Modeling and simulation to determine the optimal incentives for Islamic insurance operators in pure wakalah contract

Ningsih, Agustini Fajariyanti; Putri, Endah R. M.; Syaifudin, Wawan Hafid

doi:10.1063/5.0117817

Cited by 1 publication

(1 citation statement)

References 7 publications

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“…In the study by [58], contribution funds (premiums) paid by customers were divided into three accounts; namely, Wakalah fund accounts (administrative fees), investment fund accounts (participant funds), and Tabarru fund accounts. In contrast, in research [59], contribution funds from all customers are collected in the total premium account, which is then divided into two accounts: Wakalah fee accounts and Tabarru funds. The Wakalah fee account belongs to the manager as compensation, while the Tabarru fund account is further divided into two accounts: an investment fund account and a risk management fund account.…”

Section: Wakalah Modelmentioning

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 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: Wakalah Modelmentioning

confidence: 99%