IDEAS home Printed from https://ideas.repec.org/a/rfh/bbejor/v12y2023i1p36-55.html
   My bibliography  Save this article

Determinants Of Takaful Business In Pakistan And Malaysia: An Empirical Analysis

Author

Listed:
  • MARIA SAFDAR

    (Lecturer, Department of Economics, University of Sahiwal, Pakistan)

Abstract

A theoretical demand for Takaful business is observed in Malaysia and Pakistan as per the research of this study. This is evidence that the people of Malaysian and Pakistan have become financially more sophisticated and more determined to invest in a business that fulfills the requirement of Shariah laws. The ethical nature of the Islamic finance product Takaful is going to be more attractive to both Muslims and non-Muslims as well. It is prominent from this research that the potential demand for Takaful products is very good and the Takaful Industry is now becoming the rival competitor of conventional insurance. The Global Takaful business is smaller as compared to the conventional insurance business. Therefore the Islamic finance product Takaful needs to gain worldwide brand recognition and surpass the performance standard set by the conventional insurance business industry. It is nice to note that Takaful business operators are increasingly starting to realize that the ethical guidelines and transparency of their products underpin their offering appeal to potential individuals regardless the Muslim or non-Muslim discrimination. The Takaful business is becoming a fast-developing business and penetrating a stable development phase. In several Muslim countries, national regulators have enacted a Takaful framework for the Takaful insurance industry. Malaysia & Bahrain are leading examples among Muslim countries of having progressive Takaful regulation. In the last few years, Saudi Arabia & Pakistan have also established regulatory frameworks for Takaful business. It is very optimistic to note that the government of Bangladesh is actively considering enacting a separate Takaful Act also. This will certainly help to grow the emerging Takaful insurance industry round the globe.

Suggested Citation

  • 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.
    • Handle: RePEc:rfh:bbejor:v:12:y:2023:i:1:p:36-55
    DOI: https://doi.org/10.5281/zenodo.7718715
    as

    Download full text from publisher

    File URL: https://bbejournal.com/BBE/article/view/424/342
    Download Restriction: no
    File URL: https://bbejournal.com/BBE/article/view/424
    Download Restriction: no
    File URL: https://libkey.io/https://doi.org/10.5281/zenodo.7718715?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Ramin Cooper Maysami & John Joseph Williams, 2006. "Evidence on the relationship between Takaful insurance and fundamental perception of Islamic principles," Applied Financial Economics Letters, Taylor & Francis Journals, vol. 2(4), pages 229-232.
    2. Adel Ahmed, 2010. "Global financial crisis: an Islamic finance perspective," International Journal of Islamic and Middle Eastern Finance and Management, Emerald Group Publishing Limited, vol. 3(4), pages 306-320, November.
    3. Menahem E. Yaari, 1965. "Uncertain Lifetime, Life Insurance, and the Theory of the Consumer," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 32(2), pages 137-150.
    4. Adel Ahmed, 2010. "Global financial crisis: an Islamic finance perspective," International Journal of Islamic and Middle Eastern Finance and Management, Emerald Group Publishing Limited, vol. 3(4), pages 306-320, November.
    5. repec:eme:hppsss:v:26:y:2010:i:4:p:284-295 is not listed on IDEAS
    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. 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.

    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. Raheem, Ibrahim D. & le Roux, Sara & Rehman, Mobeen Ur, 2024. "Oil shocks and the Islamic financial market: Evidence from a causality-in-quantile approach," International Economics, Elsevier, vol. 180(C).
    2. Maria Bhatti & Muhammad Shujaat Saleem & Fadillah Mansor, 2025. "Need for reform in AAOIFI standards on murabaha financing: evidence from Islamic Banks in Pakistan," Quality & Quantity: International Journal of Methodology, Springer, vol. 59(1), pages 59-78, February.
    3. Hassan, Kamrul & Hoque, Ariful & Gasbarro, Dominic & Wong, Wing-Keung, 2023. "Are Islamic stocks immune from financial crises? Evidence from contagion tests," International Review of Economics & Finance, Elsevier, vol. 86(C), pages 919-948.
    4. Ghaemi Asl, Mahdi & Ben Jabeur, Sami & Hosseini, Seyedeh Sana & Tajmir Riahi, Hamed, 2024. "Fintech's impact on conventional and Islamic sustainable equities: Short- and long-term contributions of the digital financial ecosystem," Global Finance Journal, Elsevier, vol. 62(C).
    5. Mengyuan Zhou, 2022. "Does the Source of Inheritance Matter in Bequest Attitudes? Evidence from Japan," Journal of Family and Economic Issues, Springer, vol. 43(4), pages 867-887, December.
    6. An Chen & Thai Nguyen & Thorsten Sehner, 2022. "Unit-Linked Tontine: Utility-Based Design, Pricing and Performance," Risks, MDPI, vol. 10(4), pages 1-27, April.
    7. Frédéric Gannon & Vincent Touzé, 2006. "Insurance and Optimal Growth," Post-Print halshs-00085181, HAL.
    8. Axel Börsch‐Supan & Alexander Ludwig & Joachim Winter, 2006. "Ageing, Pension Reform and Capital Flows: A Multi‐Country Simulation Model," Economica, London School of Economics and Political Science, vol. 73(292), pages 625-658, November.
    9. Paul Beaudry & Katsiaryna Kartashova & Césaire A Meh, 2022. "Gazing at r*: A Hysteresis Perspective," RBA Annual Conference Papers acp2022-08, Reserve Bank of Australia, revised Dec 2022.
    10. Brito Paulo & Marini Giancarlo & Piergallini Alessandro, 2016. "House prices and monetary policy," Studies in Nonlinear Dynamics & Econometrics, De Gruyter, vol. 20(3), pages 251-277, June.
    11. Hirte Georg, 2002. "Welfare and Macroeconomic Effects of the German Pension Acts of 1992 and 1999: A Dynamic CGE Study," German Economic Review, De Gruyter, vol. 3(1), pages 81-106, February.
    12. D. Dragone & H. Strulik, 2017. "Human Health and Aging over an Infinite Time Horizon," Working Papers wp1104, Dipartimento Scienze Economiche, Universita' di Bologna.
    13. Wrzaczek, Stefan & Kuhn, Michael & Prskawetz, Alexia & Feichtinger, Gustav, 2010. "The reproductive value in distributed optimal control models," Theoretical Population Biology, Elsevier, vol. 77(3), pages 164-170.
    14. Joan Costa-Font & Cristina Vilaplana-Prieto, 2022. "Biased survival expectations and behaviours: Does domain specific information matter?," Journal of Risk and Uncertainty, Springer, vol. 65(3), pages 285-317, December.
    15. Eytan Sheshinski, 2005. "Longevity and Aggregate Savings," Discussion Paper Series dp403, The Federmann Center for the Study of Rationality, the Hebrew University, Jerusalem.
    16. Jeremy Greenwood & Nezih Guner, 2009. "Marriage and Divorce since World War II: Analyzing the Role of Technological Progress on the Formation of Households," NBER Chapters, in: NBER Macroeconomics Annual 2008, Volume 23, pages 231-276, National Bureau of Economic Research, Inc.
    17. Pliska, Stanley R. & Ye, Jinchun, 2007. "Optimal life insurance purchase and consumption/investment under uncertain lifetime," Journal of Banking & Finance, Elsevier, vol. 31(5), pages 1307-1319, May.
    18. Jason S. Scott & John B. Shoven & Sita N. Slavov & John G. Watson, 2022. "Is automatic enrollment consistent with a life cycle model?," Economic Inquiry, Western Economic Association International, vol. 60(1), pages 9-20, January.
    19. Nakata, Taisuke & Ogaki, Ryota & Schmidt, Sebastian & Yoo, Paul, 2019. "Attenuating the forward guidance puzzle: Implications for optimal monetary policy," Journal of Economic Dynamics and Control, Elsevier, vol. 105(C), pages 90-106.
    20. Hippolyte d’Albis & Ikpidi Badji, 2017. "Intergenerational inequalities in standards of living in France," Economie et Statistique / Economics and Statistics, Institut National de la Statistique et des Etudes Economiques (INSEE), issue 491-492, pages 71-92.

    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:rfh:bbejor:v:12:y:2023:i:1:p:36-55. 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: Dr. Muhammad Irfan Chani (email available below). General contact details of provider: https://edirc.repec.org/data/rffhlpk.html .

    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.