Mediating effect of the agent on Takāful acceptance based on SEM approach

With an emphasis on the mediating function of agents, this study investigates the elements influencing Takāful acceptance among customers in Selangor and Kuala Lumpur. Although the Takāful industry has grown quickly as a Sharīʿah-compliant substitute for traditional insurance, its penetration rate is still relatively low, suggesting gaps in public knowledge, comprehension, and acceptability. A quantitative research design was used, and data was gathered by distributing structured questionnaires to Klang Valley residents between the ages of 25 and 50. Important concepts like awareness and knowledge, social impact, service quality, financial technology, and behavioural intention were measured in the study. Both direct and indirect interactions between variables were analysed using Structural Equation Modelling (SEM) using IBM-AMOS, with a focus on the mediating role of the agent. The results show that customers' intention to engage in Takāful is heavily influenced by awareness and knowledge, social influence, service quality, financial technology, and Sharīʿah compliance. Furthermore, behavioural intention was found to have a strong positive effect on actual behaviour. Crucially, the relationship between behavioural intention and actual involvement is strongly mediated by the agent's function, suggesting that agents are essential in converting intention into actual action. In addition to disseminating information, agents help prospective clients develop confidence and trust. In conclusion, the effectiveness of agents significantly increases participation levels, even though consumer-related criteria are significant determinants of Takāful acceptance. In order to increase knowledge and trust, the report recommends that Takāful operators and policymakers give priority to agent development, strategic communication, and public education activities. To boost Takāful acceptance and close the protection gap in Malaysia, agents' roles must be strengthened in addition to enhancing service quality and technology integration.