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Modeling the Socio-Economic Factors Affecting Islamic Insurance Adoption: A Structural Equation Modeling Analysis

Author

Listed:
  • Youssef Chetioui

    (School of Business Administration, Al Akhawayn University in Ifrane, Morocco)

  • Yassine El Bouchikhi

    (School of Business Administration, Al Akhawayn University in Ifrane, Morocco)

  • Hind Lebdaoui

    (School of Business Administration, Al Akhawayn University in Ifrane, Morocco)

  • Meryem Ennassiri

    (School of Business Administration, Al Akhawayn University in Ifrane, Morocco)

  • Hanane Jannah

    (School of Business Administration, Al Akhawayn University in Ifrane, Morocco)

  • Ghita Yunsi

    (School of Business Administration, Al Akhawayn University in Ifrane, Morocco)

  • Imane Zhar

    (School of Business Administration, Al Akhawayn University in Ifrane, Morocco)

  • Ayoub Ghamas

    (School of Business Administration, Al Akhawayn University in Ifrane, Morocco)

Abstract

While Islamic banking products have exhibited substantial growth in a number of Muslim countries, their market share remains restricted in others (i.e., Morocco). The current research aims to elucidate the key drivers of Islamic insurance (Takaful) adoption among Moroccan banking consumers. To achieve this goal, we propose and assess an integrated conceptual framework combining the Theory of Planned Behavior (TPB), the Diffusion of Innovation theory (DOI), and other constructs borrowed from prior literature (i.e., Religiosity). Through an online self-administered questionnaire, data was collected from 204 Moroccan respondents and analyzed using Partial Least Squares Structural Equation Modeling. Our findings reveal that while comparative advantage, religiosity and attitude positively influence respondents’ behavioral intention toward Takaful adoption, perceived complexity had a negative impact on takaful adoption. This research is among the first to evaluate the antecedents of behavioral intention towards Islamic insurance (Takaful) following its recent introduction to the Moroccan Market. Ultimately, it presents an important contribution to the limited literature on banking consumers’ perceptions of Islamic banking products in a market where Islamic banks are still at an infancy stage.

Suggested Citation

  • Youssef Chetioui & Yassine El Bouchikhi & Hind Lebdaoui & Meryem Ennassiri & Hanane Jannah & Ghita Yunsi & Imane Zhar & Ayoub Ghamas, 2024. "Modeling the Socio-Economic Factors Affecting Islamic Insurance Adoption: A Structural Equation Modeling Analysis," International Journal of Economics and Financial Issues, Econjournals, vol. 14(3), pages 106-114, May.
    • Handle: RePEc:eco:journ1:2024-03-13
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    References listed on IDEAS

    as
    1. Abdelghani Echchabi & Lukman Ayinde Olorogun & Dhekra Azouzi, 2014. "Islamic insurance prospects in Tunisia in the wake of the Jasmine revolution," Journal of Islamic Accounting and Business Research, Emerald Group Publishing Limited, vol. 5(1), pages 15-28, April.
    2. Hatim Loudiyi & Youssef Chetioui & Hind Lebdaoui, 2022. "Economics of Electric Vehicle Adoption: An Integrated Framework for Investigating the Antecedents of Perceived Value and Purchase Intent," International Journal of Economics and Financial Issues, Econjournals, vol. 12(5), pages 29-38, September.
    3. Ramin Cooper Maysami & John Joseph Williams, 2006. "Evidence on the relationship between Takaful insurance and fundamental perception of Islamic principles," Applied Financial Economics Letters, Taylor & Francis Journals, vol. 2(4), pages 229-232.
    4. Maizaitulaidawati Md Husin & Asmak Ab Rahman, 2016. "Predicting intention to participate in family takaful scheme using decomposed theory of planned behaviour," International Journal of Social Economics, Emerald Group Publishing Limited, vol. 43(12), pages 1351-1366, December.
    5. Torraca, Ana Patrícia & Fanzeres, Bruno, 2021. "Optimal insurance contract specification in the upstream sector of the oil and gas industry," European Journal of Operational Research, Elsevier, vol. 295(2), pages 718-732.
    6. Muhammad Ali & Syed Ali Raza & Chin Hong Puah & Hanudin Amin, 2019. "Consumer acceptance toward takaful in Pakistan," International Journal of Emerging Markets, Emerald Group Publishing Limited, vol. 14(4), pages 620-638, August.
    7. Maizaitulaidawati Md Husin & Asmak Ab Rahman, 2016. "Do Muslims intend to participate in Islamic insurance?," Journal of Islamic Accounting and Business Research, Emerald Group Publishing Limited, vol. 7(1), pages 42-58, February.
    8. Hind Lebdaoui & Youssef Chetioui & Tahar Harkat, 2024. "Propensity towards Islamic banking among non-users: a mixed-methods analysis," Journal of Financial Services Marketing, Palgrave Macmillan, vol. 29(1), pages 45-66, March.
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    More about this item

    Keywords

    Takaful; Insurance; Islamic Finance; SEM; Morocco;
    All these keywords.

    JEL classification:

    • G41 - Financial Economics - - Behavioral Finance - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making in Financial Markets
    • G52 - Financial Economics - - Household Finance - - - Insurance

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