Source of Funds and Islamic Insurance Growth: Investment Returns as a Mediation

Rahmanto, Dhidhin Noer Ady; Fasa, Muhammad Iqbal; Rijal, Khoirul

doi:10.26740/al-uqud.v4n1.p104-114

Cited by 1 publication

(1 citation statement)

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“…Investment profit (at the gross income level) displays a definite upward trend for all takaful operators, including the industry "newbies", even if they are yet to record any net profit since inception. This reflects two important points discussed in the previous section: investment earnings are tagged to the products offered (due to the products' features); and concentration or focus on selling certain types of takaful products will influence the trend in investment profit (Rahmanto et al, 2020). Table 2 reports the investment profits for each takaful operator in Malaysia, segregated into the family or general takaful business, as per the companies' annual reports for the last five years.…”

Section: Takaful Operators' Investment Profitsmentioning

confidence: 94%

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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Section: Takaful Operators' Investment Profitsmentioning

confidence: 94%