Consumption of Family Takaful affected by Microeconomic Factors: A Case Study of Islamic insurance Takaful in Pakistan

Abstract

This study empirically verifies the link between macroeconomic variables (i.e. income per capita, savings, inflation, stock and index) with the demand for Family Takaful in the context of Pakistan using time-series data from 2006 to 2016 of Pak-Qatar Family Takaful Company and Dawood Family Takaful Company. It was concluded from this study that per capita income is a strong forecaster of Family Takaful demand in Pakistan, while other macro-economic factors such as KSE composite index has significant and positive relationship with Takaful demand in Pakistan. The other three variables i.e. saving, interest rate and inflation are having insignificant relationship with Family Takaful demand in Pakistan.

Keywords

• takaful demand
• per capita income
• stock (kse index)
• saving
• interest rate and inflation