Determinant Factors That Influence Consumer's Intention To Participate In Takaful Scheme: Using Systematic Literature Review

Abstract

Fatwa Committee stated that conventional insurance is haram because it has the elements of gharar (uncertainty), riba’ (interest), and maysir (gambling). Takaful is alternative to conventional insurance which Takaful providing the protection following the Islamic law. The emergence of Takaful in Malaysia in early 1980s has inspired by the needs of Muslim. Nowadays, Takaful in Malaysia being one of an important business in Malaysia. Since more than two decades ago, Takaful industry has been going through a period of rapid and significant expansion. It is generally agreed upon that the growth of the Takaful market is one of the most important factors that will contribute to the sustained economic prosperity of nations all over the world especially Malaysia. The purpose of this paper is to study the determinant factors that influence consumer’s intention to participate in Takaful scheme. Systematic literature review used for this paper. The procedure for conducting a systematic literature review incorporates search strategies, selection criteria, the process of selection, data collection and data analysis for an obtained article. From five papers reviewed, we can conclude that all of them agreed that awareness, perceived behavioural control, social influence and attitude is the most significant to be the determinant factors that influence consumer’s intention to participate in Takaful scheme.