IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v15y2023i10p8130-d1148772.html
   My bibliography  Save this article

The Development of Sharia Insurance and Its Future Sustainability in Risk Management: A Systematic Literature Review

Author

Listed:
  • Rini Cahyandari

    (Department of Mathematics, Faculty of Science and Technology, UIN Sunan Gunung Djati, Bandung 40614, Indonesia)

  • Kalfin

    (Doctoral Program of Mathematics, Faculty of Mathematics and Natural Sciences, Universitas Padjadjaran, Sumedang 45363, Indonesia)

  • Sukono

    (Department of Mathematics, Faculty of Mathematics and Natural Sciences, Universitas Padjadjaran, Sumedang 45363, Indonesia)

  • Sri Purwani

    (Department of Mathematics, Faculty of Mathematics and Natural Sciences, Universitas Padjadjaran, Sumedang 45363, Indonesia)

  • Dewi Ratnasari

    (Study Program of German Literature, Faculty of Cultural Sciences, Universitas Padjadjaran, Sumedang 45363, Indonesia)

  • Titin Herawati

    (Department of Fisheries, Faculty of Fisheries and Marine Science, Universitas Padjadjaran, Sumedang 45363, Indonesia)

  • Sutiono Mahdi

    (Study Program of English Literature, Faculty of Cultural Sciences, Universitas Padjadjaran, Sumedang 45363, Indonesia)

Abstract

The need for Sharia insurance products in the Muslim community continues to significantly increase. Sharia insurance offers sustainability in overcoming the risk of economic loss based on the principles of Islamic law. In addition, Sharia insurance can be a sustainable solution in providing risk management funds. This study aimed to analyze the development and sustainability of Islamic insurance as an alternative form of risk management, as well as its sustainability in the future. The general review is still in the form of the products offered and operational system models in the Sharia insurance industry. The systematic literature review method was used to obtain a visualization and general description of Islamic insurance, employing 774 data articles from 2010 to 2022. From the results of the analysis, it was found that research discussing Islamic insurance has demonstrated significant developments every year. Mitigating risks by offering the principles of Islamic law represents added value for the Islamic insurance industry. In addition, five models of Sharia insurance systems have been introduced and used; namely, the Mudharabah model, the modified Mudharabah model, the Wakalah model, the hybrid model, and the Waqf model. However, the products offered in Sharia insurance are not too numerous and are still focused on individual risk. Based on these results, Sharia insurance will undergo development in the future in terms of both the products offered and risk management. Of course, it can also lead to a transition to the development of sustainable Sharia insurance.

Suggested Citation

  • Rini Cahyandari & Kalfin & Sukono & Sri Purwani & Dewi Ratnasari & Titin Herawati & Sutiono Mahdi, 2023. "The Development of Sharia Insurance and Its Future Sustainability in Risk Management: A Systematic Literature Review," Sustainability, MDPI, vol. 15(10), pages 1-23, May.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:10:p:8130-:d:1148772
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/15/10/8130/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/15/10/8130/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Mansur Ahmed Kazaure & Addul Rashid Abdullah, 2019. "The Microenterprising Size And Acceptance Of Islamic Health Insurance (Takaful) In Northwestern Nigeria," Bulletin of Monetary Economics and Banking, Bank Indonesia, vol. 5(3), pages 1-18.
    2. Fares Djafri & Kamaruzaman Bin Noordin & Kamil Naail Mohammed, 2018. "The measurement model of performance determinants," International Journal of Ethics and Systems, Emerald Group Publishing Limited, vol. 34(2), pages 166-185, May.
    3. Kalfin & Sukono & Sudradjat Supian & Mustafa Mamat, 2022. "Insurance as an Alternative for Sustainable Economic Recovery after Natural Disasters: A Systematic Literature Review," Sustainability, MDPI, vol. 14(7), pages 1-18, April.
    4. Hayat Khan, 2019. "A Nontechnical Guide on Optimal Incentives for Islamic Insurance Operators," JRFM, MDPI, vol. 12(3), pages 1-14, July.
    5. repec:idn:jimfjn:v:5:y:2019:i:3d:p:1-28 is not listed on IDEAS
    6. Adnan Zikri Jaafar & Marc Brightman, 2022. "From Structure to Purpose: Green and Social Narratives, and the Shifting Morality of Islamic Finance in Kuala Lumpur," Sustainability, MDPI, vol. 14(9), pages 1-17, April.
    7. Muhammad Safdar Sial & Jacob Cherian & Abdelrhman Meero & Asma Salman & Abdul Aziz Abdul Rahman & Sarminah Samad & Constantin Viorel Negrut, 2022. "Determining Financial Uncertainty through the Dynamics of Sukuk Bonds and Prices in Emerging Market Indices," Risks, MDPI, vol. 10(3), pages 1-13, March.
    8. Grira, Jocelyn & Labidi, Chiraz, 2021. "Banks, Funds, and risks in islamic finance: Literature & future research avenues," Finance Research Letters, Elsevier, vol. 41(C).
    9. Aida Yuzi Yusof & Wee-Yeap Lau & Ahmad Farid Osman, 2016. "A Critical Analysis of the Malaysian Risk-Based Capital Framework: A Comparison between General Insurance and Takaful," Institutions and Economies (formerly known as International Journal of Institutions and Economies), Faculty of Economics and Administration, University of Malaya, vol. 8(4), pages 23-41, October.
    10. repec:uii:jcauii:v:1:y:2019:i:3:p:161-172 is not listed on IDEAS
    11. Naseem Al Rahahleh & M. Ishaq Bhatti & Faridah Najuna Misman, 2019. "Developments in Risk Management in Islamic Finance: A Review," JRFM, MDPI, vol. 12(1), pages 1-22, February.
    12. Akhter, Waheed & Pappas, Vasileios & Khan, Saad Ullah, 2017. "A comparison of Islamic and conventional insurance demand: Worldwide evidence during the Global Financial Crisis," Research in International Business and Finance, Elsevier, vol. 42(C), pages 1401-1412.
    13. Maria Safdar, 2023. "Determinants Of Takaful Business In Pakistan And Malaysia: An Empirical Analysis," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 12(1), pages 36-55.
    14. Yuni Nustini & Ahmad Rijal Amiruddin, 2019. "Altman model for measuring financial distress: Comparative analysis between sharia and conventional insurance companies," Journal of Contemporary Accounting, Master in Accounting Program, Faculty of Business & Economics, Universitas Islam Indonesia, Yogyakarta, Indonesia, vol. 1(3), pages 161-172.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Kalfin & Sukono & Sudradjat Supian & Mustafa Mamat, 2023. "Model for Determining Insurance Premiums Taking into Account the Rate of Economic Growth and Cross-Subsidies in Providing Natural Disaster Management Funds in Indonesia," Sustainability, MDPI, vol. 15(24), pages 1-15, December.
    2. Wang Tong & Muhammad Ali & Chin-Hong Puah & Choi-Meng Leong & Xiao Yuping, 2024. "Islamic insurance: a review and research agenda," Journal of Financial Services Marketing, Palgrave Macmillan, vol. 29(4), pages 1464-1486, December.
    3. Rini Cahyandari & Sukono & Riaman & Nurnadiah Zamri, 2025. "Model of Discrete-Time Surplus Process for Scheme of Productive Waqf Integration with Sustainable Fishermen’s Welfare Benefits Based on Several Threshold Levels: Systematic Literature Review," Sustainability, MDPI, vol. 17(2), pages 1-25, January.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Dila Puspita & Adam Kolkiewicz & Ken Seng Tan, 2020. "Discrete Time Ruin Probability for Takaful (Islamic Insurance) with Investment and Qard-Hasan (Benevolent Loan) Activities," JRFM, MDPI, vol. 13(9), pages 1-24, September.
    2. Ghulam Ghouse & Aribah Aslam & Muhammad Ishaq Bhatti, 2021. "Role of Islamic Banking during COVID-19 on Political and Financial Events: Application of Impulse Indicator Saturation," Sustainability, MDPI, vol. 13(21), pages 1-17, October.
    3. Wang Tong & Muhammad Ali & Chin-Hong Puah & Choi-Meng Leong & Xiao Yuping, 2024. "Islamic insurance: a review and research agenda," Journal of Financial Services Marketing, Palgrave Macmillan, vol. 29(4), pages 1464-1486, December.
    4. Billah, Mabruk & Hadhri, Sinda & Balli, Faruk & Sahabuddin, Mohammad, 2024. "Exploring the dynamic links, implications for hedging and investment strategies between Sukuk and commodity market volatility: Evidence from country level analysis," International Review of Economics & Finance, Elsevier, vol. 93(PA), pages 350-371.
    5. Toufiq Nazrul & Rania Mousa, 2025. "Executive Religiosity and Disclosure Tone Ambiguity of Annual Reports," JRFM, MDPI, vol. 18(2), pages 1-19, January.
    6. Hasnie, Syed Sharjeel Ahmad & Collazzo, Pablo & Hassan, M. Kabir, 2022. "Risk assessment of equity-based conventional and islamic stock portfolios," The Quarterly Review of Economics and Finance, Elsevier, vol. 85(C), pages 363-378.
    7. Rym Charef El ANSARI & Riadh El ABED, 2020. "The dependence and dynamic correlation between Islamic and conventional insurances and stock market: A multivariate short memory approach," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania / Editura Economica, vol. 0(3(624), A), pages 213-222, Autumn.
    8. Andrea Delle Foglie & Gianni Pola, 2021. "Make the Best from Comparing Conventional and Islamic Asset Classes: A Design of an All-Seasons Combined Portfolio," JRFM, MDPI, vol. 14(10), pages 1-17, October.
    9. Anthony Asher & Tracy Wilcox, 2022. "Virtue and Risk Culture in Finance," Journal of Business Ethics, Springer, vol. 179(1), pages 223-236, August.
    10. Jardine A. Husman & Ali Sakti & Dahnila Dahlan & Imam Wahyudi Indrawan & Zaäfri A. Husodo & Nur Dhani Hendranastiti & Muhammad Budi Prasetyo & Wahyu Jatmiko, 2022. "On The Development Of The Islamic Benchmark Rate: An Indonesian Case," Working Papers WP/04/2022, Bank Indonesia.
    11. Riza Andrian Ibrahim & Sukono & Herlina Napitupulu & Rose Irnawaty Ibrahim, 2023. "How to Price Catastrophe Bonds for Sustainable Earthquake Funding? A Systematic Review of the Pricing Framework," Sustainability, MDPI, vol. 15(9), pages 1-19, May.
    12. Sunday S. Akpan & Fauziah Mahat & Bany-Ariffin Noordin & Annuar Nassir, 2017. "Contrasting the Effect of Risk- and Non Risk-Based Capital Structure on Insurers’ Performance in Nigeria," Social Sciences, MDPI, vol. 6(4), pages 1-17, November.
    13. Ghulam Nabi & Ramiz ur Rehman & Rizwan Ali & Atif Jadoon, 2024. "Persistence of multidimensional time‐varying skills of fund managers: A comparison of conventional and Islamic equity funds," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 45(2), pages 880-895, March.
    14. Mohamed Al Hammadi & Juan Antonio Jimber-Del Río & María Salomé Ochoa-Rico & Orlando Arencibia Montero & Arnaldo Vergara-Romero, 2024. "Risk Management in Islamic Banking: The Impact of Financial Technologies through Empirical Insights from the UAE," Risks, MDPI, vol. 12(2), pages 1-15, January.
    15. Alshammari, Ahmad Alrazni & Syed Jaafar Alhabshi, Syed Musa bin & Saiti, Buerhan, 2019. "The impact of competition on cost efficiency of insurance and takaful sectors: Evidence from GCC markets based on the Stochastic Frontier Analysis," Research in International Business and Finance, Elsevier, vol. 47(C), pages 410-427.
    16. Shome, Samik & Hassan, M. Kabir & Verma, Sushma & Panigrahi, Tushar Ranjan, 2023. "Impact investment for sustainable development: A bibliometric analysis," International Review of Economics & Finance, Elsevier, vol. 84(C), pages 770-800.
    17. repec:uii:jcauii:v:2:y:2020:i:2:p:72-80 is not listed on IDEAS
    18. Ameni Ghenimi & Hasna Chaibi & Mohamed Ali Omri, 2024. "Risk and performance of Islamic and conventional banks under COVID-19 pandemic: Evidence from MENA region," Arab Gulf Journal of Scientific Research, Emerald Group Publishing Limited, vol. 42(4), pages 1788-1804, January.
    19. Intekhab Alam & Pouya Seifzadeh, 2020. "Marketing Islamic Financial Services: A Review, Critique, and Agenda for Future Research," JRFM, MDPI, vol. 13(1), pages 1-19, January.
    20. Erfanian, Azadeh & Ariff, Mohamed & Bhatti, M. Ishaq, 2024. "Market tempo: Decoding information speed across global stock markets," International Review of Economics & Finance, Elsevier, vol. 96(PB).
    21. Ghaemi Asl, Mahdi & Nasr Isfahani, Mohammad & Mohammadi, Mahsa, 2024. "How does the mineral resource exploitation sector interact with Islamic and traditional ventures? Insights amidst the impact of green reforms and state-of-the-art technological advancements," Resources Policy, Elsevier, vol. 98(C).

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:15:y:2023:i:10:p:8130-:d:1148772. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.