Abstract
The purpose of this study is to investigate the impact of religiosity dimensions on the policyholders of Takaful or conventional insurance companies. In order to conduct the research, data were collected from Takaful policyholders and conventional insurance policyholders. Specifically, customers of two Takaful companies and two conventional insurance companies were selected to participate in the study. Descriptive statistics were employed to summarize the collected data, and binary logistic regression was utilized to analyze the relationship between religiosity dimensions and insurance policy selection. The findings of the survey revealed that Takaful holders exhibit a higher degree of religiosity compared to conventional insurance policyholders. This indicates that religiosity plays a significant role in shaping the insurance preferences of individuals in a Muslim-majority country like Pakistan. Understanding which dimension of religiosity impacts insurance choices can provide valuable insights for designing more tailored and advanced insurance products that align with the requirements of the target market. This study contributes to the existing literature by presenting novel empirical research conducted on Takaful in a developing Muslim-majority country. It specifically focuses on analyzing the impact of religiosity dimensions on the policyholders of both conventional and Takaful companies. By exploring the relationship between religiosity and insurance choices, this research aims to enhance the understanding of the factors influencing policyholders' decision-making processes in the insurance sector.