takaful – Jurnal Pengurusan

Corporate Social Responsibility and Market Orientation: An Integrated Approach Towards Organizational Performance

khairul23 — Sat, 15 Oct 2022 10:48:40 +0000

Takaful operators in countries dominated by Muslim are still experiencing low penetration rate. New emerging customer segments have higher expectation where Takaful operators need more innovative approaches in acquiring and retaining customers. Moreover, Takaful companies need to apply marketing, societal and entrepreneurial concept to make the industry more competitive. Although many Islamic banking and Takaful studies have been conducted, empirical Takaful research is still limited. Therefore, the primary focus of this study is to empirically investigate the influence of market orientation and corporate social responsibility (cSR) towards Takaful agencies’ organizational performance in Malaysia. The first phase of the study involved refinement of cSR measurement items by performing exploratory factor analysis (EFA), where a new dimension was identified. The second phase of study was to test the hypotheses by employing all items adopted from past studies including the refined cSR measures. PLS-SEM analysis involving a two-step approach on 211 valid data shows co-adoption of cSR and market orientation influences organizational performance.

Tadbir Urus Syariah dalam Industri Takaful di Malaysia: Implikasi Pasca Akta Perkhidmatan Kewangan Islam 2013

Amirulilul — Tue, 11 Oct 2022 07:50:52 +0000

Takaful industry was first introduced into Malaysia about 30 years ago when the first takaful operator was established to fulfil the need of the Muslim community to be protected based on the Islamic principles.Takaful operations are regulated and supervised by BNM and various changes have been made to ensure the strengthening and stability of the takaful industry including the shariah governance legislation. The aim of this paper is to analyze the legal provisions of Central Bank of Malaysia Act 2009 and Islamic Financial Services Act 2013 in terms of shariah governance in takaful industry at Malaysia. This study interviewed seven informants comprising officers from the Department of Shariah and Shariah Committee of Takaful Company (SPT), which have involved directly in the shariah governance process of takaful industry. The findings indicate that the legal provisions of Islamic Financial Services Act 2013 have given positive implication for shariah governance of takaful industry since the legal provisions are clear and detailed such as the role of the SAC of BNM and the SC of Takaful Operators.

Islamic Intellectual Capital and Takaful Financial Performance

apriyaliwahab — Mon, 10 Oct 2022 02:03:06 +0000

This study examines the effect of Islamic intellectual capital that consists of Structural Capital, Human Capital, and Capital Employed on takaful financial performance in Southeast Asia and the Middle East during 2016-2019. The dependent variable, takaful financial performance, is measured from the firm’s ROE. The independent variables in the current study are the Human Capital Efficiency (HCE), Structural Capital Efficiency (SCE), and Capital Employed Efficiency (CEE), and Audit Opinion used as a control variable. This study is a descriptive quantitative research using multiple linear regression analysis. The population of this study is the sharia insurance firms in Southeast Asia and Middle East countries with a total of 155 observations. This study shows that, two out of three variables are significant. Structural Capital Efficiency has a positive and significant effect, Capital Employed Efficiency has a negative and significant impact, and the Human Capital Efficiency has no significant effect on takaful financial performance. This study can be used as a reference, evaluation, and source of improvement for sharia insurance firms in optimizing the Islamic intellectual capital to improve the firm’s financial performance. To achieve this objective, companies could improve employees’ knowledge on sharia regulations, especially regarding sharia insurance, training, fulfilling employee’s rights, improving system quality, services, and transaction procedures.

Corporate Social Responsibility for Takaful Industry’s Branding Image

amrularshad — Sun, 09 Oct 2022 15:19:09 +0000

This study attempts to confirm the likelihood of Corporate Social Responsibility (CSR) activities giving different effects on brand image components and whether corporate reputation mediates these effects. Four action-based types of CSR, namely the economic, legal, ethical and philanthropic, were analyzed and tested in this study. This study employs quantitative method of analysis whereby the participants were exposed to different treatments and the brand image was divided into an affective, specific and generic cognitive elements. A total of 327 (N = 2110) stakeholders of Takaful; the agents/ operators in Kuala Terengganu, Malaysia were involved. Using the Structural Equation Model analysis, the affective component of the brand image showed a greater impact on the commitment towards the four types of CSR as compared to the others. The results revealed that the economic and philanthropic CSR activities significantly led to a more positive level of both brand image components and corporate reputation management than legal and ethical CSR activities. In addition, brand image has positively influenced the betterment of corporate reputation management. These findings have significant implications for future research directions in the corporate communication perspective.

The Effect of Entrepreneurial Orientation Dimensions on Takaful Agency’s Business Performance in Malaysia

Nur_161 — Sat, 08 Oct 2022 18:47:25 +0000

This study aimed to examine the relationship among the five dimensions of entrepreneurial orientations (innovativeness, risk taking, autonomy, competitive aggressiveness, and proactiveness) and performance of Takaful agencies in Malaysia. A total of 211 questionnaires were collected via purposive sampling from Takaful agency’s managers from three main Takaful operators namely Etiqa, Takaful Malaysia and Takaful Ikhlas. A structural equation model that assessed the relationship between the proposed variables was tested using PLS 2.0. The findings revealed that out of the five dimensions of entrepreneurial orientation, proactiveness and autonomy were found to have significant influence on business performance.

Nomination of Insurance Policy for Singaporean Muslims

syazwinaramjan — Sat, 08 Oct 2022 15:56:15 +0000

The permissibility of a revocable nomination of insurance policies is the recent fatwa issued by the Fatwa Committee of Islamic Religious Council of Singapore (MUIS). This validation is derived by making an analogy between hibah and its revocable nomination. The fatwa has been changed with the aim to harmonise the Syariah law with Insurance Act S49L and simplify the estate administration and distribution process for Singaporean Muslims. In Malaysia, hibah of takaful benefits has been employed by the takaful providers and the operational framework varies across these takaful providers. Hibah of takaful benefits has been in operation for sometime in the absence of fatwa that validates the operational framework of this product at the national level. This study aims to explore the revocable nomination of insurance policies for Muslims in Singapore by means of semi-structured interviews and content analysis on secondary data namely statutes and fatwas. This study finds that the purpose of this fatwa amendment is to reinforce the method used to meet the objective of Islamic estate planning of Muslims’ domicile in Singapore taking into account that civil law supersedes the Islamic law. Fatwa issued in Singapore also applies to takaful funds but the fatwa treats both accounts in takaful funds similarly. Unlike Malaysia, the heritability of tabarru’ funds in takaful is still debatable. The fatwa is non-binding and thus, it raises the concern of a conflict existing between the existing laws and this fatwa which finally challenges the extent to which the fatwa is applicable. The current fatwa has received various feedbacks from the Islamic estate planners in Singapore and the suggestion of considering an additional legal document for the so-called ‘contemporary hibah’ is also highlighted. This study suggests that both countries benefit can from each other’s practice.

Determinants of Customer Satisfaction in Takaful (Islamic Insurance) Services in Malaysia

Nazira Adnan — Sat, 08 Oct 2022 08:59:00 +0000

This study investigates the pertinent components of satisfaction variables that could help the Takaful Insurance to identify and prioritise ways to gain customers. The study employed a quantitative research approach by conducting surveys through questionnaires to respondents from two universities in Malaysia. The findings from the research proved that service quality and the role of agents are significant towards the determinants of customer satisfaction in Takaful insurance services. However, the performances of the takaful operators are found to be insignificant to the service quality. In conclusion, takaful operators need to improve and strengthen their service quality and the role of their agents as well. As for the performance of these takaful operators, customers do not rely much on it, and takaful operators should not concentrate much on this factor while offering their services.

Aplikasi Skor-Z Altman dalam Menganggar Kesolvenan Pengendali Takaful di Malaysia

sufizulkarnain01 — Sat, 08 Oct 2022 06:30:23 +0000

This study aims to calculate the level of solvency of takaful operators in Malaysia using the Altman Z-Score. Several solvency estimators, including Margin of Solvency [MOS], Risk-Based Capital [RBC], Claims Paying Ability [CPA] and CAMEL rating, have been developed and applied in the industry. The problems of asymmetric information which are inherent in the insurance (takaful) have at the same time caused the information resulted from these measurements to be more closed and secretive. As a result, consumers and policyholders do not have the information about the solvency of insurers and takaful operators in the market which may help them make the right choice for protection. This study will identify the level of solvency of takaful operators in Malaysia within a period of three years starting from the year 2012 to 2014. In addition, takaful operators will also be ranked based on solvency’s scores obtained. The solvency score in this study is based on the four ratios considered under The Altman Z-Score (non-manufacturing). The results showed that on average, takaful operators were at the level of ‘alert’ for the year 2012 and 2013. For year 2014, result showed that takaful operators were at a ‘bad’ level. Further, the rank was based on the scores obtained. For year 2012, Takaful AmFamily Ltd. was ranked at the top while Syarikat Takaful Malaysia Bhd was ranked at the bottom. Meanwhile, for year 2013, Hong Leong MSIG Takaful Bhd was at the highest rank while the lowest rank was Syarikat Takaful Malaysia Bhd. HSBC Amanah Takaful Sdn Bhd was ranked as the first in 2014 and Takaful Ikhlas Sdn Bhd. was ranked as the last. Overall, the foreign takaful operator performed better than the local takaful operator. The result obtained from this study was expected to provide information to respected parties such as public and takaful operators with regards to the possibility of facing the solvency problem and rank of each takaful operator over the other. For public, the solvencies score can be made as a reference in term of selecting a takaful operator before any decision is being made to purchase the takaful plan. Meanwhile, in the position of takaful industry, takaful operator who has a good solvency’s scoring and a good rank can be referred to as a company with best practices over the other.