Does Social Capital, Financial Inclusion and Risk Behaviour Influence Trust in Takaful?

This paper examines the influence of demographic, social capital, financial inclusion and risk behaviour on trust in takaful using a household survey of 526 respondents. The findings show that gender, marital status, income and employment have a negative significant impact on trust in takaful. Interestingly, ROSCA plays an important role in increasing or decreasing trust in takaful. Therefore, this empirical paper provides a new understanding of why some people trust and some people doubt takaful. This new understanding should help to improve predictions of the demand for takaful in Malaysia by exploring trust in takaful.