DOES MUSLIM SOCIETY IN INDONESIA HAVE A GOOD UNDERSTANDING OF AND TRUST IN SHARIA INSURANCE?

Abstract

The market share of sharia insurance in Indonesia is still low compared to the conventional one even though the majority of people in this country are Muslim, indicating that there is a gap between expectations and reality. One important factor that influences market share is public trust which is built from understanding a product. Therefore, this research aims to measure the level of understanding of and trust among Muslims in Malang city in Sharia insurance products. This is empirical research employing a quantitative-descriptive analysis method. This research has found that Muslim society in Malang City still has a low understanding of Sharia insurance. In terms of the aspect of trust, their level is relatively good even though it is only built from an emotional aspect, not a cognitive one. Cognitive trust can only be built from a good understanding, whereas emotional trust can result from an emotional relationship. These findings help provide empirical data to support measures to increase Sharia insurance literacy in Indonesia.