Performance determination model of human capital development for takaful industry in malaysia

This paper explore the relation between theoretic of determination factors and performance by agents for human capital development of takaful industry. Like conventional insurance products, takaful schemes are also "sold and not bought". It means that only a few customers or participants voluntarily come to takaful operators to participate into the takaful schemes. Therefore, takaful operators have to depend on aggressive wakil or agents which are considered as one of the main human capital development in takaful industry who are willing to consult, explain and convince the potential participants about the takaful systems and schemes. From the Malaysian takaful industry development point of view, the role of agents as intermediaries between customer and takaful operator is getting more and more important today. This phenomenon can be represented by the increasing number of agents' year to year (Insurance Annual Report, 2008). However the agents' profile as a whole is still the same; Malay Muslim agent comprises of only 21% from the total number of agents and most of them are part time agents (LIAM, 2006). In addition, the duration as agents for Malay Muslim is less than two years (JAMIN, 1998). The part time agents are not keen to enhance their knowledge and skill about takaful and therefore they cannot convince the customer the importance of takaful. This will result in low participation and after a while the agent will leave the industry. Several factors like efforts, motivation (intrinsic and extrinsic), attitudes (role conflict, role ambiguity and commitment) and leadership behavior are being discussed and analyzed in this study for "performance determination model" of human capital development for takaful industry. Thus, it is hope that all parties, which are related to takaful industry i.e. regulators such as Bank Negara, Takaful Operators, agencies and agents himself can play the role in enhancing the performance among takaful agents and it would lead to the effectiveness of human capital development in Islamic economics system as a whole.

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