Factors affecting adoption of Takaful insurance in Ethiopia: Perspective of insurance market expert

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The purpose of this study was to examine the factors affecting adoption of Takaful insurance in Ethiopia in views of insurance marketing experts. In this study, descriptive and explanatory research design was used. The target population of this study consists of 64 staff members of marketing department of 17 insurance companies in Ethiopia and all of them were taken as a sample. Questionnaire was used as instrument for data collection. The questionnaire contained 64 items with 5 point Likert scale, 1 being strongly disagree and 5 being strongly agree. The questionnaire was developed based on past literature and a pilot test was conducted to check normality, reliability and validity of the scale. The dependent variable used in this research was Adoption of Takaful Insurance and the independent variables were Awareness, Attitude, Relative Advantage, Compatibility, and Regulation. The collected data was analyzed using descriptive Statistics, correlation, and multiple leaner regressions through SPSS 25. The result of this research indicates that Awareness and Relative advantage have a positive and significant impact on Adoption of Takaful Insurance. However, this research did not find any significant impact of Attitude, compatibility and regulation on adoption of Takaful. And also the research indicates that, any positive improvement on these variables will result in improvement on adoption of Takaful insurance. Therefore, this research recommends that the Ethiopian insurance companies to formulate strategies that boost Takaful insurance awareness as well as its relative advantage



Takaful, Adoption, Awareness, Attitude, Relative Advantage