Determinants of Family Takaful (Islamic Life Insurance) Demand: A Conceptual Framework for a Malaysian Study

  •  Ahmad Shukri Yazid    
  •  Juliana Arifin    
  •  Mohd Rasid Hussin    
  •  Wan Norhayate Wan Daud    


Family Takaful is one of the service sectors that are expected to continue to drive growth in the economy. Thus,
the family Takaful market continues to play an important role in supporting economic and social development.
However, in Malaysia, family Takaful market is still at a lower penetration level if we were to compare to other
developed countries even though the Takaful industry continues to sustain strong performance amidst challenges
in a competitive environment. Evidence has shown that the percentage of society covered by family Takaful
contracts in Malaysia is still very low compared to conventional insurance. Therefore, the study aims to propose
a conceptual framework for the determinants of family Takaful demand in Malaysia. From a review of the
literature available in this particular area of interest, there are two categories of factors that are found to be the
main determinants of family Takaful. These factors are the socio-demography and economic factors.

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