DETERMINANTS OF ADOPTING ISLAMIC INSURANCE IN JIGAWA STATE: A LOGISTIC REGRESSION APPROACH
DOI:
https://doi.org/10.24191/JIPSF/v6n22024_47-57Keywords:
Takaful, Adoption, Social influence, Relative advantage, Shari’a complianceAbstract
The study examined the influential factors for the adoption of Islamic insurance in Jigawa state, Nigeria using logistic approach. The study collected survey data from household heads using Taro Yammane (1976) statistical sampling formula to distribute 400 questionnaires across the two local government areas in the state of which 87% was fully returned. A simple random sampling technique was used in distributing the self-administered questionnaires. Descriptive statistics and logistic regression were used for the data analysis. The descriptive analysis was used for the socioeconomic characteristics of the respondents and the prospects of adopting takaful. Cronbach Alpha was used for the reliability test of the questionnaire after a pilot test and the result shows that the instrument was reliable for the model employed in the study. The result from the logistic regression shows Sharia compliance, Social influence, and Relative advantage are statistically significant as the factors that influence the adoption of takaful while awareness is statistically not significant. It is recommended that Islamic insurance companies open branches in Dutse and Hadejia local government areas since the result shows it is prospective.
References
Abubakar, A.A & Buerhan, S. (2017). Takaful practice in Nigeria, present and futures. institute of Islamic banking and finance, International Islamic University Malaysia, Kuala Lumpur Malaysia.
Ahmed, M. K. & Abdullah, A. (2019) The micro-enterprising size and acceptance of Islamic health insurance (takaful) in Northwestern Nigeria. Journal of Islamic Monetary Economics and Finance, 5(3): 541-558.
Albaity, M. & Rahman, M. (2019) The intention to use Islamic banking: an exploratory study to measure Islamic financial literacy. International Journal of Emerging Markets 14 (5).
Ali, M., Ali, S. R., Hong, C. P. & Amin, H. (2019). Consumer acceptance toward takaful in Pakistan: An application of diffusion of innovation theory. International Journal of Emerging Market, 14 (4).
Cameron, A. C.& Trivedi, P. K. (2009). Microeconometrics Using Stata. Stata Corp LP.
Echchabi, A. & Mohammed, A. A. (2015). Factors influencing the Yemeni customers’ intention to adopt Takaful products. Gadjah Mada International Journal of Business, 17 (1), 25-45.
Gulzar, H. R. & Zurbuegg, R. (2007). Awareness of Islamic banking products among Muslims: The case of Australia. Journal of Financial Services Marketing (12), 65–74. doi: https://www.doi/10.1057/palgrave.fsm.4760060
Hussein, L. K. & Sharofiddin, A. (2021). The Level of Acceptance and Awareness of Takaful in Nigeria. Journal of Islamic Finance 10 (1), 46-58.
Ikramovich, I. N. & Suleman, N. D. (2019). A conceptual understanding and significance of takaful (Islamic insurance): History, concept, models and products. International Journal of Innovation Education and Research, 7(4), 280-298. https://doi.org/10.31686/ijier.Vol7.Iss4.1408
Ismail, E. (2015). Takaful: The great potential in Nigeria. Retrieved from www.meinsurancereview.com
Khan, A., Abdur Rashid, H., Muhammad, R. S. Y. and Abbas, S. (2020). Determinants of customer perception about the adoption of Islamic insurance (Takaful) in Pakistan. Journal of Business and Social Review in Emerging Economies, 6 (4).
Lewis, M. K. (2011). The evolution of takaful products. West Sussex: John Wiley & Sons, Ltd
Mehboob, I, S., Bin Noordin, K., Arijo, S., Shaikh, F. & Alsharief, A. (2019). Predicting customers’ adoption towards family takaful scheme in Pakistan using diffusion theory of innovation. Journal of Islamic Marketing 11 (6), 1761-1776. https://www.doi.org.10.1108/JIMA-02-2018-0037
Mohamed, G. B. & Ali, Y. M. (2023). Determinants of customer perception on the adoption of takaful in Somalia. Journal of Islamic Accounting and Business Research.
Mohd, M. S., Salwani, S. R., Megat, N. L., Azizan, E. & Irwani, N. A. (2017). Developing a sustainable model for flood victims in Malaysia. Journal of Islamic Accounting and Business Research, 1759-0817.
Musa, M. K., Magaji, A. A., Audu, I. & Baba, M. (2020). Determinants of clients’ intention to adopt takaful services in Gombe state. International Journal of Accounting and Finance 9 (2).
NAICOM Operational Guidelines (2013). National Insurance Commission Nigeria: Operational Guidelines 2013: Takaful-Insurance Operators.
National Population Commission (2006). Report of the National Commission on population and household census, NPC, Jigawa State Office.
National Population Commission (2019). Report of the National Commission on population and household census, NPC, Jigawa State Office.
National Population Commission (2022). Report of the National Commission on population and household census, NPC, Jigawa State Office.
Noor Takaful Plc (2018). Noor insurance products and services. Retrieved from: www.noorTakaful.ng
Olorogun, L. & Echchabi, A. (2012) Perception and adoption of Islamic Insurance in Malaysia: An empirical study. World Applied Sciences Journal 20 (3): 407-415.
Rogers, E. M. (2003) Diffusion of Innovations Fifth Edition. 5th ed. New York: The Free Press.
Salami, K. D., Ilu, K. J., Gidado, A. H., Muhammad, Y. K. & Ahmed, B. (2020). household’s responses to the roles of trees as a windbreaker in Dutse local government area of Jigawa State, Nigeria.
Sa’ad, U., Muhammad, A. M., Muhammad, I. A. (2023). Willingness to pay for improved electricity among residential customers in Kano, Katsina and Jigawa states of Nigeria. The Journal of Economics and Finance, 7 (2).
Shabiq A. & Hassan, Z. (2016) Factors affecting adoption of Takaful (Islamic Insurance) in the Maldives, International Journal of Accounting & Business Management, 4 (1).
Stern, P. C. (2000). New environmental theories: towards a coherent theory of environmentally significant behavior. Journal of Social Issues, 56 (3). https://doi.org/10.1111/0022-4537.00175
Taber, K. S. (2018). The use of Cronbach’s alpha when developing and reporting research instruments in science education. Res SciEduc, 48, 1273–1296 .https://doi.org/10.1007/s11165-016-9602-2
Umar, A.M., Muhammad, B. F., Muhammad, Y., Mohammed, A. and Abdurrahman, S. L. (2020) Determination of microbial quality of tsire offered for sale at Hadejia Local Government Area, Jigawa State. Nigerian Journal of Animal Production 47 (3):83 - 89.
Yasin, N., & Ramly, J. (2011). Takaful: A Study Guide (1st ed.). Kuala Lampur: IBFIM.
Yahaya, I. A. (2016). Acceptance and patronage of insurance services in Northern Nigeria. Seminar paper in the Department of Business Administration, Federal University Kashere Gombe State, Nigeria.
Yammane, T. (1967). Statistics, 2nd edition. Herper & Row.
Yassin, A. S. A. & Khadar, A. A. (2016). Determinants of Islamic insurance acceptance: Empirical evidence from Somalia. European Journal of Business and Management, 8 (15), 102-108.
Yusuf, T, O., Gbadamosi, A. & Hamadu, D. (2009). Attitude of Nigerians towards insurance services: An empirical study. African Journal of Accounting, Economics, Finance and Banking Research, 4(4).
Downloads
Published
Issue
Section
License
Copyright (c) 2024 Lawal Abdullahi Abubakar, Gambo Babandi Gumel, Usman Sa’ad
This work is licensed under a Creative Commons Attribution 4.0 International License.
