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Development of the Islamic insurance business in Malaysia

Muslims are prohibited from taking conventional insurance due to some forbidden elements in the conventional insurance. Given the undoubted importance of insurance for risk management, Muslim scholars suggested that Islamic insurance should be introduced to fulfil the need of Muslims. After the esta...

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Main Authors: Ab Rahman, Asmak, Mohamad, Shamsiah, Wan Ahmad, Wan Marhani, Hussin, Mohd Fauzi
Format: Conference or Workshop Item
Language:English
Published: 2011
Subjects:
HG Finance
Online Access:http://eprints.um.edu.my/12767/1/v77-241.pdf
http://eprints.um.edu.my/12767/
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spelling my.um.eprints.127672019-12-20T07:33:11Z http://eprints.um.edu.my/12767/ Development of the Islamic insurance business in Malaysia Ab Rahman, Asmak Mohamad, Shamsiah Wan Ahmad, Wan Marhani Hussin, Mohd Fauzi HG Finance Muslims are prohibited from taking conventional insurance due to some forbidden elements in the conventional insurance. Given the undoubted importance of insurance for risk management, Muslim scholars suggested that Islamic insurance should be introduced to fulfil the need of Muslims. After the establishment of the first Islamic insurance company in the Sudan, Islamic Insurance has developed rapidly all around the world. This paper aims to study the development of Islamic Insurance in Malaysia in terms of the increase in the number of takaful and retakaful companies, the development of takaful business compared to conventional insurance, developments in takaful models, and the diversified takaful plans being offered. This study utilises documentation and historical methods. The results of this study reveal that after 26 years of takaful operation in Malaysia, there are now ten takaful companies, four retakaful companies and an increasing number of takaful policies taken up by Malaysians. Malaysia also signifies its presence in the takaful market, being the second largest takaful market in the world, as its total assets of US$3.2 billion dominated 26 percent of total global takaful assets in 2009. Nevertheless, conventional insurance remains predominant in Malaysia’s insurance industry, where we can see that out of the 53.5 percent market penetration rate for both takaful and insurance, the market penetration rate for takaful was merely 10.9 percent in September 2010. 2011-06 Conference or Workshop Item PeerReviewed application/pdf en http://eprints.um.edu.my/12767/1/v77-241.pdf Ab Rahman, Asmak and Mohamad, Shamsiah and Wan Ahmad, Wan Marhani and Hussin, Mohd Fauzi (2011) Development of the Islamic insurance business in Malaysia. In: International Conference on Human and Social Science, 24-26 Jun 2011, Paris, France.
institution Universiti Malaya
building UM Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Malaya
content_source UM Research Repository
url_provider http://eprints.um.edu.my/
language English
topic HG Finance
spellingShingle HG Finance
Ab Rahman, Asmak
Mohamad, Shamsiah
Wan Ahmad, Wan Marhani
Hussin, Mohd Fauzi
Development of the Islamic insurance business in Malaysia
description Muslims are prohibited from taking conventional insurance due to some forbidden elements in the conventional insurance. Given the undoubted importance of insurance for risk management, Muslim scholars suggested that Islamic insurance should be introduced to fulfil the need of Muslims. After the establishment of the first Islamic insurance company in the Sudan, Islamic Insurance has developed rapidly all around the world. This paper aims to study the development of Islamic Insurance in Malaysia in terms of the increase in the number of takaful and retakaful companies, the development of takaful business compared to conventional insurance, developments in takaful models, and the diversified takaful plans being offered. This study utilises documentation and historical methods. The results of this study reveal that after 26 years of takaful operation in Malaysia, there are now ten takaful companies, four retakaful companies and an increasing number of takaful policies taken up by Malaysians. Malaysia also signifies its presence in the takaful market, being the second largest takaful market in the world, as its total assets of US$3.2 billion dominated 26 percent of total global takaful assets in 2009. Nevertheless, conventional insurance remains predominant in Malaysia’s insurance industry, where we can see that out of the 53.5 percent market penetration rate for both takaful and insurance, the market penetration rate for takaful was merely 10.9 percent in September 2010.
format Conference or Workshop Item
author Ab Rahman, Asmak
Mohamad, Shamsiah
Wan Ahmad, Wan Marhani
Hussin, Mohd Fauzi
author_facet Ab Rahman, Asmak
Mohamad, Shamsiah
Wan Ahmad, Wan Marhani
Hussin, Mohd Fauzi
author_sort Ab Rahman, Asmak
title Development of the Islamic insurance business in Malaysia
title_short Development of the Islamic insurance business in Malaysia
title_full Development of the Islamic insurance business in Malaysia
title_fullStr Development of the Islamic insurance business in Malaysia
title_full_unstemmed Development of the Islamic insurance business in Malaysia
title_sort development of the islamic insurance business in malaysia
publishDate 2011
url http://eprints.um.edu.my/12767/1/v77-241.pdf
http://eprints.um.edu.my/12767/
_version_ 1654960645103157248
score 13.211869

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