Effective Distribution Channel of Microtakaful Products for Low-Income Group in Malaysia

• Main Authors: Isa, Mohamad Yazid, Mohamed Naim, Asmadi, Ahmad, Shahrul Nizam
• Format: Conference or Workshop Item
• Language: English
• Published: 2021
• Subjects: HB Economic Theory
• Online Access: https://repo.uum.edu.my/id/eprint/31377/1/AES%202021%20293-303.pdf; https://repo.uum.edu.my/id/eprint/31377/; https://www.aesuum.com/
• Institution: Universiti Utara Malaysia

This study tests the distribution channel of a microtakaful product in Malaysia and it also investigates the issues and challenges during the microtakaful distribution. Sixty-eight university students have been assigned to test the effective distribution channel of microtakaful product in the Malaysian market. The results show that the effective methods in distributing microtakaful product are through whatapps, followed by website and Instagram. In addition, this microtakaful product offers several advantages which are affordable, easy to understand and simple. However the overdependent on few payment methods such as debit card and credit card becomes the main drawback in the distribution channel. Takaful operator needs to widen the payment methods trough online banking or e-wallet so that clients have various payment option and this will increase the acceptance level of takaful among the low-income group in Malaysia