Takaful (Islamic Insurance) Adoption in Pakistan: A Moderating effect of Religiosity

Abstract

The purpose of this research study is to explore the moderating effect of religiosity against the intention to adopt Takaful insurance products and services in Pakistan. Earlier studies in the field of Takaful insurance have highlighted the degree of interaction between these two factors. The study includes four independent factors in addition to the dependent variable. The dependent variable is the intention to use Takaful Insurance products and services and independent variable are relative advantage, compatibility, social influence, and customer awareness of Takaful Insurance. Data from various regions of Pakistan were collected using a convenient sampling technique and a series of questionnaires as the survey instrument. The moderate effect of the factors has been predicted using moderated multiple regression analysis. The results show that religiosity significantly moderates the interplay of relative advantage, compatibility, social influence, awareness of Takaful, and intention to use Takaful Islamic insurance products. The result suggests that religious considerations influence Pakistani Takaful Insurance seekers' decisions to use Takaful Islamic Insurance goods and services in a significant way and it support hypothesis. The results of this study should help financial institutions develop marketing strategies that take these variables into account.