A design of mathematical modelling for the mudharabah scheme in shariah insurance

Cahyandari, Rini; Mayaningsih, Dewi

doi:10.1088/1757-899x/166/1/012015

Cited by 5 publications

(4 citation statements)

References 1 publication

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“…Takaful funds are also used for expenses, such as underwriting costs, Retakaful, and reserves, and to pay customer claims and the underwriting surplus (if any). In the research by [13], contribution funds obtained from Islamic insurance customers were divided into two accounts: participants' accounts as savings, the funds of which are later returned to customers at the end of the insurance membership period; and participants' special accounts as Tabarru. Furthermore, the funds from each of these two accounts are invested.…”

Section: Mudharabah Modelmentioning

confidence: 99%

“…The employment of the concept of Takaful as Sharia insurance is demonstrated by the existence of several Takaful insurance companies in various countries that apply the principles of Islamic values and law. The principle developed in this Sharia insurance is that of implementing a business by obtaining halal profits through the Mudharabah system [12,13]. In Sharia insurance, the principle of Tabarru or togetherness is applied, and investors can benefit and not be harmed.…”

Section: Introductionmentioning

confidence: 99%

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

et al. 2023

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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.

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Section: Mudharabah Modelmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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

et al. 2023

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“…The first party is obliged to pay contributions (premiums) that have been determined and agreed upon (Sukono et al, 2014;Riaman et al, 2018). Whereas the second party is obliged to provide a full guarantee to the payer of premiums in this case the first party if there is a risk that befalls the first party or his property by the agreement that has been made and agreed Sukono et al, 2019a;2019b;2019c;and Cahyandari et al, 2017).…”

Section: Introductionmentioning

confidence: 99%

Analyzing the community decision making to purchase pet insurance: Case study of animal lovers in Indonesia

Susanti¹,

Ridwan²,

Riaman³

et al. 2023

10.5267/j.dsl

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This study aims to measure people's decision-making to buy their pet insurance and compare it with the amount of insurance premium rates offered. It is important due to the increase in people's income which has triggered the birth of a community of pet lovers as part of the middle-class people’s lifestyle in Indonesia. The survey data was conducted using the Stated Preference (SP) format through questionnaires and interviews to determine the public response to pet insurance premiums. The collected data were analyzed using descriptive methods, decision-making analysis was on the basis of the choice of the dichotomous Contingent Valuation Method (CVM), and logistic regression analysis. Based on the calculation analysis using the logit method shows that the ability of the public to pay pet insurance premiums is IDR289,454.54. Analysis of calculations using the Turnbull method was obtained at IDR365,000.00. The results of the WTP amount, both using the logit method and using the Turnbull method, are greater than the minimum premium amount offered which is IDR190,000.00. The results of this study indicate that the premium rates for pet insurance offered are still within reasonable limits, compared to the size of the decision-making by the animal lover community in Indonesia. This provides a very good prospect for insurance companies that have insurance products for pets in Indonesia. This study was conducted to provide empirical evidence that the decision-making of the animal lover community is greater than the premium rate for pet insurance that has been offered. Thus, this research strongly supports the development of pet insurance companies in Indonesia, which can provide pet protection to stay healthy and well looked after.

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“…The contract in this fatwa referred to a contract that does not contain gharar (fraud), maysir (gambling), usury, zhulm (persecution), risywah (bribe), illicit goods, and immorality. The concepts of development of premiums management in sharia insurance are Mudharabah, Wakala, Hybrid (Mudharabah -Wakala), dan Wakala-Waqf [2]. There are two systems for managing sharia insurance premiums i.e.…”

Section: Introductionmentioning

confidence: 99%

Calculation and Management of Premium Funds in Sharia Insurance (Ta'min, Takaful or Tadhamun)

Khotimah¹,

Mahmudi²,

Fitriyati³

2020

InPrime:Ind.Jour.Pure.Applied.Math

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This research discusses the calculation of the premium of term life-insurance based on sharia principles. The difference between the conventional method and the sharia principle is in the concept of interest rates. In this research, the concept of interest in the conventional method is replaced by the Return on Investment (ROI) that changes stochastically following the Langevin type model. The Monte-Carlo simulation is applied to generate the ROI with some initial values. On the mechanism of premium management, we apply the system without a saving element and the Al-Mudharabah relationship where the participants will get a sharing-profit of the operating surplus if they don’t make a claim until the end of the agreement period. We assume that the administrative expenses only charged in the first year. Therefore, the operating surplus will be greater after the first year. In addition, we do 20 times of Monte–Carlo simulations to generate the ROI with initial value are 7.5%, 9%, and 10%. The result shows that the annual premiums become smaller when the ROI become greater and vice versa. This is because the company get a smaller return when the initial of ROI is small. So the annual premium will be greater. The annual premium for male participants is greater than women because the rate of death of men is greater than women. The other factors that make the annual premium more expensive are length of the agreement and greater compensation.Keywords: Langevin type model, stochastic differential equation, system without a saving element, Al-Mudharabah principle, Monte–Carlo simulation. AbstrakPenelitian ini membahas mengenai perhitungan dana premi asuransi jiwa berjangka berdasarkan prinsip–prinsip syariah. Perbedaan antara metode konvensional dengan prinsip syariah adalah pada konsep tingkat bunga. Pada penelitian ini, konsep bunga digantikan dengan nilai Return on Investment (ROI) yang berubah secara stokastik mengikuti model tipe Langevin. Simulasi Monte–Carlo diterapkan untuk membangkitkan nilai ROI menggunakan beberapa nilai awal. Pada mekanisme pengelolaan dana premi, kami menerapkan sistem tanpa unsur tabungan dan hubungan Al-Mudharabah dimana peserta akan mendapatkan bagi hasil atas surplus operasional jika peserta tersebut tidak melakukan klaim sampai akhir masa perjanjian. Kami mengasumsikan bahwa biaya administrasi hanya dibebankan pada tahun pertama. Sehingga surplus operasional akan menjadi lebih besar setelah tahun pertama. Selain itu, kami melakukan 20 kali simulasi Monte–Carlo untuk membangkitkan ROI dengan nilai awal 7.5%, 9%, dan 10%. Hasil menunjukkan bahwa premi tahunan akan semakin kecil jika nilai awal dari ROI membesar dan sebaliknya. Hal ini disebabkan oleh keuntungan perusahaan yang kecil jika nilai awal ROI semakin kecil sehingga premi tahunan haruslah lebih besar. Premi tahunan untuk peserta laki-laki cenderung lebih besar daripada premi tahunan peserta wanita. Hal ini karena tingkat kematian laki-laki lebih tinggi daripada wanita. Faktor lain yang membuat premi tahunan lebih besar adalah lamanya masa kontrak asuransi dan kompensasi yang semakin besar.Kata kunci: Model tipe Langevin, persamaan diferensial stokastik, sistem tanpa unsur tabungan, prinsip Al-Mudharabah, simulasi Monte–Carlo.

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A design of mathematical modelling for the mudharabah scheme in shariah insurance

Cited by 5 publications

References 1 publication

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

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

Analyzing the community decision making to purchase pet insurance: Case study of animal lovers in Indonesia

Calculation and Management of Premium Funds in Sharia Insurance (Ta'min, Takaful or Tadhamun)

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