PERCEPTION & AWARENESS AMONG MUSLIM CONSUMERS: COMPARATIVE STUDY OF TAKAFUL & CONVENTIONAL INSURANCE

Ayesha Ashraf; Adil Riaz; Aamir Sohail

Ayesha Ashraf Ph.D. Scholar, Monash Business School, The Monash University, Victoria, AUSTRALIA
Adil Riaz Lecturer, Government College University Faisalabad, Hafizabad Campus, Pakistan
Aamir Sohail Lecturer, Department of Commerce, Thal University Bhakkar, Punjab, Pakistan

Keywords: Awareness, Conventional Insurance, Muslim Consumers, Pakistan, Perception, Takaful

Abstract

This study examines that how knowledge and perception affect Muslim policyholders of Takaful & conventional insurance businesses in developing economy. Questionnaire containing 26 items was used to gather data. The regression analysis was used and results of study reveal that awareness of Takaful holders is higher on Islamic insurance products and Islamic finance products in comparison to convention insurance policyholders. Perception of the conventional holders towards their companies is better than Takaful holders. The conventional insurance policyholders had better see products offered by their companies and companies themselves. Takaful operators will understand public awareness about Takaful and public perception of their insurance and Takaful providers it helps in policy selection for existing and future customers of Takaful and conventional insurance companies. In Pakistan, no study of such kind was conducted in the previous few years using the variables utilized in present study. Results of current investigation have practical implications for Takaful operators & conventional insurance companies operating in developing countries like Pakistan in order to revist the policies in vogue.