Enhancing Takaful Operator Performance Through the Islamic Leader’s Quality

Abstract

Based on the continuing growth of Takaful demand around the world, there is an even more pressing need to develop the Islamic leaders’ qualities and competencies on a global basis. Despite this growth, leaders’ qualities have become a major problem facing by the Takaful operators in Malaysia. Very little attention has been directed to the qualities of Islamic leaders to improve the business performance. Based on this reality, it is of interest to examine whether Islamic leaders’ qualities affect Takaful performance in Malaysia. This study focuses on the relationship between qualities of Islamic leaders’ truthfulness (al-Sidq), trust (Amanah), knowledge (Fathonah), and communication (Tabligh) and organizational performance of Takaful operators in Malaysia. The study attempts to achieve three objectives. First, to determine the qualities of Islamic leaders in Malaysian Takaful industry. Second, to analyze the effect of Islamic leaders’ qualities on Takaful performance in Malaysia. Third, to develop a model of qualities of Islamic leaders and Takaful performance in Malaysia. A total of 110 questionnaires distributed and 59 responded in which they were analyzed. The statistical tools used to analyze the descriptive statistics, factor analysis, reliability analysis and multiple regressions. This study has added to the concept of Islamic leaders’ qualities by referring to Islamic Leadership Theory and presenting the model to increase understanding of Islamic leaders’ qualities and organizational performance of the Takaful industry in Malaysia. The results of this study have provided a significant contribution to the Malaysian Takaful operators in improving their performance from both theoretical and practical aspects.