Sustaining Takaful Agents: A Study Of Motivation, Resilience, And Ethical Challenges In Islamic Insurance

Abstract

The Takaful industry in Malaysia continues to face a persistent challenge: high turnover rates among Takaful agents, which disrupt business continuity, weaken customer trust, and hinder long-term institutional growth. Despite the industry’s rapid expansion, many agents struggle to sustain their careers due to intense competition, emotional pressure, unstable income structures, and the increasing complexity of Shariah-compliant financial services. These issues highlight a critical gap in understanding what enables Takaful agents to remain resilient and committed in a demanding and evolving marketplace. To address this gap, this qualitative study explores the lived experiences, challenges, and coping strategies of industry practitioners through in-depth interviews with 12 participants from diverse levels of involvement in the Takaful ecosystem. The participants, aged between their late twenties and mid-forties with three to fifteen years of experience, provided rich insights into the social, psychological, and organisational factors that shape agent sustainability. Using an interpretive approach, the study moves beyond prior research that relied predominantly on quantitative surveys and offers a more nuanced understanding of the dynamics influencing long-term career continuity. The findings reveal that sustaining Takaful agents requires a multifaceted approach that includes continuous human capital development, a balanced system of intrinsic and extrinsic motivators, and the psychological resilience needed to manage workplace stress. Islamic Work Ethics, particularly honesty, accountability, social responsibility, and ethical commitment, emerge as essential pillars of long-term professional sustainability. Grounded in Human Capital Theory and Self-Determination Theory, this study contributes theoretical refinement and offers practical insights for agency managers, training academies, and policymakers seeking to strengthen workforce stability and retention in the Islamic insurance sector.