Factors that Influence the Ethical Behaviours of Takaful Agents

Abstract

Most takaful companies in Malaysia require an agent as a representative for them to promote products and takaful services to the community. The agent receive rewards in the form of commission depending on his subscription. However, in conducting the job as an agent in promoting takaful products and dealing with customers on behalf of the company, there are a few ethical issues that arise. Some of the issues include being deceitful in explaining a product or takaful service, giving false information, hiding information and delaying settlement claim. Therefore, the matter arises of the factors that influence these agents’ behaviours. How does these factors influence the performance of the takaful industry? Does the factors influencing the takaful agents’ behaviours lead to an ethical or non-ethical person? To answer these questions, this paper has two objectives. Firstly, this paper is written to identify ethics and factors that influence takaful agents’ behaviours. Secondly, the paper is written to analyse these ethics and factors that influence takaful agents’ behaviours. The paper applies a qualitative approach by employing document analysis. Next, the data obtained will be analysed using content analysis method. The findings of the study show that target sales are one of the dominant factors that influence behaviour among takaful agents. Hence, based on the findings of this study, this paper offers two main suggestions. Firstly, the management of takaful company needs to create positive working environment among takaful agents. Apart from that, takaful companies must also have a strong level of leadership in terms of character, values and ethical behaviour.