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Peculiarities of Activities of Islamic Insurance Companies

Author

Listed:
  • Andriy Polchanov

    (Zhytomyr State Technological University, Zhytomyr, Ukraine)

  • Olekciy Poplavskyi

    (Zhytomyr State Technological University, Zhytomyr, Ukraine)

Abstract

The article is devoted to the theoretical and practical aspects of activities of Islamic insurance companies. The basic assumptions of the Islamic insurance model arising from religious and legal norms are considered, including 'Harare' (an element of uncertainty and ambiguity), 'meysir' (speculation and excitement), and 'fish' (usury). Based on the results of summarizing recent English publications on the subject, the organizational provision of modern takaful companies are revealed. Based on the analysis of statistical data, the peculiarities of development of insurance in the countries within the area of spread of Islam are determined. Economic growth and low insurance penetration indicate its significant potential in the region, and the allocation of funds in highly liquid and secure instruments of monetary and stock market reflects a balanced investment policy aimed at preserving the assets of takaful companies. Attention is paid to the disclosure of the essence of 'sukuk', which is a special type of securities issued pursuant to the provisions of the Islamic financial doctrine.

Suggested Citation

  • Andriy Polchanov & Olekciy Poplavskyi, 2016. "Peculiarities of Activities of Islamic Insurance Companies," Oblik i finansi, Institute of Accounting and Finance, issue 2, pages 126-130, June.
    • Handle: RePEc:iaf:journl:y:2016:i:2:p:126-130
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    More about this item

    Keywords

    investment; Islamic insurance; takaful; insurance company; financial market;
    All these keywords.

    JEL classification:

    • G22 - Financial Economics - - Financial Institutions and Services - - - Insurance; Insurance Companies; Actuarial Studies

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