Macroeconomic essence of Takaful: Exploring the significance and impact of Takaful in macroeconomic context

Shahîd, Irfan

doi:10.24191/jeeir.v6i1.8771

Cited by 4 publications

(6 citation statements)

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“…The results processed in this paper drop in the same direction as those (Shahid, 2018), which affirms the significant macroeconomic implications of the Takaful industry. By promoting productivity and enabling economic security, Takaful products can stimulate economic activity and subsequently foster prosperity.…”

Section: Discussionsupporting

confidence: 78%

“…To the best of our knowledge, three studies have been conducted in this direction. These include (Rawat & Mehdi, 2017), (Shahid, 2018), and (Izzati et al, 2020). Only the first of these deals with macro-econometric modeling.…”

Section: Introductionmentioning

confidence: 99%

“…These two effects are bound to boost economic growth by stimulating both saving and investment (Izzati et al, 2020). In this line, (Shahid, 2018) concluded that there is a catalytic effect of alternative insurance, such as Takaful, on economic conditions. Although theoretically justified, empirical verification is essential.…”

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confidence: 99%

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The Impact of Takaful Insurance on the Manufacturing Industry in Malaysia: Empirical Evidence through ARDL Bounds Testing Approach

Lahoucine

2023

ESJ

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In post-financial crisis, the interconnection between the financial sector and real activity is gaining more interest in the literature. Given that the insurance sector represents a large part of the financial globe, it will be essential to explore its impact on the real economy. Further, the expansion of participative finance, in the last decade, requires contextualising the question in this sense. However, this paper experiments with the effect of Takaful insurance on real activity in Malaysia. Hence, an ARDL model is estimated on quarterly data between 2010Q1 and 2017Q4. The results show a positive and significant impact of the increase in Takaful contributions to manufacturing activity. On the same side, a long-term relationship between the two sides is established in the image of a significative cointegration.

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Section: Discussionsupporting

confidence: 78%

Section: Introductionmentioning

confidence: 99%

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The Impact of Takaful Insurance on the Manufacturing Industry in Malaysia: Empirical Evidence through ARDL Bounds Testing Approach

Lahoucine

2023

ESJ

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“…Husin and Ab Rahman (2013) addressed the existence of the market mainly to cater to the spiritual needs of Muslims who are conscious of their religious obligations. According to Shahid (2018), the growth of Islamic insurance is different in each country depending on demography, political, religious beliefs, and sociocultural environment. Hassan and Abbas (2019) regarded religiosity as a critical and influential factor, ranking second in terms of effect on takaful adoption.…”

Section: Religiositymentioning

confidence: 99%

A Conceptual Framework of E-Takaful Participation Readiness (ETPR) among Individuals at Insurable Age in Malaysia

Farah Hanan,

Ab Ghani,

Arifin

2024

JEB

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Malaysians need more savings and a critical financial backup to protect themselves from adversity. Hence, a call for a digital platform is vital to further reach out in the current economic situation. The phenomenal growth of B2C e-commerce, particularly after the pandemic, has impacted almost every industry, including banking and financial services. This research suggests an integrated model of E-Takaful Participation Readiness (ETPR). However, academic research on digital takaful is still in its early stages. Most academics focus on technology and ignore the takaful institutions adopting it. Past studies have explored the topic of e-banking readiness, but limited studies have focused on its relation to the takaful area. This study is a pioneer in examining consumer participation readiness for e-takaful services, particularly during the digital shift process due to the pandemic. This paper proposes a conceptual framework for e-takaful adoption. Takaful institutions can use the proposed framework as a starting point for implementing e-takaful, and scholars can use it to expand, refine, and evaluate takaful technology (Takatech) research. The findings of this study can be shared with takaful industry stakeholders and regulatory bodies to help them develop innovative marketing strategies and customer-centric takaful products.

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“…That the forms of insurance product offered by a firm have a significant influence on its required investment strategy is clear (Shahid, 2020). For example, where investment guarantees are offered as part of a product, policyholders cover the costs of providing these guarantees, with the insurer investing funds raised from these charges on risk managementhedging, or additional equity capital, or reinsurance (e.g., see Huber et al, 2015).…”

Section: Takaful Product's Influence On Investmentmentioning

confidence: 99%

The Malaysian Fund Managers Perspective on the Viability of Takaful Operators Investment

Muhamat

Jaafar

Karim

et al. 2020

al-Uqud

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Takaful operators are expected by the policyholders to act beyond the role of traditional insurance companies that only offer Shariah-compliant protection services. They are expected to be commercially viable. One of the ways to be commercially viable is takaful operators must be able to invest the policyholders' funds in the profitable investment avenues. Nevertheless, the critical issue before investing the funds is to develop products that are suitable with the takaful operators' investment strategy. This study employed a questionnaire survey to gather the feedback of fund managers from 11 takaful operators in Malaysia — all were the senior staffs of takaful operators in Malaysia were surveyed. The questionnaire is developed in the form of a Likert scale ranging from 1 to 5 as the research instrument. By Delphi technique, the draft of the questionnaire was sent to a panel of experts for review, was adopted, and their feedback reflected in the final questionnaire. The experts were a shariah advisor, a corporate finance manager, and a senior executive at the central bank. Findings indicate that policyholders' expectations on their investments are met and the products so far compatible with takaful operators' investment strategies.

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Macroeconomic essence of Takaful: Exploring the significance and impact of Takaful in macroeconomic context

Cited by 4 publications

References 0 publications

The Impact of Takaful Insurance on the Manufacturing Industry in Malaysia: Empirical Evidence through ARDL Bounds Testing Approach

The Impact of Takaful Insurance on the Manufacturing Industry in Malaysia: Empirical Evidence through ARDL Bounds Testing Approach

A Conceptual Framework of E-Takaful Participation Readiness (ETPR) among Individuals at Insurable Age in Malaysia

The Malaysian Fund Managers Perspective on the Viability of Takaful Operators Investment

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