DETERMINANTS OF ADOPTING ISLAMIC INSURANCE IN JIGAWA STATE: A LOGISTIC REGRESSION APPROACH
Keywords:
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.
