Purchase Intention of Islamic Insurance: A Case Study of Takaful in Bangladesh

Islamic Insurance has recently been one of the most prominent Islamic financial services among the Muslim as well as non-Muslim community in the world. In Bangladesh, the service is also getting popularity to the people for the special features like risk-bearing by all of the participants, interest-free investment of funds etc. Considering the rapid growth of Islamic financial products worldwide and inadequate research on the limited reach of these services, this study aims to explore the factors affecting the customers’ purchase intention of Islamic insurance services in Bangladesh. The cross-sectional study has been conducted based on the Structural Equation Modeling (SEM) on the data collected through a self-administered questionnaire from 392 respondents. According to the study, it is revealed that compatibility, religiosity, customer awareness, reliability and trust have significant positive impact on customers’ purchase intention towards Takaful services in Bangladesh. The study result will help the service providers to look into the factors while tailoring their products and services. The policy makers should also know about the determinants so that they can formulate policies that promote the growth of the takaful industry and increase access to these products for consumers.