Principles of Risk Management and Insurance

Henebry, Kathleen L.; Rejda, George E.

doi:10.2307/253600

Cited by 96 publications

(16 citation statements)

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“…This risk occurs because an adverse selection of applicants with higher-than-average chances of loss may succeed in obtaining takaful coverage at standard rates. This would disturb the cash flow pattern and, hence, affect the stability of company profits (Rejda, 2006). Therefore, tabarru' funds must be sufficient to cover expected claims.…”

Section: The Concept Of Takaful and The Tabarru' Fundmentioning

confidence: 99%

Potential of Tabarru’ Fund’s Coverage for Pandemics within Framework of Takaful: Does it Necessitate Ijtihad?

Mustafa

Rahman

2023

IJISEF

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Global economic and social development has been severely inhibited by the COVID-19 outbreak. The long-term closure of economic sectors has resulted in numerous losses and presents a great challenge for many industries in recovering their losses. Pandemics are not generally covered by insurance and takaful companies because the outbreak of a disease on a global level is a rare event that requires a substantial amount of capital to cover it. Still, many insurances and takaful operators voluntarily agreed to waive this condition and circumvent relevant rules to provide coverage for COVID-19 treatment during a specific period of time. The takaful industry has been challenged in providing hospitalization benefits to COVID-19 patients where a pandemic clause is not included in the takaful contract. This conceptual paper focuses on when the contracting parties require ijtihad from shariah scholars to determine the need for tabarru’ funds when a pandemic has not been stated in the contract. By using qualitative approach, this study finds that takaful contracts require amendment of their clauses, or that other fundings need to be established for matters not specified in contracts, such as epidemics and pandemics.

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Section: The Concept Of Takaful and The Tabarru' Fundmentioning

confidence: 99%

Potential of Tabarru’ Fund’s Coverage for Pandemics within Framework of Takaful: Does it Necessitate Ijtihad?

Mustafa

Rahman

2023

IJISEF

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“…Insurance firms lacking risk control will aggregate claims from clients, bringing about more harm and poor performance (Magezi, 2003). Rejda (2008) indicated that risk management incorporates identifying risk exposures and choosing effective procedures to manage them. The concept of risk has received different definitions that are attributed to the diverse nature of business units that face the risks (Holton, 2004).…”

Section: Background Of the Studymentioning

confidence: 99%

Insurance Risks and Financial Performance of Insurance Companies in Kenya

2023

JFA

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The insurance industry is instrumental in economic growth through enabling protection, capital creation and promoting commerce. However, there has been a decline in the insurance industry's profitability in Kenya. Hence, the study assessed the effect of insurance risks on the financial performance of insurance companies in Kenya. Specifically, the study examined the effects of credit risk, liquidity risk, solvency risk, reinsurance risk and underwriting risk on financial performance of insurance companies in Kenya. GDP was used as a moderating variable. The study was anchored on agency theory, credit risk theory, liquidity preference theory and collective risk theory. The target population included all the 53 licensed insurance companies operating in Kenya since 2015. A census approach was used. Explanatory research design and positivism research philosophy were utilized. Secondary data was gathered from audited financial statements submitted to Insurance Regulatory Authority for the period between 2015 and 2020. With the aid of STATA, panel data was analysed through descriptive statistics, correlation and regression analyses. The multiple regression results revealed that credit risk had a negative significant effect on financial performance, liquidity risk had a negative significant effect on financial performance, solvency risk had a negative significant effect on financial performance and underwriting risk had a negative significant effect on financial performance. But reinsurance risk had a positive insignificant effect on financial performance. GDP growth rate significantly moderates the relationship between the insurance risks and the financial performance of insurance companies in Kenya. The study recommended that insurance companies should have good credit risk management frameworks to minimize credit risks, implement proper investment portfolio management to guard against liquidity risks, in cases of negative asset base, increase the share capital, cover most of their claims themselves but ensure they have adequate reinsurance where high risk investment is involved and put in place proper policy estimation and valuation techniques.

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“…5 with a mean value of 4.0603. Risk management is a process that identifies loss exposure faced by an organization and selects the most appropriate technique for treating such exposures (Henebry & Rejda, 1995;Chang et al, 2018b). The risk is generated, especially in HSR projects, by the less frequent and more inaccurate prediction of the future due to the fast pace of change (Wholey, & Brittain, 1989).…”

Section: Risk Management Capabilitymentioning

confidence: 99%

Understanding Critical Variables Contributing to Competitive Advantages of International High-Speed Railway Contractors

Niu

Deng

Zhang

et al. 2019

Journal of Civil Engineering and Management

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This article is devoted to identifying and explaining the critical variables contributing to competitive advantages in international High-Speed Railway (HSR) projects from the contractor’s perspective. A total of 24 variables were identified by the literature review and a pilot study. An international questionnaire survey was performed to obtain professional opinions from both practitioners and the academy. The 24 variables were ranked and clustered into 6 factors using exploratory factor analysis. Furthermore, a case study of the Early Train Operator project of the California HSR was carried out by the survey, interview, and first-hand data. The results indicated that the top six ranked variables are (1) None Accident History, (2) Eligibility & International Criteria, (3) Contract Reputation, (4) Marketing Strategy, (5) Risk Management Capability, and (6) Technical Responsiveness. Furthermore, the 24 variables are grouped into six dimensions: Glocalization, Marketing, Safety, Economics, Technology, and Responsibility. The case study indicated that the factor framework was suitable and tractable for the application. The findings of this paper could (1) assist international HSR contractors in obtaining a better understanding of the deeper determinates of competitive advantages and (2) serve as a valuable reference for developing their competitive advantages in the international HSR market.

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Principles of Risk Management and Insurance

Cited by 96 publications

References 0 publications

Potential of Tabarru’ Fund’s Coverage for Pandemics within Framework of Takaful: Does it Necessitate Ijtihad?

Potential of Tabarru’ Fund’s Coverage for Pandemics within Framework of Takaful: Does it Necessitate Ijtihad?

Insurance Risks and Financial Performance of Insurance Companies in Kenya

Understanding Critical Variables Contributing to Competitive Advantages of International High-Speed Railway Contractors

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