PERCEPTIONS OF CONVENTIONAL & ISLAMIC LIFE INSURANCE AMONG MUSLIM YOUTHS IN SINGAPORE: ROLE OF RELIGIOUS BELIEFS

Abstract

The permissibility of conventional insurance has been debated by religious scholars (ulama’) and is an especially significant issue in Singapore where Islamic insurance is not offered in the market for Muslims. Islamic insurance refers to an alternative to conventional insurance, which is based on Islamic principles and accounts for a significant portion of the Islamic finance industry.

The aim of my thesis is to understand the current perceptions of the Muslim youths in Singapore on conventional and Islamic insurance, and in particular their perceptions of life insurance products that are offered under both conventional and Islamic insurance. My research would like to investigate whether Muslim youths’ religious beliefs would affect their perceptions on conventional and Islamic life insurance as well as evaluate the extent of impact as to which religious beliefs have on Muslim youths’ purchase intentions of conventional and Islamic life insurance. My findings is that the role of religious beliefs is the most significant in influencing Muslim youths’ perception and purchase intentions of conventional and Islamic life insurance products and they also lack the necessary knowledge to understand what is permissible and is in accordance to Islam.