Faith and Finance in Harmony: The Role of Spiritual and Religious Values in Driving Intention to Use Sharia Insurance
Keywords:
Intention to Use, Perceived Taqwa Value, Religio-Financial Literacy, Religious Social Norms, Spiritual Risk AversionAbstract
Research aims:
Despite Indonesia being the country with the largest Muslim population, participation in Sharia insurance remains relatively low, indicating a gap between religious values and actual financial behavior. This study aims to analyze the factors influencing students’ intention to use Sharia insurance, with a particular focus on perceived taqwa value, spiritual risk aversion, religio-financial literacy, religious social norms, and trust in Sharia governance as a mediating variable.
Design/Methodology/Approach:
This study employs a quantitative approach using Partial Least Squares Structural Equation Modeling (PLS-SEM). Data were collected through questionnaires distributed to 148 university students and analyzed to examine both direct and indirect relationships among the proposed variables.
Research findings:
The results show that perceived taqwa value has a significant positive effect on intention to use Sharia insurance (β = 0.542, p < 0.01). In contrast, spiritual risk aversion, religio-financial literacy, and trust in Sharia governance do not directly influence intention. Religious social norms show a marginal effect on intention, while practical financial factors and lack of actual experience emerge as the main barriers preventing students from translating religious motivation into concrete participation.
Theoretical Contribution/Originality:
This study extends the Theory of Planned Behavior by incorporating spiritual and religio-financial constructs, highlighting the distinctive role of perceived taqwa value in shaping intention toward Sharia insurance among young Muslim consumers.
Practical/Policy/Social Implications: Sharia insurance providers should emphasize spiritual alignment and religious values in their communication strategies while developing affordable products, such as micro-takaful schemes, to accommodate young consumers with limited financial capacity.
Research Limitations/Implications:
The study is limited by its student-based sample, cross-sectional design, and the exclusion of economic capability variables, indicating the need for future research involving diverse income groups and longitudinal approaches.
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