Does social capital, financial inclusion and risk behaviour influence trust in Takaful?

Purpose This paper aims to examine the influence of demographics, social capital, financial inclusion and risk behaviour on trust in Takaful using a household survey of 526 respondents. Design/methodology/approach The study adopts a quantitative approach using an ordered logit model to explore the relationship between demographics, social capital, financial inclusion and risk behaviour on trust in Takaful in Malaysia. Findings The findings show that gender, marital and income status and employment influence trust in Takaful. Similarly, social capital and financial inclusion positively influence trust in Takaful. At the same time, individuals have more confidence in Takaful when they use their funds rather than borrowing from friends, relatives or informal associations (such as ROSCA). Research limitations/implications The findings have several implications for policymakers in strengthening the recent policy document on “professionalism in insurance and Takaful agents” in Malaysia. Meanwhile, other implications relating to Takaful operators and future studies have been identified. Originality/value The study provides new evidence on trust in Takaful related to social capital, risk behaviour, inclusiveness and demographic status in Malaysia.