Key Enhancing Factors of Sharia Insurance Interest: The Role of Literacy, Religiosity, Trust, and Consumer Attitude

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FORMOSA NEWS

The sharia insurance industry in Indonesia faces major challenges regarding low market penetration despite high public awareness of sharia-based products. A recent study conducted by Alan Rizki Putra and Viniyati Maftuchach from Universitas Teknologi Muhammadiyah Jakarta in July 2026 revealed that public purchase intention toward sharia insurance products is heavily influenced by sharia financial literacy, the level of religiosity, and public trust, with consumer attitude playing a key mediating role. These findings are crucial to bridging the gap between high awareness and low actual adoption among the public.

Although national sharia insurance assets show an increasing trend, its market share still lags far behind the sharia banking sector. Based on data from the Financial Services Authority (OJK), the national sharia insurance market share has only reached 7.2% of the total insurance industry. An initial survey conducted by the authors in South Manggarai, South Jakarta, showed a similar phenomenon: 73.3% of respondents were familiar with the term sharia insurance, but only 13.3% had ever purchased a policy. The main obstacles are doubts regarding institutional transparency and a minimal understanding of product operational mechanisms.

To examine this phenomenon, the research employed a quantitative causal-explanatory approach involving 100 urban Muslim respondents in RW 03, South Manggarai, South Jakarta. Data collection was conducted using a five-point Likert scale questionnaire via print and online forms, which was then analyzed using the Partial Least Squares Structural Equation Modeling (PLS-SEM) method with SmartPLS software.

The statistical analysis results prove that sharia financial literacy, religiosity, and public trust exert a positive and significant influence on both consumer attitude and purchase intention. The structural model showed a coefficient of determination ($R^2$) value of 52.0% for the consumer attitude variable and 68.9% for the purchase intention variable.

Several key findings from this study include:

• Sharia financial literacy provides a significant direct influence on purchase intention (path coefficient of 0.351) and acts as the strongest driver in shaping consumer attitude (path coefficient of 0.442).
• Religiosity is proven to have a positive direct influence on purchase intention (0.151) and consumer attitude (0.356), which simultaneously reinforces the view that religious values drive a preference for sharia financial products.
• Public trust in the integrity and credibility of managing institutions also provides a significant influence on purchase intention (0.142) and consumer attitude (0.327).
• Consumer attitude is proven to act as a very strong partial mediator in connecting literacy, religiosity, and trust to purchase intention, with the direct influence of attitude on purchase intention reaching 0.462.

The implications of this study emphasize that sharia insurance service providers, regulators, and industry associations need to change their communication strategies. Instead of directly targeting sales transactions, marketing and educational strategies must be focused on efforts to build favorable consumer evaluation and attitude through increased transparency of fund management and transparent product mechanism education.

“Sharia insurance service providers and regulators need to strengthen collaboration to expand sharia financial literacy education, strengthen transparent institutional practices, and design communication that aligns with religious values to shape favorable consumer attitudes,” revealed Alan Rizki Putra and Viniyati Maftuchach in their study.

Author Profiles:

• Alan Rizki Putra: Researcher in management and sharia finance, Universitas Teknologi Muhammadiyah Jakarta.
• Viniyati Maftuchach: Researcher and academic in social sciences and management, Universitas Teknologi Muhammadiyah Jakarta.

Research Source:

• Journal Article Title: Islamic Financial Literacy, Religiosity, and Public Trust on Purchase Intention toward Sharia Insurance Products: The Mediating Role of Consumer Attitude
• Journal Name: International Journal of Management Analytics (IJMA)
• Publication Year: 2026
• DOI: https://doi.org/10.59890/ijma.v4i3.36