Customer Perceptions of Sharia and Conventional Insurance Operations at AJB Bumiputera 1912

Abstract

This study aims to analyze customer perceptions of the operational aspects of Sharia and conventional insurance at AJB Bumiputera 1912 using a comparative quantitative approach. The research focuses on four key dimensions of operations: transparency, efficiency, trust, and satisfaction. The study involved 200 respondents, comprising 100 Sharia insurance customers and 100 conventional insurance customers, selected through purposive sampling. Data were collected using a closed-ended Likert-scale questionnaire and analyzed using descriptive statistics and independent t-tests to identify perception differences between the two groups. The results show that Sharia insurance customers have a more favorable perception of company operations, particularly in the dimensions of transparency and trust, which exhibited statistically significant differences (p < 0.05). Sharia customers gave average scores of 4.3 for transparency and 4.5 for trust, while conventional insurance customers gave scores of 3.8 and 4.1, respectively. Although efficiency and satisfaction also showed positive trends for the Sharia group, the differences were not statistically significant. These findings suggest that the Sharia insurance system is perceived as fairer, more ethical, and more aligned with the customers’ spiritual values, which contributes to greater loyalty and satisfaction. Religiosity, product usage experience, and service quality are identified as the main determinants of positive perceptions toward Sharia insurance. The implications of this study highlight the importance of value-based communication strategies, improved Islamic financial literacy, and internal reforms to enhance perceptions of conventional insurance. This research is expected to serve as a strategic reference for the management of AJB Bumiputera 1912 in strengthening competitiveness and contributing to the development of consumer behavior literature in Indonesia’s insurance industry