Islamic insurance and sustainable development goals in developing countries
A systematic literature review
Keywords:
Islamic Insurance, Takaful, Developing Countries, Sustainable Development Goals, Social WelfareAbstract
We employed an inclusion criterion to pick research articles that specifically addressed the topic of Islamic insurance in developing countries. Conversely, an exclusion criterion was eliminated for those exploring the concept of Islamic developing countries without delving into Islamic insurance. 27 research articles published between 2018 and 2023 were obtained from Scopus. Thematic analysis was employed for data synthesis by narrative approach, wherein the findings were categorized based on their association with Islamic insurance and the SDGs outlined by the UN. This study reveals that Islamic insurance in developing countries is crucial in advancing the SDGs while contributing substantially to welfare. Furthermore, it is acknowledged that Islamic insurance enhancement for the SDGs necessitates substantial backing from the government, regulators, and affiliated organizations.
Downloads
References
Abdullah, Z. (2018). An Analysis of Factors Affecting Indonesian Islamic Insurance Investment Growth. Journal of Islamic Economics Lariba, 4(2), 71–81.
Abdur Rehman, M., Osman, I., Aziz, K., Koh, H., & Awais, M. (2020). Get connected with your Takaful representatives: Revisiting customer loyalty through relationship marketing and service quality. Journal of Islamic Marketing, 11(5), 1175–1200. https://doi.org/10.1108/JIMA-06-2019-0122
Ahmad, S. M., & Mahadi, N. F. (2019). Sustainable Development Goals and the role of Islamic finance. Proceedings of the 1st Kedah International Zakat Conference 2019 (KEIZAC 2019), May, 698–708. http://blogs.worldbank.org/eastasiapacific/sustainable-development-goals-and-role-islamic-finance
Ali, M. M., Devi, A., Furqani, H., & Hamzah, H. (2020). Islamic financial inclusion determinants in Indonesia: an ANP approach. International Journal of Islamic and Middle Eastern Finance and Management, 13(4), 727–747. https://doi.org/10.1108/IMEFM-01-2019-0007
Ali, M., Raza, S. A., Puah, C. H., & Amin, H. (2019). Consumer acceptance toward Takaful in Pakistan: An application of diffusion of innovation theory. International Journal of Emerging Markets, 14(4), 620–638. https://doi.org/10.1108/IJOEM-08-2017-0275
Alkhan, A. M., & Hassan, M. K. (2020). Takaful operators: analysing segregated accounts between operator/participants. Journal of Islamic Accounting and Business Research, 11(9), 1649–1664. https://doi.org/10.1108/JIABR-01-2020-0005
Alshammari, A. A., Alhabshi, S. M., & Saiti, B. (2019). The impact of oil prices and the financial market on cost efficiency in the insurance and Takaful sectors: Evidence from astochastic frontier analysis. Economic Systems, 43(3–4), 100716. https://doi.org/10.1016/j.ecosys.2019.100716
Alshammari, A. A., Syed Jaafar Alhabshi, S. M. bin, & Saiti, B. (2019). The impact of competition on cost efficiency of insurance and takaful sectors: Evidence from GCC markets based on the Stochastic Frontier Analysis. Research in International Business and Finance, 47, 410–427. https://doi.org/10.1016/j.ribaf.2018.09.003
Ansari, Z. (2022). A review of 20 years of takaful literature using a systematic method. Asian Journal of Economics and Banking, 6(1), 2–25. https://doi.org/10.1108/ajeb-08-2021- 0100
Areeba Khan, Hafiz Abdur Rashid, Rana Muhammad Shahid Yaqub, & Saba Abbas. (2020). Determinants of Customer Perception about adoption of Islamic Insurance (Takaful) in Pakistan. Journal of Business and Social Review in Emerging Economies, 6(4), 1505– 1516. https://doi.org/10.26710/jbsee.v6i4.1485
Arksey, H., & O’Malley, L. (2005). Scoping Studies: Towards A Methodological Framework. In International Journal of Social Research Methodology: Theory & Practice (Vol. 8, Issue 1). https://doi.org/10.1017/S0922156508005621
Aulia, F., Hastjarjo, T. D., Setiyawati, D., & Patria, B. (2020). Student Well-being: A Systematic Literature Review. Buletin Psikologi, 28(1), 1.https://doi.org/10.22146/buletinpsikologi.42979
Aziz, S., Md Husin, M., Hussin, N., & Afaq, Z. (2019). Factors that influence individuals’ intentions to purchase family takaful mediating role of perceived trust. Asia Pacific Journal of Marketing and Logistics, 31(1), 81–104. https://doi.org/10.1108/APJML-12- 2017-0311
Bhala, R. (2012). Overview of Islamic Finance. Handbook of Key Global Financial Markets, Institutions, and Infrastructure, 459–473. https://doi.org/10.1016/B978-0-12-397873- 8.00039-6
Bhatti, T. (2018). Antecedents and consequences of corporate reputation from a customer perspective in Takaful (Islamic insurance) industry. Corporate Ownership and Control, 15(3), 101–113. https://doi.org/10.22495/cocv15i3art9
Billah, Mohd Ma’Sum. (2019a). Accident Takaful. In Islamic Insurance Products: Exploring Takaful Principles, Instruments and Structures (pp. 97–102). Springer International Publishing. https://doi.org/10.1007/978-3-030-17681-5_6
Billah, Mohd Ma’Sum. (2019b). Islamic Insurance Products: Exloring Takaful Principles, Instrument and Structures. In Palgrave Macmillan. Springer Nature. https://doi.org/10.1007/978-3-030-17681-5
Cahyandari, R., Kalfin, R., Sukono, R., Purwani, S., Ratnasari, D., Herawati, T., & Mahdi, S. (2023). The Development of Sharia Insurance and Its Future Sustainability in Risk Management: A Systematic Literature Review. Sustainability (Switzerland), 15(10). https://doi.org/10.3390/su15108130
Dahnoun, M., & Alqudwa, B. (2018). Islamic Insurance: An Alternative to Conventional Insurance. American Journal of Humanities & Islamic Studies, 1(1), 1–7.
Djafri, F., Bin Noordin, K., & Naail Mohammed, K. (2018). The measurement model of performance determinants. International Journal of Ethics and Systems, 34(2), 166–185. https://doi.org/10.1108/ijoes-05-2017-0075
Effendi, J. (2021). Potential of Islamic Insurance Market: Islamic Banking and Sukuk Sectors Case Study in Indonesia. Global Review of Islamic Economics and Business, 9(1), 97– 107.
Gao, Shang, Fanchen Meng, Zhouyang Gu, Zhiyuan Liu, and Muhammad Farrukh. 2021. Mapping and Clustering Analysis on Environmental, Social and Governance Field a Bibliometric Analysis Using Scopus. Sustainability 13: 7304.
Haroun, A. E., & Effandi, M. (2019). Micro-Takaful as stimulus for financial inclusion : A key component towards sustainable development. Open International Journal of Informatics (OIJI), 7(2), 43–55.
Hassan, H. A., & Abbas, S. K. (2020). Factors influencing the investors’ intention to adopt Takaful (Islamic insurance) products: A survey of Pakistan. Journal of Islamic Marketing, 11(1), 1–13. https://doi.org/10.1108/JIMA-03-2018-0064
Hassan, H. A., Abbas, S. K., & Zainab, F. (2018). Anatomy of Takaful. Global Scientific Journal S, 6(3), 143–155.
Herrera-Franco, Gricelda, Néstor Montalván-Burbano, Paúl Carrión-Mero, Boris Apolo- Masache, and María Jaya-Montalvo. 2020. Research Trends in Geotourism: A Bibliometric Analysis Using the Scopus Database. Geosciences 10: 379.
Hidayah, N., Santika, D., Ummi, Z., Arifin, R., & Rifani, S. (2023). The Role of Islamic Economics in Sustainable Development Goals. Proceeding International Seminar on Islamic Studies, 4(2001), 1541–1548.
Islamic Development Bank. (2021). The Road to The SDGs: The President’s Five-Year Programme Progress and Achievement. Islamic Development Bank.
Jaffer, S., Ismail, F., Noor, J., & Unwin, L. (2010). Takaful (Islamic Insurance): Concept, Challenges, and Opportunities (Issue November).
Kamaruddin, Soemitra, A., & Nawaw, Z. (2022). Factors Affecting the Financial Performance of Islamic Insurance Companies in Indonesia Using Surplus On Contribution (SOC). E- Qien: Jurnal Ekonomi Dan Bisnis, 9(1), 157–165.
Kantakji, M. H., Abdul Hamid, B., & Alhabshi, S. O. (2020). What drives the financial performance of general takaful companies? Journal of Islamic Accounting and Business Research, 11(6), 1301–1322. https://doi.org/10.1108/JIABR-06-2018-0077
Kazaure, M. A. (2019). Extending the theory of planned behavior to explain the role of awareness in accepting Islamic health insurance (Takaful) by microenterprises in northwestern Nigeria. Journal of Islamic Accounting and Business Research, 10(4), 607– 620. https://doi.org/10.1108/JIABR-08-2017-0113
Khairi, K. F., Laili, N. H., Tran, M. D., & Associate, F. A. (2020). Proposed hybrid takaful (Islamic insurance) model for mental health illnesses among low-income earners in Malaysia. The International Journal of Business Management and Technology, 4(4), 20–27.www.theijbmt.com
Lee, H. S., Cheng, F. F., Har, W. M., Md Nassir, A., & Ab Razak, N. H. (2019). Efficiency, firm-specific and corporate governance factors of the Takaful insurance. International Journal of Islamic and Middle Eastern Finance and Management, 12(3), 368–387. https://doi.org/10.1108/IMEFM-06-2018-0187
Lin, C. H. (2018). Expanding insurance and Takaful solutions for the underserved segment. Insurance Development Department, Central Bank of Malaysia. Mac. In Insurnce Development Department (Issue March). Bank Negara Malaysia. www.bnm.gov.my
Mihardjo, L. W. W., Jermsittiparsert, K., Ahmed, U., Chankoson, T., & Iqbal Hussain, H. (2021). Impact of key HR practices (human capital, training and rewards) on service recovery performance with mediating role of employee commitment of the Takaful industry of the Southeast Asian region. Education and Training, 63(1), 1–21. https://doi.org/10.1108/ET-08-2019-0188
Mishra, Deepa, Angappa Gunasekaran, Thanos Papadopoulos, and Benjamin Hazen. 2017. Green Supply Chain Performance Measures: A Review and Bibliometric Analysis. Sustainable Production and Consumption 10: 85–99.
Mrouedh, M., & de Waal, A. (2017). Is the High Performance Organization framework applicable to Takaful insurance companies? Journal of Islamic Accounting and Business Research, 34(1), 1–5.
Muhamat, A. A., Zulkifli, A. F., Ibrahim, M. A., Sulaiman, S., Subramaniam, G., Mohamad, S., & Suzuki, Y. (2022). Realising the Corporate Social Performance (CSP) of Takaful (Islamic Insurance) Operators through Drone-Assisted Disaster Victim Identification (DVI). Sustainability (Switzerland), 14(9). https://doi.org/10.3390/su14095440
Muhammad, S. N. (2021). Micro- Takaful : An Islamic Financial Instrument for Enhancing Small Scale Enterprises in Nigeria By. Al-Hikmah Journal of Islamic Studies, 9(4), 40– 54.
Muhammedi, S., Cheumar, M., & Haji-Othman, Y. (2023). Emergency of Takaful, an Islamic Insurance Model, As an Alternative To Conventional Insurance in Uganda. International Journal of Contemporary Issues, 1(April), 2976–3851.
Nazarov, I. I., & Dhiraj, N. S. (2019). Conceptual Understanding and Significance of Takaful (Islamic Insurance): History, Concept, Models and Products. International Journal for Innovation Education and Research, 7(4), 280–298. https://doi.org/10.31686/ijier.vol7.iss4.1408
Nugraheni, P., & Muhammad, R. (2020). Innovation in the takaful industry: a strategy to expand the takaful market in Indonesia. Journal of Islamic Marketing, 11(6), 1313–1326. https://doi.org/10.1108/JIMA-08-2018-0143
Putri, A. (2023). Do Capital Structure, Retakaful, and Loss Ratio affect to Syariah Insurance Liquidity? 9(01), 116–125. http://dx.doi.org/10.29040/jiei.v9i1.7452
Rahman, N. A., Osman, Z. A., Ani, N. S., & Ahmad, Z. (2019). Religious and socioeconomic implications of Islamic insurance: A review. International Journal of Financial Research, 10(5), 313–320. https://doi.org/10.5430/ijfr.v10n5p313
Raihan Nasir, & Asmak Ab Rahman. (2022). Do tourists have better protection by taking travel takaful? A comparison in Malaysia. The Journal of Muamalat and Islamic Finance Research, 19(2), 72–87. https://doi.org/10.33102/jmifr.v19i2.462
Raza, S. A., Ahmed, R., Ali, M., & Qureshi, M. A. (2020). Influential factors of Islamic insurance adoption: an extension of theory of planned behavior. Journal of Islamic Marketing, 11(6), 1497–1515. https://doi.org/10.1108/JIMA-03-2019-0047
Rizwan, S., & Al-Malkawi, H. A. N. (2021). Development of a conceptual model to understand the purchase intentions of takaful (Islamic insurance) customers. Journal of Economic Cooperation and Development, 42(1).
Ronaldo, R., Maulini, Y., Darmansyah, D., Rahmat, A., Mirnawati, M., Ekonomi, T., Bisnis, D., & Lampung, I. (2022). Development of Risk Management to Sharia Insurance Business in Indonesian Market. Sainteknol, 20(2), 74.https://journal.unnes.ac.id/nju/index.php/sainteknol
Rubio-Misas, M. (2020). Ownership structure and financial stability: Evidence from Takaful and conventional insurance firms. Pacific Basin Finance Journal, 62(January), 101355. https://doi.org/10.1016/j.pacfin.2020.101355
Sitompul, M.; Suroso, A.I.; Sumarwan, U.; Zulbainarni, N. Revisiting the Impact of Corporate Carbon Management Strategies on Corporate Financial Performance: A Systematic Literature Review. Economies 2023, 11,171. https://doi.org/10.3390/economies11060171
Sugianto, S., Soemitra, A., Yafiz, M., Dalimunthe, A. A., & Ichsan, R. N. (2022). The implementation of waqf planning and development through Islamic financial institutions in Indonesia. JPPI (Jurnal Penelitian Pendidikan Indonesia), 8(2), 267. https://doi.org/10.29210/020221430
Suki, N. M., & Suki, N. M. (2019). Investigating the measurement of consumers' electronic word-of-mouth (E-WOM), intrinsic and extrinsic motives, and satisfaction of islamic insurance (Takaful). Jurnal Komunikasi: Malaysian Journal of Communication, 35(2), 431–447. https://doi.org/10.17576/JKMJC-2019-3502-26
Suryadi, H. (2021). Analysis Of The Factors That Influence The Growth Of Sharia Insurance Industry Assets In Indonesia (2016-2020 Period). Dinar : Jurnal Ekonomi Dan Keuangan Islam, 8(1), 1–14. https://doi.org/10.21107/dinar.v8i1.10732
Syahputra, A., & Nurtiyasari, D. (2021). Challenges and Development Strategy of Sharia Insurance in an Era of Economic Disruption. Equilibrium: Jurnal Ekonomi Syariah, 9(2), 369. https://doi.org/10.21043/equilibrium.v9i2.10670
Tahiri-Jouti, A. (2022a). Takaful Funds Meeting Cash Waqf Requirements and Sustainable Development Goals. In Financial Instruments and Cash Waqf: Bridging Islamic Finance with Sustainable Development Goals (pp. 119–132). Springer International Publishing. https://doi.org/10.1007/978-3-031-04337-6_8
Tahiri-Jouti, A. (2022b). The National Ecosystem of Cash Waqf Meeting Sustainable Development Goals. In Financial Instruments and Cash Waqf: Bridging Islamic Finance with Sustainable Development Goals (pp. 189–206). Springer International Publishing. https://doi.org/10.1007/978-3-031-04337-6_13
Taib, C. A., Ashraf, M. S., & Razimi, M. S. B. A. (2018). Productivity change in the efficiency of the insurance and takaful industry of Pakistan. Academy of Accounting and Financial Studies Journal, 22(Specialissue), 2635.
Tok, E., Yesuf, A. J., & Mohamed, A. (2022). Sustainable Development Goals and Islamic Social Finance: From Policy Divide to Policy Coherence and Convergence. Sustainability (Switzerland), 14(11). https://doi.org/10.3390/su14116875
Ullah, N., Dey, R., Shahriar, F., & Shahriar, S. (2023). A Review of Literature on Takaful and Conventional Insurance (Issue 117463). Munich Personal RePEc Archive. https://mpra.ub.uni-muenchen.de/117463/
United Nations: Department of Economic and Social Affairs. (2022). The Sustainable Development Goals Report 2022. https://unstats.un.org/sdgs/report/2022/The- Sustainable-Development-Goals-Report-2022.pdf
United Nations Development Group. (2017). Guidelines To Support Country Reporting on the Sustainable Development Goals. United Nations Development Group, 1–62. https://unsdg.un.org/sites/default/files/Guidelines-to-Support-Country-Reporting-on- SDGs-1.pdf
United Nations Development Programme. (2017). Good health and well-being: Ensure healthy lives and promote well-being for all at all ages. Atlas of Sustainable Development Goals 2017: From World Development Indicators, 14–19. ttps://doi.org/10.1596/978-1-4648- 1080-0_ch3
Wahyudi, Indra, Arif I. Suroso, Bustanul Arifin, Rizal Syarief, and Meika S. Rusli. (2021). Multidimensional Aspect of Corporate Entrepreneurship in Family Business and SMEs: A Systematic Literature Review. Economies 9: 156.
World Health Organization. (2015). 2015 from MDGs Millennium Development Goals to SDGs Sustainable Development Goals. In World Health Organization. WHO Library Cataloguing inPublication Data Health. https://doi.org/10.1007/BF01918
