Empirical analysis of South African Muslims’ acceptance of Takaful life insurance

Abstract

Abstract: This study investigated the acceptance and purchasing of Takaful life insurance policies among South African Muslims using the Theory of Reasoned Action (TRA) as the theoretical model. Data were obtained by administering a survey to 235 Muslims in the Gauteng Province of South Africa. Statistical analysis of the data was carried out using the Statistical Package for Social Sciences Research and SmartPls. The results suggest that attitude towards Takaful life insurance purchases and subjective norms are salient determinants of participants’ behavioural intention towards Takaful insurance policies. Furthermore, actual behaviour towards this Islamic financial product is significantly predicted by behavioural intention. The findings of the study contribute to enhancing our understanding of Takaful life insurance policies acceptance and purchase among South African Muslims – an area that is sparsely investigated – and validate the TRA in a South African Muslim sample