Muslims’ Perception of Islamic Insurance (Takaful) in Malaysia


  • Syed Ahmed Salman Faculty of Business and Accountancy, Lincoln University College, Petaling Jaya, Malaysia
  • Yukichika Kawata Faculty of Economics, Kindai University, Higashi Osaka, Japan


Islamic insurance, takaful, Malaysia, muslim, penetration rate


Conventional insurance does not comply with the teachings of Islam. Experts of Islamic finance recommend takaful as an alternative to conventional insurance. Malaysia is on track to becoming a global center for Islamic finance; the Malaysian market harbors fifteen takaful companies. The takaful industry, compared to other Islamic financial areas, is relatively new, and the infiltration rate remains low. This study aims to compare products offered by Islamic insurance, conventional insurance, and products in general to analyze the strengths and weaknesses of Islamic insurance. A questionnaire was distributed to insurance policyholders following any religion residing in Malaysia. The snowball sampling method was used, and 500 responses were obtained, from which respondents (Muslim) (N=322) was analyzed. This study revealed that 1)there is room for improving the clearness of takaful when explaining its features to Muslim, and 2) takaful is lag theprogress in many advertising methods such as websites, cinemas, and televisions.


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How to Cite

Syed Ahmed Salman, & Yukichika Kawata. (2022). Muslims’ Perception of Islamic Insurance (Takaful) in Malaysia. Journal of Islamic Finance, 11(1), 51–66. Retrieved from