Perception and Adoption of Islamic Insurance in Malaysia: An Empirical Study

Abstract

Abstract: The main purpose of the study is to examine the Malaysian customers ’ willingness to adopt Islamic insurance services as well as the factors that may influence their behaviour. A total of 200 questionnaires were randomly distributed to Malaysian customers. The data analysis was done through Structural Equation Modelling and t-test. The findings indicate that the Malaysian customers are willing to adopt Islamic insurance services, and their decision is depending on two factors i.e. compatibility and awareness. The findings have great implications to the theory, to the policy makers and regulations as well as to the practitioners. Key words: Malaysia Takaful Islamic Insurance SEM T-test