Towards an Inclusive Risk Management Alternative: An Exploration of Cultural Responsivity of Pakistani Takāful Market

Abstract

Purpose: This study is conducted to explore the factors that affect the intention of people from different faiths in adopting Takāful. For this purpose, relevant literature was reviewed, and a pre-empirical conceptual framework was developed. The framework included the relevant and important constructs, according to which the interview questions were designed and fine-tuned.

Method: This study used two of Non-Probability sampling techniques i.e., convenience sampling and purposive sampling. This research is conducted qualitatively; 10 interviews are conducted from policyholders with minority religions and faiths and 5 interviews from Takāful practitioners and experts, a total of 15 interviews, contributed to a substantial amount of data. However, the data was reduced for the purpose of analysis in this piece.

Results: The findings of the study revealed that Consumer Awareness, Perceived Behavioral Control and Complexity directly affects the intention of minorities in adopting Takāful. Furthermore, all these factors along with Agent’s Behavior, Effective Marketing, Customer Experience and Needs of Customers were also identified as moderators. Security of Capital and Transparency in Takāful Process were the two new factors identified during data collection.