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Pergulatan Asuransi Syariah di Indonesia
[The Struggling of Sharia Insurance in Indonesia]

Author

Listed:
  • Nizar, Muhammad Afdi

Abstract

This paper aims to examine the struggle for shari'ah insurance in Indonesia. By using a qualitative-descriptive approach and time series data in the period 2010 - 2017, it is known that the struggle for sharia insurance in the national insurance market is indeed not easy. This is indicated in a number of indicators, namely (i) minimal regulatory and regulatory support; (ii) institutional support indicated by the relatively small number of insurance companies; (iii) asset development, although the growth is quite high, the value is still far below conventional insurance assets; (iii) ability to fulfill claims from Islamic insurance contribution funds is still low; (iv) with a limited portfolio choice, sharia insurance investments are still profitable (profitable investments); and (v) sharia insurance density and penetration are still far below conventional insurance. Shari'ah insurance struggle in the future is certainly more difficult because it must be able to win the opportunities that exist amid various challenges that also accompany it.

Suggested Citation

  • Nizar, Muhammad Afdi, 2018. "Pergulatan Asuransi Syariah di Indonesia [The Struggling of Sharia Insurance in Indonesia]," MPRA Paper 97955, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:97955
    as

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    File URL: https://mpra.ub.uni-muenchen.de/97955/1/MPRA_paper_97955.pdf
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    References listed on IDEAS

    as
    1. Marco Arena, 2008. "Does Insurance Market Activity Promote Economic Growth? A Cross‐Country Study for Industrialized and Developing Countries," Journal of Risk & Insurance, The American Risk and Insurance Association, vol. 75(4), pages 921-946, December.
    2. Nizar, Muhammad Afdi, 2016. "Hubungan Asuransi dan Pertumbuhan Ekonomi di Indonesia [Relationship between Insurance and Economic Growth in Indonesia]," MPRA Paper 97928, University Library of Munich, Germany.
    3. Lee, Chien-Chiang & Lee, Chi-Chuan & Chiu, Yi-Bin, 2013. "The link between life insurance activities and economic growth: Some new evidence," Journal of International Money and Finance, Elsevier, vol. 32(C), pages 405-427.
    4. Feyen, Erik & Lester, Rodney & Rocha, Roberto, 2011. "What drives the development of the insurance sector ? an empirical analysis based on a panel of developed and developing countries," Policy Research Working Paper Series 5572, The World Bank.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    conventional insurance; investment fund; risk fund; gharar; maysir; riba; takaful; ta’awun;
    All these keywords.

    JEL classification:

    • A13 - General Economics and Teaching - - General Economics - - - Relation of Economics to Social Values
    • C81 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Methodology for Collecting, Estimating, and Organizing Microeconomic Data; Data Access
    • G22 - Financial Economics - - Financial Institutions and Services - - - Insurance; Insurance Companies; Actuarial Studies
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill

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