Review on trust in takaful agent-client relationship

Abstract

Takaful is an insurance system that complies with Islamic regulations. Insurance and Takaful sectors together with investment banking, commercial banking, asset and wealth management, Islamic banking and other development financial institutions have been identified as financial institutions that will contribute towards achieving the Financial Services NKEA. Malaysia's financial services sector contributes to 11.6 percent of the country's real Gross Domestic Product (GDP) (Economic Transformation Programme, 2013). As an integral component of Malaysia's economy, the financial services sector has received prioritised govemment support under the National Key Economic Areas (NKEA). In the Takaful industry, sales agents or widely known as Takaful agents are responsible in marketing and selling of the Takaful plans. This study embarks to the objectives, which are to reviewing the concept of trust in the context of Takaful agent-client relationship. The methodology used in this study is based on literature review in existing articles and from quran and sunnah as sources to gather the data. Findings in this study is to review the concept of trust which based on factors contribute to the development of tru.st which is on salespersons (agent) and company (takaful operator). Besides that, findings also involve consequences of trust through customer (client) loyalty and repeating purchased.