An Assessment of Factors that Influence Takaful Patronage in Kano Metropolis

Abstract

Objective – Takaful holds significant promise in Nigeria, particularly in the Northern region, which is predominantly inhabited by Muslims. It is anticipated that this region will favor Takaful due to the lack of interest in conventional insurance. Thus, the main objective of this study is to empirically examine the factors that influence patronage of Takaful among senior secondary school teachers in Kano metropolis.

Design/Methodology – This study adopted a descriptive survey research design. Primary data were used, with a questionnaire serving as the instrument for data collection. A random sampling technique was employed to select secondary schools from each of the eight metropolitan local governments in Kano State, while a purposive sampling technique was used to capture the target respondents. The study applied Structural Equation Modelling (SEM) using SPSS version 22 and AMOS statistical software.

Results – The findings reveal that all the independent variables of the study—namely awareness, attitude, subjective norm, and perceived behavioral control—significantly influence patronage of Takaful. Research Limitations/Implications – The study recommends that, first, the National Insurance Commission (NAICOM) liaise with relevant stakeholders (i.e., Takaful companies) to develop effective promotion strategies through both online and offline media in order to improve awareness levels. Second, NAICOM and Takaful companies should develop a blueprint aimed at improving the attitudes of senior secondary school teachers in Kano toward Takaful products and services through workshops, symposiums, and seminars. Third, Takaful companies, in collaboration with the Kano State Secondary Schools Management Board (KSSSMB), should undertake awareness initiatives to encourage teachers to purchase Takaful products and services. Lastly, Takaful companies in Kano, KSSSMB, and other relevant stakeholders should advocate for incorporating Takaful into insurance policy as an alternative to conventional insurance, given its recognition as an ethical mechanism for risk management.

Novelty/Originality – This research is novel as it highlights the relevance of Takaful at the school level, an area that has been largely ignored.