zakat. The breakdown of zakat property is Zakat on Income, Zakat on Business, Zakat on Savings, Zakat on Gold and Silver, Zakat on Investments and Shares, Zakat on KWSP, Zakat on Paddy, Zakat on Agriculture, Zakat on Wealth and Treasure, and the Zakat on Takaful. However, this study will only focus on Zakat Takaful. Under Zakat Takaful, there are several divisions which are Zakat Wang Takaful/Takaful Investment, Zakat on Maturity Policy, Takaful Compensation, Tabarruq Fund, Benefit of Total and Permanent Disability, and Compensation of Conventional Insurance Policy. Each of these sections has its calculation method which will be explained further. This study was conducted to identify the level of knowledge and acceptance of Takaful Muslim consumers on the implementation of Zakat Takaful that has been introduced by LZS. Besides, this study will also look at the knowledge of Takaful agents and their willingness to disseminate information of Zakat Takaful to their customers. This study was conducted by using the sampling method and descriptive data analysis. The study found that on average, respondents' knowledge on Zakat Takaful is low with a mean of 2.32. However, the mean for acceptance is 3.93 which is set at a high level thus showed a good acceptance of the survey respondents. Through this study, it can be concluded that knowledge and acceptance are both very important in achieving the objective of implementing Zakat Takaful. Knowledge by Takaful participants who are also assisted by agents who play the role of conveying knowledge of Zakat Takaful is directly perceived to have a more effective effect in addition to the behavior/attitude that forms the intention of Takaful participnts to accept the implementation and to pay Zakah Takaful. This study is also expected to be the push factor among the zakat agents to play a role in disseminating the right information about Zakat Takaful to their customers, which also can be regarded as one of the da'wah forms.

An Assessment of Customer’s Preferences on The Selection of Takaful Over Conventional: A Case of Saudi Arabia

This paper aims at assessing the motivational factors that influence the customer’s preferences of Takaful over conventional insurance. The customers’ information about the Takaful products and services based on sharia are identified in order to enable them differentiate Takaful and conventional insurance. The research uses mixed method of data collection. This comprises of questionnaires and in-depth interviews with the respondents from four selected Takaful industries in Saudi Arabia. The questionnaires were analysed using simple percentages and for the interviews, thematic analyses were used. Based on the findings of the study, the customer’s preferences on the selection of Takaful over conventional insurance include protection of Takaful product by sharia, support from the government. Similarly, the absence of risk incurred or transferred to participants, funds contributed in the spirit of brotherhood for all members. Moreover, another customer’s preferences is that contributions (tabarru’) are invested in non-interest based capitalization by the Takaful agents and profits are shared according to individual contributions. Based on Takaful, donations are established at the pooling system in line with sharia and they are formed on the bases of sympathy, consciousness of the idea of tabarru’ as well as abstaining from gharar, maysir and riba.

TAKAFUL AGENT MUST FOSTER PUBLIC UNDERSTANDING OF TAKAFUL

The Takaful industries need agents to market the Takaful products to the public. Takaful agents play a great role in current marketing practice for Takaful distribution. Besides representing their operators and products, the agents would present this Takaful as an Islamic Insurance. The agents need to foster public understanding of Takaful instead of Conventional Insurance. To achieve this, all of the values as stated in the Al-Quran and practice through the Sunnah will be implemented by the Takaful agents to realize the objective of Takaful as an Islamic alternative for conventional Insurance. Of course this can be an option for the public to choose either one, but still, as Muslim people, we should support Takaful for Muslim sake.

Leveraging on Religious and Ethical Aspects in Marketing Takaful Products- Malaysian Experience

Takaful serves as an alternative for the Muslims to fulfill their insurance needs in a Shariah compliant manner. Participating in a takaful scheme, while aimed mainly at gaining protection against the risks, could also be perceived as a scheme of mutual help. The religious and ethical aspects of takaful can be an attractive value proposition to the people especially Muslims, as in Islam helping those in need with sincere intention for the sake of Allah is an act of piety rewarded by Him. Apart from the inherent spiritual distinctive feature of takaful, takaful products might also provide for other religious contentment. Some takaful products cover debt settlement for the deceased, payment for outstanding zakat, execution of charitable donation or waqaf and even providing for the performance of hajj, which are religiously of tremendous values for the deceased. All these features could be attractive marketing points for takaful especially among the Muslims. This study focuses on the religious and spiritual dimensions of takaful products and explores on the experience of a group of takaful agents of a selected takaful operator in marketing their products by leveraging on these aspects.

MAQĀṢID AL-SYARῙ‘AH DALAM PENAWARAN PRODUK TAKAFUL WANITA: KAJIAN DI PENGENDALI TAKAFUL TERPILIH DI MALAYSIA: Maqāṣid al-Sharī‘ah in Offering Takaful Product for Women: A Study At Selected Takaful Operator in Malaysia

Since 2005 and recent years, takaful product is getting attention and growing substantially due to people are vulnerable to health risk especially women. Irony, the offering product takaful for women can managing their risk in financing, critical illness and so on. This study used content analysis on six product disclosure sheet of takaful that offered by four takaful operators. In addition, the researcher also have collected data through interview with Shariah officers, product development officers and takaful agents to understand the whole structure of the product. This finding of this study shows that takaful product for women is in line with Maqāṣid al-Sharī‘ah.