Customers’ Preference and Selection of Takaful Insurance Products: The UAE Case

The main objective of the study was to examine the customers’ willingness to use/continue using Takaful services in the UAE, as well as the factors that influence their decisions. In addition, the study attempted to explore the perception of Takaful and insurance professionals regarding the competitiveness and performance of both industries. The study used a mixed methodology approach, by relying on both quantitative and qualitative aspects of data collection and analysis. The findings revealed that customers in the UAE are keen to use/continue using Takaful services. Further, the findings showed that uncertainty has a negative influence on the intention to adopt Takaful services. While compatibility, social impact, and awareness were found to have a significant positive influence on the intention to adopt Takaful services in the UAE. Moreover, it was consistently highlighted in the interviews that though the Takaful industry is still relatively new compared to conventional insurance, it has better growth prospects and can highly benefit from the “catch up” effect, since this area was not as explored as the long-existed conventional insurance industry. Furthermore, issues like Shariah compliance, pricing, lack of financial technology usage, and liquidity limitations should be addressed, in order to improve the performance and competitiveness of Takaful industry.