Socio-Religious Determinants of Public Acceptance of Sharia Insurance in Contemporary Indonesia

Abstract

The rising demand for Islamic financial instruments globally has placed Sharia insurance (takaful) at the center of ethical finance discourse. Indonesia, being the most populous Muslim-majority nation, provides a fertile ground for examining the socio-religious underpinnings influencing public acceptance of Sharia-compliant financial services. However, despite the growth of Islamic banks, Sharia insurance remains under-penetrated, raising crucial questions about its societal reception. This study aims to explore the key socio-religious factors that determine public acceptance of Sharia insurance, with a focus on Indonesian Muslim communities. It seeks to answer how religious commitment, understanding of Sharia principles, trust in Islamic institutions, and socio-economic awareness influence the choice to engage with takaful products. Special attention is paid to the role of religious leaders (ulama), community norms, and perceptions of halal risk-sharing. Employing a qualitative textual analysis method rooted in Islamic epistemology, the research examines classical Islamic jurisprudence (fiqh muʿāmalah), contemporary fatāwā, Indonesian scholarly literature, and socio-religious behavior theories. The study finds that while religious motivation plays a pivotal role, factors such as maqāṣid al-sharīʿah understanding and institutional trust significantly modulate acceptance levels. This research contributes to the expanding field of Islamic economics by clarifying the nuanced socio-religious mechanisms shaping public reception of Sharia insurance. Its findings hold policy relevance for Islamic finance stakeholders aiming to enhance inclusivity, awareness, and ethical engagement within Muslim societies.