Knowledge and Behaviour Regarding Takāful among Non-Muslim Consumers in the United Arab Emirates

Abstract

Takāful is an insurance mechanism which satisfies the religious values of Muslim consumers and which has exhibited steady growth in Islamic finance systems. However, takāful does not comprise a significant share of the global insurance market, which is dominated by stock-based, mutual and cooperative organisations. Despite literature advocating its appeal to non-Muslim consumers, there is a gap in research exploring consumer behaviour in this demographic group. This qualitative phenomenological study utilises the theory of planned behaviour as a framework to explore the beliefs and attitudes towards takāful among non-Muslim consumers in the United Arab Emirates (UAE) and to identify potential salient mutual-cooperative and religious attributes. The data demonstrate that non- Muslim consumers are unfamiliar with takāful products and this knowledge deficiency generates attitudes that negatively influence decision making; however, the provision of product information reveals that faith-based attributes create beliefs that may be salient to attitude formation and influence decision making when applied to the theory of planned behaviour. This study is important for takāful researchers in advancing the discussion on non-Muslim consumer behaviour, and for takāful operators in understanding non-Muslim behavioural influences as part of a strategic expansion of that demographic. The results suggest further research is required to identify takāful’s salient attributes and their influence in the decision-making process for non-Muslims. In addition it asks what marketing and promotional strategies should be employed to improve awareness and understanding of takāful among non-Muslims.