Factors influencing the Filipino-muslims’ willingness to participate in the takaful industry

The insurance industry continues to expand, and many consider insuring themselves and their families. Conventional insurance is contrary to Islamic principles because of the involvement of interest, uncertainty, and gambling which is strictly prohibited in Shariah (Islamic law), making Muslim Filipinos uncomfortable participating in it. Takaful, also known as Islamic insurance, follows Islamic rules and principles. However, the development of Islamic insurance in the Philippines appears to be unperformed. This study aims to determine the willingness of Muslim-Filipinos in BARMM to participate in the Takaful industry and determine the factors that influence their willingness to participate. The self-administered questionnaire was distributed to the Muslim income earners in the different provinces of BARMM. Using Ordinal Regression with a sample of 384, results showed that among the independent variables, namely: awareness, trust, personal income, perceived usefulness, perceived risk, and social influence, only the latter showed a significant influence on the dependent variable. Nonetheless, the findings showed that 86.98% of the respondents agreed that Islamic insurance should be offered in the Philippines. In addition, 72.92% of the respondents are willing to participate in Takaful, signifying a great opportunity and demand for Islamic Insurance to be offered in the country.