Innovation in the takaful industry: a strategy to expand the takaful market in Indonesia

Nugraheni, Peni; Muhammad, Rifqi

doi:10.1108/jima-08-2018-0143

Cited by 17 publications

(13 citation statements)

References 18 publications

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“…Fourth, life insurance should increase compensation rate. Finally, the Islamic insurance companies can use market, product, and process innovations as the strategies appropriate to expand the market (Nugraheni & Muhammad, 2020).…”

Section: Resultsmentioning

confidence: 99%

Market Structure and Profitability: Evidence in the Indonesian Islamic Insurance Industry

Arif

Firmansyah

2021

IJBS

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There is limited research about the relationship between market structure and profitability in the insurance industry, especially in the Islamic insurance industry. This study examines the relationship among market structure and profitability in Islamic life insurance industry in Indonesia. This research used regression with panel data for the technique of analysis. The model used in this research was the fixed effect model. The result shows that the market structure affected the profitability of Islamic life insurance industry. This result implies that the traditional hypothesis supports the performance of Islamic life insurance industry in Indonesia. However, this research shows that there is no collusive behavior in Islamic life insurance industry in Indonesia. Meanwhile, for control variables, operational efficiency has an adverse effect on the performance of Islamic life insurance industry in Indonesia.

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Section: Resultsmentioning

confidence: 99%

Market Structure and Profitability: Evidence in the Indonesian Islamic Insurance Industry

Arif

Firmansyah

2021

IJBS

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“…Low utilization of technology could cause this situation as an innovative product and family takaful company services. However, the company is expected to respond to all environmental changes and adapt to technological advances that become part of today's industrial business competition (Nugraheni and Muhammad, 2019). A survey conducted by CIBAFI (2018) shows that information technology (IT) to achieve cost efficiency and productivity ranks highest in the Global Takaful Industry Top Concerns with a score of 4.09.…”

Section: Productivity Analysis Of Family Takafulmentioning

confidence: 99%

Productivity analysis of family takaful in Indonesia and Malaysia: Malmquist productivity index approach

Sukmaningrum

Hendratmi

Rusmita

et al. 2022

JIABR

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Purpose This study aims to investigate the productivity level of family takaful in Malaysia and Indonesia from 2014 to 2019. Productivity can support corporate sustainability, which is one of the company’s goals. Design/methodology/approach The measurement of the productivity level in this study involved applying the Malmquist Productivity Index (MPI) method. The input variables used consisted of equity, total expenses and total investment. The output variables consisted of total profit and investment income. In addition, this research used the orientation of the output and intermediation. Findings Throughout the study period, the Indonesian family takaful had an average total factor productivity change (TFPCH) of about 0.945. In other words, it did not reach optimal productivity. It is more due to the low value of technological change (TECHCH). On the contrary, family takaful companies in Malaysia had called productivity, showing a TFPCH of about 1.041. Again, this is mainly due to an increase in TECHCH and efficiency change, but it is still low in pure technical efficiency change. Research limitations/implications This study focuses on factors that exist in internal takaful companies. Neither micro- nor macroeconomic variables that can affect productivity levels have been measured. In addition, this study only analyzed two countries out of the 11 countries in the Southeast Asian region. Practical implications Family takaful companies can use the productivity index as one of the bases of evaluation in managing their resources to enhance optimal output. Furthermore, the management of family takaful companies in Indonesia needs to focus more on technological innovation and delivery of services to increase productivity. Meanwhile, family takaful companies in Malaysia can maintain their technology usage and efficiency to operate productively. The government in both countries is expected to actively accelerate the growth of family takaful companies by producing regulatory products that strengthen the industry. Specifically, the government in Indonesia needs to make regulations that support technology improvement. Originality/value There is still not much research that examines family takaful’s productivity level using the MPI. The MPI is an appropriate tool to evaluate the productivity of family takaful companies. Thus, family takaful companies can improve their quality by assessing the productivity index value.

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“…They provide suitable needs to the Muslim and non-muslim consumers at once. Therefore, product innovation is important to appeal the community to buy Islamic insurance product; then it will expand the Islamic insurance market (Nugraheni & Muhammad, 2020). Islamic insurance operators need to develop a suitable product for various types of customers.…”

Section: Issues In Islamic Insurance Productmentioning

confidence: 99%

Islamic Insurance in Indonesia: Opportunities and Challenges on Developing the Industry

Maf'ula

Mi’raj

2022

JISEL

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Islamic insurance is a minor industry compared with other Islamic financial institutions in Indonesia. However, it has enormous potential to grow together with its challenges. This study aims to analyze the opportunities and challenges of the Islamic insurance industry in Indonesia. This research uses a qualitative methodology and descriptive analysis. The result summarizes that the possibilities are: domino effect from Halal Value Chain and other development of government-owned enterprises; digitalization in Islamic Finance; and potential market of micro takaful. The challenges are needing a set regulatory framework as a catalyst to force supply and demand; market penetration is low, issues of Islamization insurance and the inadequate development of Islamic insurance products, limited retakaful company and qard hassan fund issue in retakaful.

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Innovation in the takaful industry: a strategy to expand the takaful market in Indonesia

Cited by 17 publications

References 18 publications

Market Structure and Profitability: Evidence in the Indonesian Islamic Insurance Industry

Market Structure and Profitability: Evidence in the Indonesian Islamic Insurance Industry

Productivity analysis of family takaful in Indonesia and Malaysia: Malmquist productivity index approach

Islamic Insurance in Indonesia: Opportunities and Challenges on Developing the Industry

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