Escolar Documentos
Profissional Documentos
Cultura Documentos
BY
Salman Fahad Al Ajmi
(Kuwait)
Acknowledgment
I am deeply indebted to my advisor, Ahmed Ibrahim, for his constant support. Without his help, this
work would not be possible. I would also like to thank the members of First Takaful Company who
extended their maximum cooperation for my thesis. A special thanks to the Chairman of the
company Mr. Khalil ALshami, who greatly enriched my knowledge with his exceptional insights
into Takaful business. I also thank Dr. Riyadh Alkholifi for his invaluable advice and cooperation. I
would also like to thank Mr. Mohamad Asghar the CFO of the First Takaful Company for his
sincere help and cooperation.
I would also like to thank the Faculty staff at KMBS for their tireless efforts. Dr. Rodrigo The
Academic Director for his patience and support, also I would like to thank The Manager Director
Mrs. Rose Mary and the program Director Mrs. Badia for everything they provided to me and my
colleagues during the program period.
Finally, I would like to express my deepest gratitude for the constant support, understanding and
love that I received from my mother and my wife during the past 2 years.
I dedicate this thesis to my mother and my wife. I also dedicate it to my son Mohammad and
daughters, Shua'a and Maha.
ii
Abstract
The Takaful industry in Kuwait is a relatively new business compared to its conventional
counterparts. The First Takaful Company in Kuwait was established in 1998 under the name of the
First Takaful Insurance Company. It was intended to provide insurance services that comply with
Islamic principles and Sharia law. Today there are four Takaful operators in Kuwait, and five more
companies are under formation. They will be ready to start their activities by the end of 2005.
According to MR. Khalil Alshami, Chairman of the First Takaful Company, Takaful business in
Kuwait is growing.
There is a dearth of literature on this subject matter but this paper will examine the concepts,
principles and mechanisms of the Takaful operations and how they differ from conventional
insurance. Secondary data collected, has provided solid evidence of problems that the Takaful
industry is facing, such as a lack of public awareness. A survey sample of 500 was distributed in
order to obtain a valid measurement of insurance consumers' awareness. The main focus of the
study was to measure and to analyze the awareness of Takaful insurance in Kuwait as an Islamic
alternative to commercial insurance.
A study by Cooper and Frank in 2001, confirmed that beside general ignorance of the insurance
industry itself, major customer dissatisfaction stems from poor service design and delivery.
Ignorance of customers' insurance needs, the inability to match customers' perception with
expectation, and inferior quality of services largely account for this problem. The service quality
provided by the Kuwait First Takaful Company, as the oldest operator in the country, is examined
using the Servqual model. The aim is to assess the gap between customers' expectation and their
perception using the gap analysis technique.
Keywords:
Kuwait, Takaful, Islamic Insurance, Public Awareness, Servqual Model, commercial insurance,
questionnaire, awareness, gap analysis, First Takaful Company
iii
Table of content
1.1
1.2
1.3
1.4
1.5
1.6
1.7
Chapter 1
Overview
Problem Definition
Research Objective
Research question
Research Methodology
Data Analysis Method
Thesis Structure
1
2
3
4
5
5
6
Chapter 2
2.1
2.2.1
2.2.1.1
2.2.1.2
2.2.1.3
2.2.2
2.2.3
2.2.4
2.2.5
2.2.6
2.2.6.1
2.2.6.2
2.3
2.4
2.5
2.6
2.6.1
2.6.2
2.6.3
3.1
3.2
3.3
3.4
3.4.1
3.4.1.1
3.4.1.2
3.4.1.3
3.4.1.4
3.4.1.5
3.4.1.6
3.4.1.7
3.4.2
3.4.2.1
3.4.2.2
Introduction
Insurance Industry
The Emergence of the Insurance Industry
The Concurrent Global Insurance Industry
Insurance Industry in Kuwait
Historical Development and Origins of Takaful
Basic Concepts and Fundamental Guidelines of Takaful
Comparison Between Takaful and Conventional Insurance
Takaful Models
Operational System of Takaful
General Takaful Operation
Life Takaful
The Theoretical Framework of the Study
Case Study
The First Takaful Model
Secondary Data
Statistical Report
Interview
Seed Survey
Chapter 3
Introduction
Problem Statement
Research Objective
Methodology
Testing Public Awareness
Methodological Framework
Research Questions
Hypothesis
Sampling Method
Dependent Variables
Independent Variables
Limitations
The Servqual Model
Methodological Framework
Research Questions
iv
7
7
7
8
9
10
14
14
15
16
16
16
17
19
19
21
21
22
22
24
24
24
25
25
25
29
29
30
30
31
31
31
31
32
3.4.2.3
3.4.2.4
3.4.2.5
5.1
5.2
5.2.1
5.2.2
5.2.3
5.3
5.4
The Sample
Assumptions
Limitation
Chapter 4
Introduction
Awareness Questionnaire
Variables
Main factors (dependant variables)
Questionnaire independent variables
Descriptive Analysis
Descriptive Analysis Dependent variables
Descriptive Analysis Independent variables
Analytical analysis
Mean and Standard Deviation for dependent variables( factors A,B, and C)
Mean and Standard Deviation for the awareness of the Difference and the
Publicity Factors (Factors B and C)
Inference and Statistical Analysis
Test statistics
Correlation Coefficient Between The demographic Variable and Factors
Simple Linear Regression
Service Quality Model
Tangibles
Reliability
Responsiveness
Assurance
Empathy
Chapter 5
Introduction
Conclusion
Research Problem
Research Objectives
Findings
Recommendation
Further Research
Appendix A:
Appendix B:
4.1
4.2
4.2.1
4.2.1.1
4.2.1.2
4.2.2
4.2.2.1
4.2.2.2
4.2.3
4.2.3.1
4.2.3.2
4.2.4
4.2.4.1
4.2.4.2
4.2.4.3
4.3
4.3.1
4.3.2
4.3.3
4.3.4
4.3.5
32
33
33
34
34
34
34
34
34
34
37
38
38
39
39
39
46
46
47
48
48
49
49
50
51
51
51
51
52
54
55
List of Tables
2-1
2-2
3-1
4-1
4-2
4-3
4-4
4-5
4-6
4-7
4-8
4-9
4-10
4-11
4-12
4-13
4-14
4-15
4-16
4-17
4-18
4-19
4-20
4-21
4-22
4-23
4-24
4-25
4-26
vi
9
12
31
35
35
35
35
35
36
36
36
36
37
37
38
38
38
39
40
40
41
42
43
43
45
45
46
47
47
List of Figures
1-1
2-1
2-2
2-3
2-4
2-5
2-6
2-7
3-1
3-2
3-3
4-1
4-2
4-3
4-4
4-5
vii
3
9
10
18
20
21
22
23
25
26
32
48
48
49
49
50
Chapter 1
1.1 Overview
The Takaful brand of insurance is a classic example of a consumer-driven response to need. For
generations, Muslims around the world have grown up with a mind set that insurance, especially
life insurance, is taboo because it contravenes some of the Islamic tenets. Life insurance, as sold in
then conventional way, was declared unacceptable in 1903 by some prominent Islamic scholars in
the Arab countries (Albali,2000). The search has been on for an acceptable alternative ever since,
and not until the 1970's did the debate take sufficient momentum to reach a consensus. In 1985, the
Grand Counsel of Islamic scholars in Makkah, Majma al-Fiqh, Saudi Arabia, approved the Takaful
system as an alternative form of insurance, written in compliance with Islamic Sharia (The Grand
Counsel Letter 2nd, edition,1985). The Grand Counsel approved this system as a system of cooperation and mutual help but the exact method and operation was left to Islamic scholars and
insurance practitioners to resolve, develop and implement. (Mohammad Ajmal Bhatty,2001)
In 1979 the very first Takaful company was established - the Islamic Insurance Company of Sudan,
it was followed by the Islamic Insurance Company of Saudi Arabia later in the same year. Takaful
insurance is also popular in Asian countries with sizable Muslim populations. In 1984, The
Malaysian Government passed an act legitimizing the operation of the Takaful industry within the
country. It was the only country in the world with such a law (Ramin &W.Kwon, 1996). Syarikat
Takaful Malaysia was established in 1984 by the Islamic Bank of Malaysia. This was followed by
the establishment of Takaful IBB Berhad and Takaful Tib Serndirin in Brunei in 1993,PT Syrikat
Takaful Keluarga (life) and PT Syarikat Takaful (non- life) in Indonesia both in 1994, and Syrikat
Takaful began in Singapore in 1995. Surprisingly, Takaful insurance began to operate in
Switzerland and Belgium as early as 1983 (Ramin &W.Kwon, 1996). Presently, there are more than
40 Takaful operators worldwide (Dawood Taylor, 2004) including those in certain non-Islamic
countries such as Luxembourg, UK, USA, Singapore and Australia. Most Takaful operators are
found in Arab countries (Bahrain, Saudi Arabia, Kuwait, Sudan, Tunisia, UAE), whilst Non-Arab
Muslim states, such as Brunei, Bangladesh, Indonesia, Turkey and Malaysia, also have their
respective Takaful businesses (Billah, 2003).
Companies are under formation in the Middle East (Kuwait, UAE and Egypt). Several other
Takaful companies are being contemplated in various countries such as Pakistan, Australia and
Lebanon. It is also understood that interest is shown in Takaful in South Africa, Nigeria and some
of the former states of the Soviet Union. The Takaful industry in the Middle East is underdeveloped compared to other markets such as Malaysia. The more successful companies in the
Middle East have grown at 10% p.a. whereas in Malaysia the rate of growth has been 60% p.a.
(Mohammad Ajmal Bhatty,2001).
Interest in the concepts of Islam, Takaful or co-operative insurance has grown significantly in the
Islamic world over the last ten years. But while a number of Islamic insurance companies have been
established in the Middle East, Arab North Africa and Asia, Islamic insurance still constitutes only
a tiny fraction of the total premium income in these regions (Rasaad Jamie,1996). Although specific
figures are hard to come by, it is also estimated that combined assets and contributions/premiums
attributable to these operators total around $1 billion and $500 million respectively (Dawood
Taylor, 2004). US$ 290 million pertains to the Malysia only. Malaysia is one of the largest markets
outside the Arab region for Takaful, writing 72% of the non-Arab Takaful business (The Economist
Intelligence Unit Ltd, 2005). These figures are negligible by the standards of conventional
insurance, but some industry observers are anticipating that the Takaful industry is about to pick up
speed, with growth rates mirroring those of the Islamic banking industry.
In Kuwait, the Takaful business is relatively new. The first company was incorporated In july,
2000. It was called The First Takaful Company and registered under the insurance companies and
agents law No 24 of 1961 and its subsequent amendments. Its capital is $US 30 million. The
Kuwait Finance House was one of the major underwriters, owning a stake of 30%. It started its
operation in 2001, carrying out all types of insurance, Takaful business and related activities,
including insurance and reinsurance. In the same year the Wethaq Takaful Company commenced its
operation as the second Takaful Company in Kuwait, with less than US$ 15 million of capital only.
In 2003, the Alwatania Takaful Company started its activities as the third Takaful company in
Kuwait.
10
15
20
25
30
35
In interview, with Dr. Riadh Alkholaifi The Sharia supervisory member of The First Takaful
Company, stressed that there is a broad ignorance of Takaful in both internal and external
customers. "They lack the minimum level of understanding about Takaful" he said. "Although most
of the population in Kuwait is Muslim, people are unaware of the differences between commercial
insurance and Takaful insurance." he added.
A study by Cooper and Frank in 2001 has confirmed that major customer dissatisfaction in the
insurance industry, stemming from poor service design and delivery. Ignorance of the customer's
insurance needs, the inability to match the customer's perception with expectation, and inferior
quality of services largely account for this problem. As a result, this research intends to gauge the
service quality provided by First Takaful Company and highlight the gaps, if found, using the
Servqual model.
This study seeks to provide an important analysis that offers new insight into consumer awareness
of the Takaful industry in Kuwait. The aim of this research is to analyze public awareness, within
the State of Kuwait, of Takaful insurance from three different aspects. Firstly, to examine the
insurance customers' orientation in obtaining their insurance policies, secondly, to test the insurance
customers' awareness of the difference between Takaful and commercial insurance; thirdly, to
examine the role played by Takaful companies in propagating Takaful business, from the consumer
point view.
Finally, being the initial operator in Kuwait, the First Takaful Company will be used as a case
study, using the Servqual model to measure services provided. The Servqual instrument is used to
perform gap analysis between customer expectation and customer perception in the service quality
provided by a company. The gap model contains the most commonly occurring gaps affecting
perceptions of services quality. According to Parasurman, the expectation of customers about
service quality is formed in three different ways: word of mouth, communication and need for those
services (1991). This illustrates the relationship between awareness and service quality assessment
from the customer's point of view. The researcher, Therefore believes it's necessary to measure
public awareness of Takaful insurance.
What is the insurance customers' orientation in obtaining their insurance policies? (whether
Takaful or commercial insurance)
Are insurance customers aware of the differences between Takaful insurance and
commercial insurance?
What is public opinion on the role played by Takaful companies in propagating Takaful
business?
Is there a gap between the customers' expectation and perception? (First Takaful Company
as the model)?
customer expectation for each dimension. Subtracting expectation from perception gives the value
which identifies the gaps.
one
of
this
thesis
gives
brief
overview
of
Takaful
insurance
as
an
Islamic alternative to commercial insurance. Then, the problem tackled by this research, is clearly
identified. The research objectives, methodology and data analysis method are briefly discussed.
Chapter two explains, in depth, the historical background of the Takaful industry. The world wide
insurance industry is briefly overviewed. Then, the Takaful industry in Kuwait is considered,
highlighting the mechanism employed by the First Takaful Company as the first Kuwaiti Islamic
insurance operator. Finally, the purpose of choosing the Servqual model as a tool to measure
customer satisfaction and locate gaps between customer expectation and perception is explained.
Chapter three explains the methodology used to study the Takaful industry in Kuwait.
The
secondary data used to produce the problem statement; the research objectives, the methodology,
the research questions, the hypotheses, limitations, as well as assumptions are covered.
Chapter four consists of two main parts. Part one is presents, analyzes, and discusses the analysis
and the findings of the awareness questionnaire. Part two identifies the gaps in the service provided
by the First Takaful Company. Graphical illustrations that highlight the gaps between perception
and expectation of the First Takaful Company are also included.
Chapter five concludes the study conducted on the Takaful business in Kuwait. The theoretical and
managerial implications of the study are summarized. Recommendations are also made as a result
of the study. Finally, improvements and suggested new ideas for further research are presented.
Chapter2
Literature Review
2.1 Introduction
This chapter highlights the historical background of the Takaful industry, its inception, concept and
mechanism. The world wide insurance industry is examined briefly, particularly new issues facing
the global insurance industry. The Takaful industry in Kuwait is also discussed, highlighting the
position of Takaful companies in Kuwait. The mechanism employed by the First Takaful Company
is also presented.
This chapter also explains why the Servqual model is chosen to establish the extent of customer
satisfaction and to reveal gaps in expectations and perceptions within the insurance industry.
Finally, a similar case study from Greece and Kenya is presented.
accident insurance emerged in the UK. During the seventeenth century, there were no insurance
companies as we know them today. The practice was for individuals, who became known as
"underwriters," to guarantee commercial ventures on a personal basis. 'Lloyds Coffee House' in
Tower Street, London, owned by Mr. Edward Lloyd, proved to be a favorite venue for them to
conduct their business informally over cups of coffee. Mr. Lloyd promoted the trend towards
business by providing his customers with pen, ink, paper and shipping information. Lloyds Coffee
House thus became recognized as the place for persons wanting insurance cover to find
underwriters. (Greene, M. R. 1962)
In the United States the value of the insurance industry in 2004 was US$ 2,838 billion, of which
US$ 1,630 billion was attributable to life business and US$ 1,208 billion to non-life business. The
worldwide market approximately touches US$1.061 trillion for insurance and reinsurance. (Figure
2-1) shows the overall value of the business itself. (Oxford Metrica, 2004)
Global general
reinsures
17%
Domestic general
insurance
22%
$176.8
$ 228.6 b
$365.6 b
$ 287.6 b
Global general
insurers
34%
Life insurance
27%
Demotic general
reinsurance
0%
Fig 2-1: world wide value of insurance and re-insurance business. (oxford Metrica,2004).
National Co.
Foreign Co.
Kuwait Insurrance Co
Gardian Ins Co
Qatar Ins Co
Gardian ins co
American Life Ins CO.
Oriantal Ins CO.
New Indian ins. Co.
Qatar Ins Co
Saudi Arabian Ins Co.
National Ins Co of Egypt
Lebano Suisse Ins Co.
lebanese Ins Co.
Al-ittihad al_watania Ins Co.
arabian ins Co.
Warba Ins Co.
alwatania takaful Co.
wethag takafal Co.
first takaful Co.
bahrain insurance Co.
Warba Medical Ins Co.
Al-Ahliah Ins Co.
Gulf insurance Co.
Kuwait Insurrance Co
0
10
15
20
25
30
35
IN million K.D
Development Bank was the starting point of the Islamic Banking movement. H.E. Prince
Mohammed-al-Faisal-Al-Saud of Saudi Arabia took the initiative for the establishment of a number
of Islamic Banks. In one such initiative, in February 1976, he held discussions with H.E. Gafar
Nimeiry, the President of the Democratic Republic of Sudan) and asked for permission to establish
an Islamic Bank to be operated in Sudan, (Alkholifi). Executive and legislative authorities in the
Sudanese Government at all levels encouraged the proposal. In August 1977, Faisal Islamic Bank
was registered as a public limited company under the Sudanese Company Act-1925.
When the Faisal Islamic Bank was established, the bank authorities initiated studies for the
inception of a co-operative insurance company. In this respect, the opinion of the Bank's Sharia
Supervisory Board (SSB) was sought. The SSB studied the scheme at the first meeting. Studies
continued and several steps followed. Then Faisal Islamic Bank authorities prepared the
Memorandum of Association and the Article of Association. The SSB ensured that the scheme was
sound from a Sharia point of view as well as feasible from a practical point of view. Therefore, the
Islamic Insurance Company Ltd. Sudan was incorporated as a Sudanese Public Company, under the
Companies Act 1925, in January, 1979. This was the first insurance company established in the
world to transact business according to the Islamic Sharia. The Faisal Islamic Bank has subscribed
to the entire authorized capital of this company. The company enjoys numerous concessions and
exemptions. All its assets and profits are exempt from all taxation types. Furthermore, the assets of
the company are not subject to confiscation or nationalization etc. The Company is also exempt
from the application of acts regulating insurance in Sudan (Ali, K., 2000).
In the last decade there has been a considerable increase in the number of Takaful companies all
over the world, especially in Islamic countries. The major Takaful companies exist in the following
regions:
A. Gulf Cooperation Council
In the Gulf Cooperation Council (GCC) countries, Bahrain was the first to establish a Takaful
company, Takaful International. It was established as a composite Takaful company in 1999, but
only started writing family Takaful business in the middle of the year 2000. In Saudi Arabia, there
are 12 Takaful operators, some of which are incorporated by conventional banks as window-type
Takaful operators. In Qatar, out of four insurers, two are authorized to write Takaful business and
of the two, one is only authorized to write non-family Takaful business. In UAE, four Takaful
companies are operating within the market. There are currently no Takaful players in Oman.
Looking at the potential of the market, it will be just a matter of time before there are new entrants.
11
US$m
Takaful
Life
General Total
Total Share
Takaful Takaful Takaful Market of
Market
Saudi
Arabia
1.3
60
61
781
* 8%
UAE
1.1
12
13
815
2%
Qatar
153
4%
Bahrain -
134
4%
Sudan
0.4
27
27
33
83%
Jordan
0.3
6.3
141
5%
Total
3.1
116
119
2,057
6%
B. Asian Region
According to Ali M., the Islamic Insurance Company was established in Malaysia as a private
limited company, (in accordance with companies Act 1965) in November, 1984 and it started its
operation in August 1985 as a composite insurance company (1991). This was made possible by the
Malaysian Government who, in 1982, took a positive step by forming a special body known as the
"Task Force" for the study of the establishment of Islamic Insurance in Malaysia. This task force
was formed on the basis of the recommendations of the National Steering Committee on Islamic
Banking, which highlighted, in its report to the Malaysian Government, the need for Islamic
Insurance. The Committee deemed it necessary, to cater for the insurance requirements of the
Islamic Bank which was about to be launched. Members of the task force were drawn from
personalities and groups representing religious scholars, legal experts, economists and insurance
practitioners. The members of the task force visited a number of Islamic countries and also had
discussions with three Islamic Insurance Companies already established or about to be established.
Finally, in its report to the Government, the task force suggested that an Islamic Insurance company
should be established in Malaysia as soon as possible. The Malaysian Government then published
legislation entitled 'the Takaful Act', which regulates Islamic Insurance (Takaful) in Malaysia. It
may be of interest to note that, in Malaysia, the Islamic Insurance Company (known as the Syarikat
Takaful Malaysia) is practically a subsidiary of Bank Islamic Malaysia Berhad, which owns 51% of
the paid up capital of the Takaful Company. The balance, 49% of the shares, is owned by the
various state religious councils and state religious foundations within Malaysia (Bank Negara
Malaysia).
12
The Takaful market in the Asian region, particularly Malaysia, registered credible growth rates in
the last 5 years. Malaysia, with two Takaful operators (one which started writing business in 1985,
and the other in 1994) posted above 50% per annum family Takaful new business growth over the
past 5 years. The business consists of around 60% mortgage, 23% individual and 17% group
business. Four Total Family Takaful new business contributions for the year 2000 were US$73
million, or 15% of the country's life insurance industry premium for the said year. Considering that
Malaysia has about 12 million Muslims, it is not surprising to learn that many insurers in the
country have been interested in writing Takaful business and have approached Bank Negara (the
Regulatory Authority) for permission to write the business on a window type operation basis. In
2004 the Takaful industry increased its aggregate contribution income by 10.8% to M$1.1bn
(US$290m) and its assets by 13.5% to M$5bn. (The Economist Intelligence Unit Ltd, 2005).
Singapore and Indonesia, Bangladesh and Pakistan have also started Takaful business.
C. Takaful In Kuwait
Up until 1998, there was no specific legislation in Kuwait regulating Takaful insurance. because the
majority of Kuwaitis are Muslims, the government here realized that there was an urgent need to
devise a comprehensive system to solve the economic problems facing the Muslim community. The
first Islamic Bank was set up in 1987 and subsequently, in February 1998, the Ministry of
Commerce granted the license for the First Takaful Insurance Company. The First Takaful
Company was incorporated with a paid up capital of 30 million dollars. It has eight major share
holders including the Kuwait Finance House, The International Investor and International Murabaha
(Kuwait Today Official Newspaper, 1998). It started operation in March 2001 with the intention of
offering a full range of Takaful insurance products, in compliance with Sharia principles. By the
end of the year the Wethaq Takaful Company started its operation, followed by the Alwatania
Takaful Company two years later. According statistical report for insurance companies in 2004, the
value of Takaful business in Kuwait is 40 million dollars, representing 9% of the total value of the
insurance industry in Kuwait (The Statistical Report For Insurance Companies, 2004). Fire
insurance constitutes 5%, marine 7%, general accident 20%,medical 4% and life insurance7%.
Based on statistical reports, Takaful premiums total 14.5 million K.D., up from 10,089,785 million
K.D in 2003. Commercial insurance companies made 99.5 million K.D. in 2004, up from 62.2
million K.D. in 2003.
13
Average growth =Current year direct premiums last year premiums / last year premiums (Adel
Munieer, 1997)
The equation shows that the growth rate of the takaful industry in Kuwait is 34.6%, comparing to
62.53% growth rate of non takaful companies.
Al-Mudharabah - This literally means 'profit sharing'. The Takaful operator accepts and
invests the takaful contributions (premiums) received from Takaful participants. The contract
specifies how the profits to be shared between the participants and the Takaful operator. For
example, the ratio may be on a 60:40 basis.
ii)
AI-Takaful this means 'joint guarantee', whereby the participants jointly guarantee
amongst themselves. Any member faced with a calamity will be financially compensated
from funds contributed by the participants.
iii)
Tabarru - this refers to the element of 'donation', Each participant agrees to relinquish a
portion of the Takaful contribution to a common fund that is used to pay a member that
suffers a loss.
Omar Fisher and Dawood Taylor (2000) noted that when drafting the framework of Takaful, that
Muslim jurists must be aware of certain fundamental guidelines. The guidelines are outlined as
follows:
i)
the practice must adhere strictly to the Islamic principles of business or commerce;
ii)
business must be conducted openly in accordance with utmost good faith, honesty, full
disclosure, truthfulness and fairness in all aspects;
iii)
co-operative risk sharing and mutual assistance amongst the participants in the group; and
iv)
awareness amongst the group members that they are facing similar risks and are willing to
contribute to any unfortunate member.
Compensation to an unfortunate member and group responsibility is not only accepted but
encouraged in Islam. Although the models operation of Takaful must comply with the Sharia, the
basic elements of a contract as well as insurance principles (utmost good faith, proximate cause,
indemnity and insurable interest) also apply.
According to Muhammad Nejatullah Siddiqi, there are three elements present in conventional
insurance that do not conform to the requirements of the Sharia (1985):
i) Al-Gharar
This refers to 'unknown' or 'uncertain' factors in a conventional insurance contract. In
conventional insurance policyholders are not informed on how profits are distributed and in what
the funds are invested in. In a Takaful operation, which is based on the Mudharabah concept, the
distribution of profits to the operators and the participants are clearly outlined in the contract.
ii) Al-Maisir
This is the 'gambling' element and is said to derive from the 'Gharar' element. In conventional
insurance the policyholder stands to lose all the premiums paid if the risk does not occur. On the
other hand, he stands to get more should a misfortune happen whilst paying a small amount
premium. In Takaful, even though the risk does not occur, the participant is entitled to get back
the contributions that he has paid. Should the risk occur, he will be paid from his premium fund
plus the pool of funds from the 'donation' of other participants.
iii) Riba
This refers to the interest factor present in the investment activities of conventional insurance
companies. The policy loan in conventional life insurance is in fact a Riba based transaction.
Islam prohibits any investment activities which are interest based in alcoholic beverages and
non-Halal products.
The contributions paid by the participants are wholly for Tabarru (donation) to
unfortunate members. The Al-Sheikhan Takaful Company in Sudan and SOCSO in Malaysia are
examples of this kind of business. (Billah, 2003)
15
B. Al-Mudharabah Model
This refers to the co-operative risk sharing where participants and operators share in the
distribution profit. (Billah, 2003)
C. Al-Wakala Model
In this model, the co-operative risk sharing occurs among participants with a Takaful operator,
whereby a fee is agreed to be paid to the operators for the services rendered. The operator shall
not participate in the underwriting results. (Billah, 2003).
16
If a participant survives the duration of the policy he receives the whole amount he has contributed
to the PA accounts, inclusive of his portion of profits from the investment activities of this fund. A
participant who decides to surrender his policy is entitled to receive the installment payments and
any investment profit from his PA account.
17
Service
Service Quality
Quality Model
Model
Word-of-mouth
communication
Personal needs
Past experience
Expected service
Gap 5
Perceived service
CUSTOMER
Service delivery
PROVIDER
Gap 4
Gap 3
External
communications
to clients
Service quality
specifications
Gap 1
Gap 2
Management perceptions
of client expectations
More specifically, it identifies 5 gaps where there may be a shortfall between expectation of service
level and perception of actual service delivery.
Gap 1: Gap between consumer expectations and management perceptions
Gap 2: Gap between management perceptions and service quality specification
Gap 3: Gap between service quality specifications and service delivery
Gap 4: Gap between service delivery and external communications
Gap 5: Gap between perceived service and expected service.
The following equation is used to calculate the GAPs in Parasurman model:
PERCEPTION EXPECTATION = GAP
Since 1985, when The Servqual model was first published by its innovators Parasuraman, Zeithaml
and Berry, it has been further developed, promulgated and promoted through a series of
publications in the years 1985, 1986, 1988, 1990, 1991, 1993 and 1994. The ABI/Inform database
Global edition, (September 1994) reports that service quality has been a keyword in some 1,447
articles published in the period from January 1992 to April 1994. These publications incorporate
both theoretical discussions and applications of SERVQUAL in a variety of industrial, commercial
and not profit settings. It is an instrument for assessing customer perception of service quality in
service and retailing organizations (Parasuraman et al., 1988). The research of 'measuring quality'
has been developed in the manufacturing industry. The Japanese philosophy on zero defect concept,
defined as doing it right the first time. Crospy defines quality as conformity to needs (1979).
18
The absence of tangible evidence results in service quality being fundamentally measured through
customer perception.
According to Taylor, Parasuraman failed to define perception in an attitudinal term 1994). Zimbler
criticises the Servqual model as it costs more to improve service quality than the marginal revenue
it would achieve (1983).
Although SERVQUAL has been extensively criticized on both theoretical and operational grounds
(Buttle, 1996), until a better but equally simple model emerges, SERVQUAL will predominate as a
service quality measure.
Shareholders
Participant
In the First Takaful Company there are five classes of insurance: Life, Marine, General Insurance,
Motor Vehicle and Fire insurance. The premium surplus will be distributed to the class that is
making surplus net of claims in the same category. Participants will be given the priority for
distribution as long as their category is making a surplus. If one of the above classes incurs a deficit,
the loan will be given from the shareholders as a loan with no interest and will then be returned as
soon as that class is making profit. The loan will be paid back to the shareholders first, before any
distribution of surplus to relevant class policyholders.
In 2005, the First Takaful Company distributed 22.5% percent to life insurance policy holders, as
that class had achieved a surplus of 368,679 K.D., and that was after paying the shareholders loan
of 189,000 thousand K.D., whereas the other classes had incurred losses or made a marginal surplus
that was not worth distribution according to Mr. Alshami. This amount will be accumulated to be
distributed next year if the surplus increases to a level that allows for distribution.
The First Takaful Company work process is divided into life and non- life insurance operations:
A. Takaful Life insurance:
The First Takaful Company is not like other models of insurance which insure people against death,
where the company pays a death benefit to the heir of any insured person who dies prematurely. In
context, life insurance in the First Takaful Company only insures the policyholder against risk of
death and the financial obligation remaining after death. This plan is called Credit Risk Insurance.
For example, if a policyholder of credit insurance dies while he owes a mortgage, loan or any other
20
type of credit, the company will pay off the loan. Also, in the case of any type of unpaid loan under
certain qualified circumstances the credit insurance covers the policy holder even if he is still living
(Mr. ALshami). This type of insurance is the most profitable for the First Takaful Company as it
constitutes 7% of the total Kuwait insurance market. Figure 2-5 below shows the direct premium of
life insurance in Kuwait.
Al-Ahliah
Warba
bahrain first takaful American
Ins Co. Medical Ins insurance
Co.
Life Ins CO.
Co.
Co.
operation in the Kuwaiti market. The annual report conducted by the Ministry of Commerce in
Kuwait showed the Takaful companies in Kuwait have the lowest premium among their
commercial peers as illustrated in figure 2-6.
35
30
25
20
Series1
15
10
0
Gulf insurance
Kuwait
Al-Ahliah Ins
Co.
Insurrance Co
Co.
Warba
Medical Ins
Co.
first takaful
Co.
wethag takafal
bahrain
Warba Ins Co.
Co.
insurance Co.
alwatania
takaful Co.
Figure 2-6: Premium for the insurance companies in the state of Kuwait, 2004
2.6.2 Interview
An interview with DR. Riadh Alkholaifi (The Sharia supervisory member of the first Takaful
Company) stressed that there is a broad ignorance about Takaful in both internal and external
customers. "They lack the minimum level of understanding about Takaful" he said.
17%
30%
1. Yes
53%
2. I do not know
3- no there is no difference
23
CHAPTER 3
3.1 Introduction
This chapter highlights the methodology used to study the Takaful industry in Kuwait. The
secondary data used to produce the problem statement; the research objectives, the methodology,
the research questions, the hypotheses, as well as the limitations are also covered.
questionnaire is the main survey in this research, while the Servqual model is the secondary survey
conducted on the company's customers.
3.4 Methodology
This study was conducted in two phases. Firstly, a survey based questionnaire was chosen as being
appropriate to test public awareness of Takaful in Kuwait. Secondly a Servqual model
questionnaire, derived from Parasurman et. al 1985, was chosen to analyze the gap between
customer expectation and perception of the service provided by the First Takaful Company.
Research
philosophy
Interpretivism
Inductive
Experiment
Research
approaches
Survey
Sampling
Secondary data
Observation
Interviews
Questionnaires
Cross
Sectional
Case
Study
Ground
Theory
Longitudinal
Realism
Time
horizons
Ethnography
Action
research
Research
strategies
Deductive
Positivism
Data
collection
methods
Figure 3-1: The research onion process 'onion' (Mark Saunders et .al, 2003)
The researcher selected the interpretivism philosophy for conducting this study because "The social
world of business and management is too complex to lend itself to theorizing by definite laws in the
same way as physical science" (Mark Saunders et .al, 2003).
This research is studying a socially related subject where people's behavior is changing over time
and where "circumstances of today may not apply in three months' time"(Mark Saunders et .al,
25
2003). Interpretivists deny that humans can be studied using the same philosophical base used in
studying physical objects or other animals.
Starting from specific observations to broader generalizations or theories (it is feature-detecting), this
research was built on an inductive approach. The main reason for selecting an inductive approach
goes back to starting from observations generated from secondary data (interviews with specialists)
to generalizations on these observations. Figure 3-2 shows the path the researcher has adopted.
Example
Inductive
Theory
Conformation
of
the
observation and endorsement
of tested Hypothesis.
Tentative Hypothesis
Pattern
Observation
The research strategy is based on survey strategy because "it allows the collection of a large amount
of data from a sizable population in a highly economical way, often obtained by using a
questionnaire"(Mark Saunders et .al, 2003). Also the research strategy should give more control
over the research process. The time horizon was a cross- sectional study due to the time constraints
on this thesis. The research was performed over a very short period of time, began in July, 2005,
handed over at the end of October, 2005. Much time was spent however, in designing and piloting
the questionnaire, analyzing the results, even with the aid of an appropriate computer package.
There are two major types of survey research (Kerlinger, 1986). Both, exploratory and explanatory
survey research was used in this thesis. Being one of the two types of exploratory approaches,
descriptive method was applied as indispensable in the early stages of studying a phenomenon
(Dubin, 1978). The objective of the descriptive approach, is to become more familiar with the topic
and to describe the level of people's awareness regardless of any statistical treatment. On the other
hand, explanatory survey deals with variables and the correlation between them, as hypotheses were
explained and tested.
The data collection method of this thesis was quantitative methodology. It was chosen for this study
because of its analytical approach to data generated by the questionnaire. The quantitative research
26
allows us to determine the relationship between one thing (an independent variable) and another (a
dependent or outcome variable) within a population. Quantitative research designs are either
descriptive (subjects usually measured once) or experimental (subjects measured before and after a
treatment). A descriptive study establishes only associations between variables, while, an
experiment establishes causality.
The survey contains three dependent variables: Behavior, Attribute and Opinion, as mentioned in
Mark Saunders et .al, 2003, these were used to develop a questionnaire of 25 questions examining
public awareness of the Takaful business in Kuwait. The developed questionnaire includes three
factors:
Factor A: consumers' orientation in obtaining their insurance (whether Islamic or non-Islamic).
Factor B: awareness of consumers about the difference between Takaful insurance and
commercial insurance,
Factor C: public opinion regarding the propagation of Takaful business by Takaful companies.
The questionnaire is completed as a single closed ended, ranking questions and matrix structure
questionnaire. The aim is to test consumer awareness of Takaful from three different aspects. Under
the main objective, the questionnaire is grouped into three hidden categories, by which the
respondent's awareness is studied and dissected thoroughly. These three dimensions are regrouped
during the data analysis.
The first question is an optional question asking about the respondent's name. Question 2-8 deal
with the 'attributable variables' of the questionnaire, asking about age, gender, nationality, martial
statues, level of education, occupation and average disposable income. The ninth question is about
the average annual spending on insurance. Questions from six to nine are constructed as single
closed ended questions. Questions from numbers 10 to 14 are the 'behavior variables' of the
questionnaire; 10&11 are constructed in a matrix form. Question number 10 is asking about the
method of covering the insurance, whether by the individual or his employer. Question number 11
asks about the type of insurance used by the insured, whether Takaful or non Takaful. Questions 12
to 14 are single closed questions asking about the past experience of the respondents in obtaining
their insurance policies from insurance companies. Question 12 deals with where the respondent
chooses insure (main office, branches, or agents), the method of selecting the insurance company
(self convenience or influenced by agents), and the respondent's preference in insuring his
properties (Islamic or non Islamic). Questions 18, 19, 20, and 23 are testing the opinion of the
respondents about the role of Takaful companies in expanding Takaful business in Kuwait.
27
The study involves analysis of data collected from a sample of 300 insurance customers to address
the hypothesis proposed in this thesis. The intention of the hypothesis is to test public awareness
based on demographic differences. Public awareness was divided into three factors. The first factor
shows
awareness of the differences between Takaful and commercial insurance. Finally, the third factor is
tests customer opinion on the role of Takaful companies in propagating Takaful business.
Factor (A) is a descriptive analysis portraying an accurate profile of the consumers orientation in
choosing his insurance company, based on demographic variables. The frequency and percentage of
questions 10, 11, 13, 14, 15, and 25 indicates the consumers orientation in choosing his insurance
company. No statistical treatment was used in this factor, as it is intended to describe the orientation
of the consumer only in descriptive analysis. Secondly, factor (B) is tackling the awareness of the
differences between Takaful insurance and commercial insurance. The intention of this factor is to
test the public knowledge of the Takaful business. It was grouped in single factor as it had similar
scale, except for questions 16, and 21 displayed as standalone questions due to the different scale.
The third factor is factor (C) which tests the publicity of Takaful insurance undertaken by Takaful
companies. Question numbers 12, 19, 20, 23, and 24 are grouped under this factor, however
question number 12 has a unique scale different from other questions related to this factor.
The second and third factor are grouped together and statistically treated in an experimental
method. The analysis of theses two factors consists of two parts. The first part is to show the
frequency, then the mean and standard deviation for factors B and C. The second part of the
analysis is the inference and statistical differences treated using the SPSS computing method to test
the hypothesis of this study. The hypothesis is tested for factor B & C against the gender and
nationality variables with T-tests at 0.05 significance level. Whenever the P-value is less than 0.05
it means there is a significant difference between the demographic variables in the tested factor.
One way ANOVA was used to examine the age, marital status, education variable, current job,
income per month, and average insurance expenses per year with factors B & C. Then the
correlation coefficient between the demographic variables and Factors B & C respectively, is tested
using Spearman's coefficient. Finally, simple linear regression is used to study the effect of the
independent variable (demographic variable) on the dependent variable (factors). The independent
variables that have significant effect on the dependent variables (P-value is less than 0.05) were
tabulated for factor B & C and the results are shown in the next chapter.
28
3.4.1.3 HYPOTHESIS
The intention of this research is to examine public awareness of the Takaful industry in Kuwait. The
hypothesis was formulated to test the relationship between the categorical variables as independent
variables (age, gender, , nationality martial status, disposable income, level of education, average
spending on insurance) against the measured variables as dependent variables (the awareness of the
difference between the Takaful and commercial insurance, and consumer opinion of the role of the
Takaful companies in publicizing the Takaful business); And also to establish whether the change in
the demographic variables might affect the result of the measurement and the significance of the
difference itself. In order to test these relationships, sixteen hypotheses are formulated tackling all
categorical variables against measured variables resulting in the following proposed hypotheses:
H1: Awareness of the difference between Takaful insurance and commercial insurance differs
between males and females.
H2: Opinion on the role of Takaful companies in propagating and publicizing Takaful business
differs between males and females.
H3: Awareness of the difference between Takaful insurance and commercial insurance differs
between Kuwaitis and non-Kuwaitis.
H4: Opinion on the role of Takaful companies in propagating and publicizing Takaful business
differs between Kuwaitis and non-Kuwaitis.
H5: Awareness of the difference between Takaful insurance and commercial insurance differs
based on age.
H6: Opinion on the role of Takaful companies in propagating and publicizing Takaful business
differs based on age.
H7: Awareness of the difference between Takaful insurance and commercial insurance differs
based on the marital status
H8: Opinion on the role of Takaful companies in propagating and publicizing Takaful business
differs based on the marital status
H9: Awareness of the difference between Takaful insurance and commercial insurance varies
based on different educational levels
H10:. Opinion on the role of Takaful companies in propagating and publicizing Takaful business
varies based on different educational levels
H11: Awareness of the difference between Takaful insurance and commercial insurance differs
based on job levels.
29
H12: Public opinion on the role of Takaful companies in propagating and publicizing Takaful
business differs based on job level
H13: Awareness of the difference between Takaful insurance and commercial insurance differs
based on income per month
H14: Public opinion on the role of Takaful companies in propagating and publicizing Takaful
business differs based on income per month
H15: Public awareness of the difference between Takaful insurance and commercial insurance
differs based on insurance expenses per year.
H16 : Public opinion on the role of Takaful companies in propagating and publicizing Takaful
business differs based on insurance expenses per year.
30
3.4.1.7 LIMITATION
The main limitation of the study was the sample. Even though the sample was collected from 13
different sites, the summer period limited the ability to generalize the findings. This can be traced to
the fact that many people leave Kuwait for holidays during the summer. An additional period of
time would assist in strengthening the results of the study and the ability to generalize the findings.
Another limitation was the lack of references about Takaful business. Very limited resources were
found in the libraries due to the recent emergence of this type of business. Also there is little
evidence of past research on Takaful business in Kuwait on which to build on.
Dimension
Definition
Items in scale
Reliability
Assurance
Tangibles
Empathy
This type of survey based on SERVQUAL requires respondents to score on a Likert scale, two
different scores on all of the attributes relating to each dimension. The two different scores relate
firstly to what the respondent would expect from an excellent service provider and secondly scoring
on their perception of the service delivery from the First Takaful Company. The difference between
the expectation and perception scores, constitute a quantified measure of service quality.
For the purpose of our survey, the five dimension attributes are adapted to reflect the Takaful
insurance sector. Parasuraman et al comment that, items under each of the dimensions can be
suitably reworded and augmented to make them more germane to the context in which the
instrument is to be used (1988).
A written questionnaire was considered an appropriate data collection instrument because it
permitted a large number of people to be surveyed in a brief period of time. Using a seven point
Likert type scale with designations of strongly disagree to strongly agree, the SERVQUAL
questionnaire paired 22 expectations of excellent Takaful service in the first section, with 22
perceptions of service experienced at the First Takaful Company in the second section. Analyzing
both sheets together results in gap identification.
Gap 5
Customer Expected service
Gap 5
Customer Perceived service
32
for the questionnaire is 63% by Parasurman. The questionnaire Validity was by Parasurman
(Parasuraman, Zeithaml and Berry, 1988).
To confirm good translation, the questionnaire was given to a professional translator to translate the
questionnaire to Arabic. The result came out to match the researcher initial translation.
3.4.2.4 Assumption
A study by Cooper and Frank, in 2001, has confirmed that beside ignorance of the business, major
customer dissatisfaction in the insurance industry stems from poor service design and delivery.
Ignorance in customers' insurance needs, the inability to match customers' perception with
expectation, and inferior quality of services largely account for this problem. As a result it is
assumed that the service quality provided by Takaful companies in Kuwait has a significant impact
on the lack of awareness among insurance customers. The First Takaful company was selected to
measure the Gaps, if found, using the Servqual model.
3.4.2.5 Limitation
Due to the nature of the insurance business, the customers were not cooperating in completing the
survey. Customers often only visit insurance branches in case of accident. Therefore, aggrieved
customers were reluctant to comply.
33
Chapter 4
4.1 Introduction
This chapter consists of two main parts. The first part is presenting, analyzing and discussing the
analysis and the findings of the awareness questionnaire. The other part of this chapter is identifying
the gaps in the service provided by the First Takaful Company. Graphical illustration that highlights
the gaps between the perception and expectation of the First Takaful Company are shown.
34
pay it myself
Frequency
300
Percent
100.0
Missing
Total
Takaful insurance
Traditional Insurance
Total
System
Frequency
99
195
294
6
300
Percent
33.7
66.3
100.0
Takaful insurance
Traditional Insurance
Frequency
Percent
18
6.0
264
88.0
You select by
yourself the insurance
company
18
6.0
300
100.0
Missing
Total
Islamic Insurance
Traditional insurance
either
Total
System
Frequency
114
45
120
279
21
300
Percent
40.9
16.1
43.0
100.0
Islamic Insurance
Traditional insurance
either
Missing
Total
Religious
Cost of the
insurance policy
Easiness of
recovering damages
The nearest
company to my place
Total
System
Frequency
123
Percent
41.4
48
16.2
2.0
120
40.4
297
3
300
100.0
35
Religious
Cost of the insurance
policy
Easiness of
recovering damages
The nearest company
to my place
Q25: Are you going to renew your contract with the Takaful insurance companies?
Table 4-6: Q25
Valid
Yes
No
No difference
Frequency
135
33
Percent
45.0
11.0
132
44.0
300
100.0
Total
Yes
No
No difference
Valid
No difference
Takaful insurance is bette
Traditional insurance is
better
I do not know
Total
Frequency
159
99
Percent
53.0
33.0
27
9.0
15
300
5.0
100.0
No difference
Takaful insurance
is bette
Traditional
insurance is better
I do not know
Q21: As a client of a Takaful insurance company, when do you expect to get back part or full of
your insurance?
Table 4-8: Q21
Valid
Frequency
Percent
270
90.0
1.0
27
300
9.0
100.0
in case of accident
or damages
in case the company
made surplus
I do not know
Total
in case of accident
or damages
in case the
company made
surplus
I do not know
Questions
I disagree
I do not know
Frequency
Percent
Frequency
Percent
Frequency
Percent
75
25.0%
135
45.0%
90
30.0%
21
7.0%
1.0%
276
92.0%
138
46.0%
36
12.0%
126
42.0%
36
I agree
I disagree
I do not know
Questions
Frequency
Percent
Frequency
Percent
Frequency
Percent
21
7.0%
186
62.0%
93
31.0%
90
30.0%
63
21.0%
147
49.0%
171
57.0%
57
19.0%
72
24.0%
33
11.0%
102
34.0%
165
55.0%
Less than 21
21 - 29
30 - 39
40 - 49
50 - 59
60 And more
Total
Frequency
6
51
99
78
33
33
300
Percent
2.0
17.0
33.0
26.0
11.0
11.0
100.0
Less than 21
21 - 29
30 - 39
40 - 49
50 - 59
60 And more
The frequency of the sample shows 261 males versus 36 females representing 87.9% and 12.1%
respectively. 252 participants are Kuwaitis, whereas 42 non Kuwaitis are covered by the sample.
The marital status shows that 21 participants are single, 261 married and 12 others, divorced,
widowed, or separated, etc.
37
Out of the surveyed sample, 201 participant are government employees representing 68 % of the
sample. The remaining participants work in the private sector, merchant, or are retired, constituting
14%, 9%, and 8% respectively. Average disposable income per-month for 33 respondents falls
below 400KD, while 81 earn between 400kd and 1000kd; 114 earn between 1000kd and 1500kd,
and 72 receive between 1500kd and 3000 kd/month.
In terms of education, 13 percent of the respondents are illiterate, 24 percent hold high school
degrees, 15 percent finished two years of college, and the remaining 48 percent are university
graduates as (illustrated in Table 4-12).
Table 4-12: Sample distribution according to level of education.
Valid
Frequency
39
Percent
13.0
High School
72
24.0
High School
45
15.0
Graduate
144
48.0
Graduate
Total
300
100.0
illiterate
literate
While 150 participants of the survey spend less than 150 KD per year for their insurance coverage,
96 spend between 100 and 250 KD, and 48 spend between 250 and 1000. The remaining 6
participants spend from1000 KD to 3000 KD per year.
Table 4-13: Sample distribution according to yearly spending on insurance.
Valid
Frequency
150
96
48
6
300
Percent
50.0
32.0
16.0
2.0
100.0
Mean and Standard Deviation for the Orientation Factor - (Factor A):
Table 4-14: Mean and standard deviation for the orientation factor (Factor A)
Questions
Mean
300
294
300
1
1.66
2.94
38
Std.
Deviation
0.001
0.473
0.545
279
297
2.02
2.41
0.917
1.373
300
1.99
0.945
From table 4-14, Q10 indicates that all respondents are self insured, which means that they
personally choose their desired insurance company. The mean value of question Q11 is pointing to
commercial insurance as the most used insurance within this sample. Also, the mean value of Q14
shows that most of the clients choose commercial insurance. The first priority, (Q15), for most of
the sample indicates the cost of an insurance policy as per the mean value. Finally, question 25's
mean value shows that customers will not renew their contract with Takaful insurance companies
based on the questionnaire scale.
4.2.3.2 Mean and Standard Deviation for the awareness of the Difference and
the Publicity Factors (Factors B and C)
Table 4-15: Mean and standard deviation for factors B&C
Factors
Factor B
Factor C
N
300
300
Mean
2.36
2.31
Std. Deviation
0.610
0.629
The results of the answers pertaining to factor B group together to indicate a mean value 2.36,
which means the participants disagree with the factor based on the scale of the questionnaire. That
means the respondents don't know the difference between Takaful and commercial insurance.
Similarly, a mean value of 2.31 for Factor C indicates that the participants disagree with the factor
based on the scale. In other words, participants believe that Takaful companies are not undertaking
appropriate measures to publicize Takaful business.
39
Factors
Factor B
Factor C
Sex
Mean
Std.
Deviation
T-value
P-value
Result
Male
261
2.32
0.617
-3.903
0.000
Sig
Female
36
2.67
0.478
Male
261
2.28
0.639
-2.771
0.006
Female
36
2.58
0.500
Sig
From table 4-16 above, it's clear that the p-value of the awareness of the Difference and Publicity of
Takaful Factors are equal to zero, which is less than 0.05. This means that there is a statistical
difference between male and female awareness of the difference between Takaful insurance and
commercial insurance. This difference is in favor of the male sample. The mean value for the male
sample indicates that there is no difference between Takaful insurance and commercial insurance.
However, the mean value for the female sample indicates that they do not know if there is any
difference between the Takaful insurance and commercial insurance.
The results for factor C reveal that there is a statistical difference between male and female opinion
on the role of Takaful insurance companies in propagating the business properly. The male sample
believes there are shortcomings in the role of Takaful companies, whereas the female answer is
"don't know" based on the scale.
Factors
Factor B
Factor C
Nationality
Mean
Std.
Deviation
T-value P-value
Kuwaiti
252
2.30
0.614
-5.178
0.000
Non-Kuwaiti
42
2.71
0.457
Kuwaiti
252
2.32
0.659
1.020
0.309
Non-Kuwaiti
42
2.21
0.415
Result
Sig
Not
Sig
From table 4-17, it's clear that the p-value of Factor B is less than 0.05. This means there is a
statistical difference between the Kuwaiti and non-Kuwaiti awareness about Factor B. This
difference is in favor of Kuwaitis whose mean value indicates that there is no difference between
40
the Takaful insurance companies and the commercial ones. Whereas the non-Kuwaitis mean value
indicates that they dont know if there is a difference between the two.
On the other hand, the p-value of Factor C is equal 0.309 which is more than 0.05 which means
there is no statistical difference between the Kuwaiti and non-Kuwaitis opinion, as they both
disagree on the role of Takaful companies in propagating and publicizing the Takaful business.
Factors
Factor B
Factor C
Age
Mean
Std.
Deviation
Less than 21
1.50
0.548
21 29
51
2.12
0.683
30 39
99
2.55
0.558
40 49
78
2.38
0.490
50 59
33
2.55
0.506
60 And more
33
2.09
0.678
Less than 21
1.50
0.548
21 29
51
1.94
0.732
30 39
99
2.52
0.560
40 49
78
2.46
0.574
50 59
33
2.36
0.489
60 And more
33
2.00
0.433
F-value
P-value
Result
8.761
0.000
Sig
12.050
0.000
Sig
From table 4-18 above, it's clear that the p-value of factor B is less than 0.05 that means there is a
statistical difference between the different ages in terms of their awareness of the difference
between Takaful insurance and commercial insurance.
"Less than 21 years" is the only segment believing there is a difference between the different types
of insurance. On the other hand, the higher age segments reflect less awareness of the difference.
41
The same results go for factor C. There is a statistical difference between ages. The statistical
difference between the ages is in favour of the first segment," less than 21 years", whose mean
value indicates that they agree on the role of the Takaful companies in propagating Takaful
business.
Factors
Factor B
Factor C
Status
Mean
Std.
Deviation
Single
21
2.14
0.655
Married
261
2.37
0.610
Others
12
2.50
0.522
Single
21
1.86
0.854
Married
261
2.33
0.601
Others
12
2.50
0.522
F-value
P-value
Result
1.665
0.191
Not
Sig
6.361
0.002
Sig
From table 4-19 above, it's clear that the p-value of the awareness Factor is equal 0.191 which is
larger than 0.05; that means there is no statistical difference between married, single and otherwise
based on factor B.
The p-value of Factor C (publicity factor) is equal 0.002 which is less than 0.05 that mean there is a
statistical difference between the married, the single and the others based on factor C and this
difference is in favor of the single segment as their mean value is between "agree" and "disagree"
on the role of the Takaful companies, whereas the married segment mean value is between
"disagree" and "dont know", and the others mean value indicates that they "dont know" about
factor C.
42
Hypothesis 10: Opinion on the role of Takaful companies in propagating and publicizing Takaful
business varies based on the difference in educational levels.
Table 4-20: Education Variable Vs. Factors B&C
Factors
B&C
Factor B
Factor C
Education
Mean
Std.
Deviation
Illiterate
39
2.23
0.583
High School
72
2.54
0.580
Two years of
colleges
45
2.40
0.495
Graduate
144
2.29
0.646
illiterate
39
2.46
0.505
High School
72
2.42
0.645
Two years of
college
45
2.67
0.477
Graduate
144
2.10
0.623
F-value
P-value
3.467
0.017
12.768
0.000
Result
Sig
Sig
From table 4-20 above, it's clear that there is a statistical difference between the different
educational levels and their awareness in the difference between Takaful and others. The difference
is in favor of the illiterate segment, and the graduate segment who all seem relatively more aware
than the other levels.
Factor Cs p-value is equal to 0.000 which means there is a statistical difference in opinion based on
the level of education. From the mean value, the graduate level disagrees on the role of the Takaful
companies whereas others dont know the answer.
Factors
Current Job
Mean
Std.
Deviation
F-value
P-value
Result
Private
Factor B
Governmental
Employee
201
2.36
0.617
2.393
0.069
Not
Sig
Private Sector
42
2.57
0.501
43
Private
Factor C
Merchant
27
2.22
0.641
Retired
24
2.25
0.676
Governmental
Employee
201
2.25
0.633
Private Sector
42
2.29
0.596
Merchant
27
2.56
0.506
Retired
24
2.63
0.711
3.988
0.008
Sig
As it shown in table 4-21, hypothesis 10 is not significant as the p-value is larger than 0.05.
From the table above, it's clear that the p-value of Factor C is equal to 0.008 which means there is a
statistical difference in the opinion of the employees based on the incurrent. Based on the scale, all
the segments disagree on the role of the Takaful companies.
One-way ANOVA for Average Income per month variable with Factors
Hypothesis 13: Awareness of the difference between Takaful insurance and commercial insurance
differs based on income per month.
Hypothesis 14: Public opinion about the role of Takaful companies in propagating and publicizing
Takaful business differs based on income per month.
Table 4-22: Average Income per Month Variable Vs. Factors B&C
Mean
Std.
Deviation
33.000
1.82
0.584
81.000
2.59
0.565
114.000 2.32
0.614
72.000
2.42
0.496
33.000
2.18
0.846
81.000
2.44
0.570
114.000 2.24
0.628
72.000
0.557
Factor
B
Factor
C
2.33
44
F-value
P-value Result
14.835
0.000
Sig
2.268
0.081
Not
Sig
From table 4-22, it's clear that the p-value of Factor B is equal to 0.000 which is less than 0.05; that
means there is a statistical difference in public awareness of the dissimilarities between Takaful and
commercial insurance based on their incomes per month. This difference is in favor of the lowest
category income (400 or less) that seem relatively aware of the differences than the others.
Factor C shows no significant difference since the p-value is larger than 0.05.
One-way ANOVA for Average insurance expenses per year variable with Factors
Hypothesis 15: Public awareness of the difference between takaful insurance and commercial
insurance differs based on insurance expenses per year.
Hypothesis 16: Public opinion on the role of Takaful companies in propagating and publicizing
Takaful business differs based on insurance expenses per year.
Table 4-23: Average Insurance Expenses per Year Variable Vs. Factors B&C
Factors
Mean
Std.
Deviation
150
2.46
0.609
96
2.38
0.603
48
2.13
0.489
1.50
0.548
150
2.24
0.587
96
2.34
0.693
48
2.56
0.501
1.50
0.548
Average insurance
Less than 100 KD
Factor
B
Factor
C
F-value
P-value
Result
8.287
0.000
Sig
7.012
0.000
Sig
From table 4-23, it's clear that the p-value of Factor B is equal to 0.000; that means there is a
statistical difference in public awareness of the difference between Takaful insurance and
commercial insurance based on their insurance expenses per year. This difference is in favor of the
highest category expenses (1000 t0 3000 KD) indicating that those who spend more seem to know
more about Takaful than others, as per the scale.
Factor C also shows significant statistical differences since the p-value is less than 0.05. This
difference is in favor of the highest category expenses (1000 t0 3000 KD) indicating that they agree
on the role that Takaful companies are undertaking in publicizing the business.
45
Age
0.055
0.343
Sex
0.156
0.007*
Nationality
0.088
0.132
Marital Status
0.162
0.005*
Education
0.255
0.000*
Current Job
0.177
0.002*
Income Average
0.038
0.511
Average Insurance
0.127
0.027*
Factor B
Factor C
Corr.
effect
Corr. type
+
+
+
+
+
-
0.445
0.001*
0.000*
0.094
0.243
0.920
0.300
0.000*
Weak
Correlation
Weak
Age
Sex
Nationality
Marital Status
Education
Current Job
Income Average
Average Insurance
Spearman's
Corr.
Coefficient
0.044
0.184
0.243
0.089
0.068
0.006
0.060
0.228
Sig.
(2-tailed)
As per table 4-24, the calculated Spearman's correlation coefficient shows a weak relationship
between Factors B and C and the demographic variables. Having calculated the significance level
(2-tailed) it can be deduce that factor B has a significantly positive relationship with gender and
nationality, but a significantly negative relationship with Average Insurance.
As for factor C, the relationship is significantly positive with sex, marital status, current Job and
average insurance, however it is significantly negative with education.
Simple Linear Regression for demographic variable with Difference Factor (word
of mouth)
46
Model
(Constant)
Nationality
Sex
Average Income per month
B
1.306
0.358
0.387
0.078
Std. Error
0.199
0.101
0.108
0.039
T-Value
6.566
3.563
3.593
1.971
P-Value
0.000
0.000
0.000
0.050
R2
0.10
We conclude from the table above that the nationality; sex and average income per month have pvalues less than 0.05; that means the three independent variables have an effect on factor B, and the
equation is as follows:
Difference = 1.306+0.358*(Nationality) + 0.387(Sex) + 0.078(Average Income)
Model
(Constant)
Education
Marital Status
Current Job
B
1.671
-0.122
0.437
0.099
Std. Error
0.266
0.033
0.111
0.038
T-Value
6.289
-3.682
3.946
2.615
P-Value
0.000
0.000
0.000
0.009
R2
0.127
It is concluded from table 4-26 above that education, marital status and current job have p-values
less than 0.05; that means the three independent variables have an effect on the publicity factor (C),
and the equation is as follows:
Publicity = 1.671-0.122*(Education) + 0.437(Marital Status) + 0.099(Current Job)
questions. Answers collected for the questions of each dimension are averaged for both expected
and perceived services. Finally, the difference between perception and expectation is calculated to
show the satisfaction gap for each dimension of the Servqual model and are plotted against the
questionnaire scale (from 1 to 7) to present the level of importance. The Service Quality Gap is
calculated by subtracting Perception minus Expectation (Gap= P-E); that means the service quality
gap is identified only when the calculated value is negative.
47
4.3.1 Tangibles
tangibles
Not Important
10
5
0
7
Very Important
-5
Figure 4-1 shows that the gap in the service quality provided by the First Takaful Company is found
in numbers 2, 3, and 4 of the scale. This means that the customer expectation was higher than the
perceived services. However the gap appears to be unimportant since it is found on the lower part of
the scale.
4.3.2 Reliability
Reliability
Not Important
10
5
0
-5
-10
-15
Very Important
Figure 4-2 shows that the gap in the service quality provided by the First Takaful Company is found
in numbers 7, 6, and 5 of the scale. This means that customer expectation of company reliability is
higher than perceived services. From the graph it is obvious that the gap is in the high rank of the
scale, i.e. it is critical to the company, as most of the customers think it is very important. It also
reflects that the reliability dimension is a potential area of improvement for the company to take
into consideration.
48
4.3.3 Responsiveness
Rasponsiveness
Not Important
20
10
0
7
-10
-20
Very Important
Figure 4-3 reflects that the First Takaful Company responsiveness was much lower than customer
expectation. Customers evaluated responsiveness dimension as a very important aspect in the
insurance business. The resulting responsiveness gap is a serious problem for the First Takaful
Company.
4.3.4 Assurance
Assurance
10
Not Important
5
0
-5
-10
Very Important
The assurance dimension is depicted in figure 4-4. The gap in the service quality provided by the
First Takaful Company is found in numbers 5 and 6 of the scale which means that customer
expectation of the company is higher than perceived services. The gap is moderately highly ranked
on the scale. It also reflects that the Assurance dimension is a potential area of improvement for the
company to consider.
49
4.3.5 Empathy
Empathy
Not Important
10
5
0
-5
-10
-15
Very Important
Figure 4-5 illustrates the customer's idea of the Empathy dimension. A gap can be seen from the
above figure. The gap in the service quality provided by the First Takaful Company is found in
numbers 6 and 7 of the scale, which means that customer expectation of the company is higher than
perceived services. The gap is extremely highly ranked on the scale. This shows that the existing
"Empathy gap" perceived by customers could be a serious problems for the First Takaful Company
in this area.
50
Chapter 5
5.1 Introduction
This chapter concludes of the study conducted on Takaful business in Kuwait. The theoretical and
managerial implications of the study are summarized. Recommendations are also made as a result
of the study. Finally, suggested new ideas and improvements for further research are presented.
5.2 Conclusion
The annual report of the Ministry of Commerce in Kuwait showed that Takaful companies have the
lowest premiums and number of policies for general insurance in Kuwait for the year 2004 (The
Statistical Report For Insurance Companies, 2004). Although Takaful insurance is an Islamic
alternative to commercial insurance, it's still behind its counterparts after 5 years of operation in the
Kuwait market.
In an interview with a Takaful Insurance expert, he stressed that there is a broad ignorance about
Takaful in both internal and external customers. "They lack the minimum level of understanding
about Takaful" he said.
In a seed survey conducted by the researcher, only 17% of the surveyed sample claimed that they
know the difference between Takaful and commercial insurance. The remainder of the sample
either "do not know the difference" or believe "there is no difference".
51
Another objective of the research is to measure the gap between the customers' perception and their
expectation of the service quality provided by one of the Takaful Insurance companies. In this
instance, the First Takaful Company, as it is the first company incorporated in this field. As a
result, this research intends to gauge the service quality provided by the First Takaful Company and
highlight the gaps using the Servqual model.
To serve the above mentioned objectives, two survey questionnaires were developed and conducted.
The first questionnaire is the main survey in this research, while the Servqual model is the
secondary survey conducted on the customers of the First Takaful Company.
5.2.3 Findings
All respondents to the awareness questionnaire are self insured, which means that they personally
choose their desired insurance company. It was found however, that commercial insurance is the
most used insurance within the sample. It was also found that the first priority for a customer is the
cost of the insurance policy regardless of the type of insurance. Finally, it was found that customers
preferring not to renew their contracts with Takaful insurance companies. Most of those sampled
were not Takaful insured and along with the above, this clearly shows no clear orientation towards
Takaful insurance in Kuwait.
Having analyzed the awareness questionnaire for this research; it was found that the level of
awareness differs with gender. Whereas males think there is no difference between Takaful and
commercial insurance, females do not know if there is a difference or not.
As for the role played by Takaful companies in propagating their business, males think that Takaful
companies are not doing their best in this regard, females however appeared to have no clue about
the role undertaken by Takaful companies in publicizing their business.
The difference in awareness reflected by nationality showed that most of the Kuwaitis think there is
no difference between Takaful and commercial insurance, whereas non-Kuwaitis do not know if
there is a difference or not.
The age variable was found to have an inverse relationship with the level of awareness. Younger
segments were found to have a better understanding of the differences between types of insurance.
Similarly, it was found that they also agree to the role of Takaful companies in publicizing their
business. This might be due to the wider exposure of the youth segment to various types of media
which lead to their higher level of awareness.
Marital status has no significance when analyzed with Factor B "awareness of the difference
between Takaful and commercial insurance". However the, "single" segment was satisfied with the
role of Takaful companies in proliferating Takaful business.
52
Level of education was found to be significant in the awareness of differences between the two
types of insurance. The 'graduate' and 'illiterate' segments give a common answer, in which they
both think there is no difference between the two types of insurance. The other segments lack the
knowledge to give a precise answer.
As disposable income increases, it's found that awareness level decreases. More worried about lack
of money, lower income segments tend to give more thought on how to spend it, leading to a higher
level of awareness.
Public awareness was found to have a direct relationship with average insurance spending. As a
person spends more money on insurance, he seeks more insurance alternatives; hence he builds
more understanding about the different types. The same results apply for factor C, as those who
spend more on insurance advocate the measures that Takaful companies are undertaking to
publicize the business.
The correlation coefficient analysis shows a weak relationship between the independent variables
and the tested factors. However, population awareness was found to be in positive relation to gender
and nationality, and in negative relation to average income. On the other hand, the publicity factor
was found to be in positive relation to gender, marital status, occupation and average insurance
spending, but in negative relationship with level of education.
Simple linear regression is used to study the effect of the independent variable (demographic
variable) on the dependent variable (factors). The following equations were developed to help
identify Public awareness of both differences between Takaful and commercial insurance (Factor B)
and the effectiveness of Takaful publicity by showing its relationship with demographic variables.
Difference = 1.306+0.358*(Nationality) + 0.387*(Sex) + 0.078*(Average Income)
Publicity = 1.671-0.122*(Education) + 0.437*(Marital Status) + 0.099*(Current Job)
The results of the awareness questionnaire revealed a lack of awareness among insurance
consumers. Part of the population's ignorance about the Takaful industry is traced back to Takaful
operators not trying to understand customer need. To further investigate the roots of this problem,
the researcher decided to apply the Parasurman Servqual model on the First Takaful Company, as it
is the fist Islamic insurance operator in Kuwait.
For the Servqual questionnaire, which was applied to the First Takaful Company, five dimensions
were studied in which gaps identified and analyzed.
Tangibles Dimension: respondents were found to be satisfied with the level of this dimension. No
critical gaps were identified.
53
Reliability Dimension: a critical gap was identified in this dimension. This dimension is very
important to customers, and customers' expectations were much higher than the perceived service
from the First Takaful Company. It also shows that the Reliability dimension is a potential area of
improvement that the company might consider.
Responsiveness Dimension: The First Takaful Company responsiveness showed a very critical gap.
Customers evaluated responsiveness as s very important dimension in the insurance business. The
identified responsiveness gap is considered a potential area of improvement for the First Takaful
Company.
Assurance Dimension: A gap in the service quality provided by the First Takaful Company is found
in this dimension. The gap is moderately critical.
Empathy Dimension: Customer expectation of the service quality provided by the First Takaful
Company is higher than the perceived services. This creates a gap in a very important area for
customers. This gap is classified as a very 'critical' gap. Therefore, it is a very important area to be
revisited and improved.
In summary, the insurance customers' orientation in obtaining their insurance policies appears to be
controlled by the cost of the policy. Simply, company providing cost efficient service would garner
more customers, since there is no decisive orientation in whether to take up Takaful or commercial
insurance.
Customers are not aware of the differences between Takaful insurance and commercial insurance.
The value added by the Takaful concept is not fully utilized since most of the customers are not
aware of the advantages given by Takaful.
Public opinion on the role played by Takaful companies in propagating Takaful business points the
finger of blame on the Takaful companies them selves.
Reliability, Responsiveness, Assurance and Empathy were the four service gaps identified for the
First Takaful Company. Reliability, Responsiveness and Empathy are possible areas of
improvement for the company.
5.3 Recommendation
Takaful companies should form a lobby to have a common goal congruent in publicizing Takaful.
The lobby should work to increase people's awareness about Takaful business through different
means such as:
1- An Intensive advertising campaign to explain the pros of Takaful insurance in order to increase
the level of awareness.
54
2- The Sponsoring of major events within the country (sports, economic forums, exposes etc.)
3- To Present seminars about Takaful insurance at different gatherings and conferences.
4- To use the findings of this research to target age levels with law awareness of Takaful principle.
5- To inspire non- Kuwaitis awareness of Takaful, as they represent nearly half the population in
Kuwait.
6- To vigorously attract and educate the female customer who is seemingly less aware of Takaful
principles.
7- To develop a cost leadership strategy, since customers were found to be very price sensitive.
Since the total sample showed a very low level of awareness, it is recommended that Takaful
presents itself in booths installed in public areas as airports.etc, to increase its visibility.
There is a strong recommendation for the First Takaful Company to close the gaps found in the
areas of reliability, assurance, and empathy, as this would increase customer satisfaction with the
service quality provided.
The areas of 'tangibles' actually impacts least on service quality, yet customers tend to associate it as
a positive sign. Insurance should guard against investing in "show" and concentrate on substance.
55
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Ref. 3
APPENDIX A
Appendix A-1
SEED SURVEY
INSURANCE INDUSTRY
Is there any difference between Takaful insurance and commercial insurance?
1. Yes, (Specify: )
2. I do not know
Appendix A-2
:
.
.
Insuring humans against unpredicted risks and securing trade activities have always been
a goal of all communities. Insurance business has a vital role in solving this issue. The aim
of this survey is to measure people's understanding of insurance in Kuwait.
.)(:
)Name (optional
Age:
.:
.:
Female
Male
.:
. :
Marital Status
. :
O
O
O
O
O
Education
literate
High School
Two years institute
Graduate
Post Graduate Education
.:
O
O
O
O
O
O
Sex:
Nationality
Current Job
Governmental Employee
Privet Sector
Retired
House wife
) ( Others
. :
O
O
O
O
O
O
Appendix A-3
.
What is your Average insurance expenses per year
Less than 100 KD
From 100 to 250 KD
From 250 to 1000 KD
From 1000 to 3000 KD
More than 3000 KD
O
O
O
O
O
(Marine)
(Travel)
(Building & fire)
(Health)
(Life)
(car)
Others
(Loans)
Personal coverage
My employer pay it
I do not insure
(Marine)
(Travel)
(Life)
(car)
Building & )
(fire
(Health)
(Loans)
Others
Takaful insurance
Traditional Insurance
I do not insure
: .
If you want to insure you use
O Agents
Appendix A-4
O
O Both
.
When you go to an agent or an insurance office
O
The employee select the insurance company for you
O
The employee advise you to insure in a certain company
O
You select by yourself the insurance company
O
You do not care about the name or type of insurance company
.
When you buy insurance, which companies do you use?
O
O
O
O Islamic Insurance
O No differnce
O Traditional insurance
( ) ( ) .
Rank the following form 1 to 5 according to your priorities in selecting insurance
companies
Religious
Cost of the insurance policy
( )
Easiness of recovering damages
The nearest company to my place
(............................................................ : )
Others ()
:( )
Answer the following questions if you have previous experience with
Takaful Insurance:
( ) .
Is there any difference between traditional and Takaful insurance?
Takaful insurance is better
O
I do not know
O
Traditional insurance is better O
O
No difference
.
Does Takaful insurance provide innovative addition to its customers
( : )O
Yes (Specify: ..)
I do not know
No it does not add anything new
Appendix A-5
O
O
.
The reaction of Takaful insurance companies with damages and compensations
O
Faster than tradition insurance companies
O
Slower than traditional insurance companies
No difference
.
Awareness provided by the Takaful insurance companies for its customers
I agree
O
I do not know
O
I disagree
O
.
If you are a customer of a Takaful company, how do you asses their services
I agree
O
I do not know
O
I disagree
O
.
As a client of a Takaful insurance company, when do you expect to get back part or full of
your insurance?
( ) - O
a- in case of accident or damages
- O
b- in case the company achieve good profit
- O
c- in case the company made surplus
)( )( - O
d- in cases (a) and (c)
)( )( - O
e- in cases (a) and (b)
- O
f- I do not know
.
Did you read your insurance contract?
- O
a- I read it fully and in details
- O
d- I do not read it
( )- O
b- I read the important part only (price, amount of
insurance, cases of damage)
Appendix A-6
Do you think that the communication between the Takaful companies and its customers
provide the minimum level of knowledge about the concept of Takaful insurance
I agree
O
I do not know
O
I disagree
O
.
Takaful companies fulfill all what they promise to do
I agree
I do not know
I disagree
O
O
O
.
Are you going to renew your contract with the Takaful insurance companies
I agree
O
I do not know
O
I disagree
O
Appendix A-7
Appendix A-8
Appendix A-9
Interview
Takaful insurance in Kuwait
1. A Brief history about the Takaful in Kuwait.
2. What is the insurance for an Islamic point of view?
3. How many Takaful companies in Kuwait?
4. How do Takaful companies differ from commercial insurance companies? i.e. in what
areas?
5. Is the Takaful market large? Is it growing? Or both?
6. Is the Takaful market attractive new competitor?
7. when did the idea of this insurance company start
8. Mission / Goal of your company.
9. How does your company differ from the other Takaful ones?
10. How good do you think you are doing
11. What is your philosophy for pricing?
12. Can we get some reports representing company performance in the Kuwaiti market?
13. Do you have a Share'a committee or you get your fatwa from outside the company?
14. Do you distribute dividends to the insured parties?
15. Reinsurance
16. How can we make our survey and research useful for you?
17. Do you have a library or a source of articles?
Appendix A-10
APPENDIX B
Appendix B-1
Appendix B-2
Appendix B-3
Autobiography
I was born in Kuwait, on February 23, 1973, the youngest of 22 children. I was received the
Bachelors of since in mechanical engineering from University of Toledo in Ohio, US. I joined The
Petrochemical Industries Company In 2000, as a project engineer. I contributed in completing two
major projects from the prequalification until the start up of the plants. Currently I'm working on a
Petrochemical mega project, US$ 1.7 billion in Kuwait. I started my MBA studies in 2003, the aim
is to boost my career path, and to help me think globally and act locally.
My family:
I am married since 1997, and I have 3 children. Mohammad is my oldest son, Shua'a and Maha are
the daughters.
Future plan:
I'm very much interested in continuing my education to receive PhD in
management studies.