scholarly journals Solvency determinants: evidence from the Takaful insurance industry

2022 ◽  
Author(s):  
Jassem Alokla ◽  
Arief Daynes ◽  
Paraskevas Pagas ◽  
Panagiotis Tzouvanas
Keyword(s):  
Insurance Industry ◽  
Takaful Insurance

Takaful models: origin, progression and future

2019 ◽  
Vol 11 (6) ◽  
pp. 1801-1819
Author(s):  
Hafiz Ali Hassan
Keyword(s):  
Financial Services ◽  
Insurance Industry ◽  
Supervisory Board ◽  
Insurance Companies ◽  
Important Indicator ◽  
Content Type ◽  
Human Needs ◽  
Historical Developments ◽  
Takaful Insurance ◽  
Current Practices

Purpose The concept of Takaful has a long history. It is linked with the era of Prophet Muhammad 1,400 years ago. The globalization and development of socio-economic systems have made business activities more complex in response to emerging human needs and requirements. Similarly, Takaful insurance has fully commercialized and become an important indicator of the international financial market. The purpose of this study is to understand the Takaful mechanism and progression of its procedures to date since its inception. Design/methodology/approach This study seeks to examine the origin, evolution and historical developments of Takaful mechanism, operations, models and governing framework with extant literature review from previous studies and current practices. Findings The modern Takaful insurance first began in Sudan back in 1979. The Takaful operations must abide by the Sharia laws and work under the supervision of the Sharia Supervisory Board. Since its evolution, Sharia scholars have introduced various Takaful models that are going to be explained in this study. Moreover, several Islamic organizations, including the “Islamic Financial Services Board” and the “Accounting and Auditing Organization for Islamic Financial Institutions,” have provided guidelines and supervision to develop and strengthen the Takaful industry further. The study acknowledges Takaful as a growing insurance industry with huge potential and promising future in both Pakistan and the international market. Practical implications During the analysis, various deficiencies and loopholes were identified, which are responsible for the unmatched growth of conventional insurance. They can be eliminated with the joint efforts of industrial players, Sharia scholars and Takaful insurance companies. Hence, Islamic scholars and academic researchers are encouraged to develop and modify the current practices of Takaful mechanism according to current market demands and consumer approach. The research efforts will help Takaful operators to develop more innovative Takaful products adhering Sharia compliance. Consequently, it will help to access more consumer market and further enhances the Takaful growth. Originality/value This study is an effort to provide a basic understanding of the mechanism of Takaful models. The study helps to comprehend how Takaful models have evolved and been modified over the course of time. Moreover, it provides a base for further development and improvement in current practices of Takaful models, which will result in increased progress for the Takaful industry.

scholarly journals DOES EFFICIENCY PROMOTE COMPETITIVENESS OF THE INSURANCE INDUSTRY?

2018 ◽  
Vol 19 (4) ◽  
pp. 566-591 ◽  
Author(s):  
Hui Shan Lee ◽  
Fan Fah Cheng ◽  
Annuar Md Nassir ◽  
Nazrul Hisyam Ab Razak
Keyword(s):  
Data Envelopment Analysis ◽  
Insurance Industry ◽  
Lower Price ◽  
Data Envelopment ◽  
Managerial Practice ◽  
Statistic Method ◽  
Improve Efficiency ◽  
Insurance Firms ◽  
Takaful Insurance ◽  
Shed Light

This paper contributes to the existing literature by examining the efficiency and competitiveness of the Takaful insurance. We employ the Data Envelopment Analysis (DEA) to compute the efficiency of Takaful operators, while Panzar-Rosse (P-R) H-statistic method is used to evaluate the degree of competition. The findings indicate that the inefficiency in Takaful’s operations is affected by the scale of operations but not by inefficiency in managerial practice. Actuaries need to pay attention to estimating provisions for outstanding claims, as this factor is negatively influencing the efficiency of Takaful insurance. Additionally, the managers are cautioned not to overspend on commissions paid to the agents because this will reduce the profit of the Takaful operators. The findings to a very large extent indicate that improvement in efficiency will increase the entry of a more viable competitor to participate in the Takaful industry. The regulators need to implement prudent monitoring of the operations of Takaful insurers because improvements in efficiency will make Takaful operators more competitive. The implications further shed light on the motivation for insurance firms to improve efficiency that enable them to charge lower price to enhance competition which may benefit both the firms and customers.

scholarly journals The magnitude of the investment yield of sharia insurance in Indonesia

Accounting ◽  
2021 ◽  
pp. 497-506 ◽  
Author(s):  
Mutia Ismail
Keyword(s):  
Monetary Policy ◽  
Financial Services ◽  
Insurance Industry ◽  
Secondary Data ◽  
Partial Least Square ◽  
Least Square ◽  
Capital Inflows ◽  
Social Implication ◽  
Takaful Insurance ◽  
The Impact

The aim of this paper was to investigate the effect of the gross domestic product (GDP) and population on the investment yield of sharia insurance in Indonesia. This research used a causal research design with Indonesian sharia insurance as the focus. The secondary data were sourced from the Financial Services Authority (OJK) of Indonesia in 2016–2017. The analysis was performed with Smart Partial Least Square (PLS) software and indicated that the GDP did not influence the investment yield; however, the population did influence the investment yield of sharia insurance in Indonesia. The implications of this study are expected to recommend to the Indonesia Financial Services Authority regarding the impact of the GDP and population on the investment yield in Indonesia. In addition, the implication provides support for the Indonesian monetary policy authorities to anticipate the monetary policy by the Fed, regarding dovish and hawkish sentiments, to encourage capital inflows to emerging countries due to the impact on the development of Sharia/Takaful insurance in Indonesia. A social implication is that the sharia insurance industry in Indonesia can develop if the public can enjoy convenience in applying for premiums and ease in receiving sharia insurance claims. The majority of Indonesia's population of Moslems requires an openness in the process. This study takes a sample of different sharia industry characteristics to compare sharia and conventional types of industry.

Takaful insurance efficiency in the GCC countries

Humanomics ◽  
2015 ◽  
Vol 31 (3) ◽  
pp. 344-353 ◽  
Author(s):  
Khalid Al-Amri
Keyword(s):  
Insurance Industry ◽  
Allocative Efficiency ◽  
Content Type ◽  
Gcc Countries ◽  
Efficiency Measures ◽  
Dea Analysis ◽  
Cost Efficient ◽  
Using Data ◽  
Technical Cost ◽  
Takaful Insurance

Purpose – The purpose of this paper is to analyze the performance of the Takaful insurance firms in the Gulf Cooperation Council (GCC) countries and do a relative analysis for its different units. Design/methodology/approach – This paper analyzes the technical, pure technical, cost and allocative efficiency of Takaful firms in the GCC countries using data envelopment analysis (DEA) methodology. Findings – The Takaful insurance industry in GCC is highly technical and pure technical efficient. However, it is moderately cost efficient, and there is a large opportunity for improvement. UAE and Qatar score the highest technical efficiency, while Saudi Arabia and UAE are the most cost efficient among the GCC countries. Originality/value – The primary contribution of this paper is to provide the first DEA analysis of the Takaful industry in the GCC countries. To the best of the author’s knowledge, this is the first study on the Takaful insurance industry that uses different types of efficiency measures, namely technical, pure technical, allocative and cost efficiency, in the GCC countries. This paper also contributes in the literature of the inputs and outputs selection for the Takaful insurance efficiency calculation.

Impairment Questions and Answers

1997 ◽  
Vol 2 (2) ◽  
pp. 4-5
Keyword(s):  
Insurance Industry ◽  
Organized Labor ◽  
Injured Workers ◽  
Disability Benefits ◽  
Uniform System ◽  
Questions And Answers

Abstract Controversy attends use of the AMA Guides to the Evaluation of Permanent Impairment (AMA Guides) in defining injured workers’ permanent partial disability benefits: States desire an efficient, nonsubjective way to determine benefits for nonscheduled injuries and are using the AMA Guides to define the extent of disability. Organized labor is concerned that use of the AMA Guides, particularly with modifications, does not yield a fair analysis of an injured worker's disability. From its first issue, The Guides Newsletter emphatically emphasized and clearly stated that impairment percentages derived according to AMA Guides criteria should not be used to make direct financial awards or direct estimates of disability. The insurance industry and organized labor differ about the use of the AMA Guides in defining permanent partial disability (PPD). Insurers support use of the AMA Guides because they seek a uniform system that minimizes subjectivity in determining benefits. Organized labor is particularly concerned about the lack of fairness of directly equating impairment and disability, and if the rating plays a role in defining disability, additional issues also must be considered. More states are likely to use the AMA Guides with incorporation of additional features such as an index to PPD.

Insurance Industry Proposes Quid Pro Quo

2008 ◽  
Vol 38 (24) ◽  
pp. 2
Author(s):  
MARY ELLEN SCHNEIDER
Keyword(s):  
Insurance Industry
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