Purpose

Management soundness is essential for the effectiveness of any industry, most especially in any Islamic financial sector, whereby fairness and justice are the key factors to be observed. This paper aims to examine the management soundness of the takaful industry regarding their asset quality, re-takaful and actuarial and earning and profitability.

Design/methodology/approach

This study obtained quarterly data from 2019Q1 to 2021Q4 from the Islamic Financial Services Board across Malaysia, Brunei, Saudi Arabia, Jordan and the United Arab Emirates. The panel data modelling with random-effect and fixed-effect estimators were used for the analysis.

Findings

The finding revealed a strong relationship between re-takaful and earnings with management soundness and a weak relationship between asset quality and management soundness. In addition, the result established a significant and strong association between management soundness and earnings and profitability. Therefore, re-takaful and profitability contributed more to the management soundness of the takaful industry than asset quality during the study. An increase in earnings and profitability to enable the takaful industry to pay the claims, especially in calamity, and more focus on the quality of the asset they invested in could enable the smooth running of their day-to-day business affairs.

Practical implications

More attention is required on the quality of assets in their portfolio for the sustainability of the takaful industry to fulfil their underlying objectives. Management soundness in the takaful industry should address the challenges of managerial lathery, which some studies linked with operational inefficiency because of unskilled personnel in the takaful industry. This could benefit takaful clients, irrespective of religion, to attain their associated share of benefits from the Islamic insurance industry.

Originality/value

To the best of the authors’ knowledge, this is the first empirical study that examined the effectiveness of takaful management across Malaysia, Brunei, Saudi Arabia, Jordan, and the United Arab Emirates.

中文翻译：

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对选定国家回教保险行业管理稳健性的评估

目的

管理健全对于任何行业的有效性至关重要，尤其是在任何伊斯兰金融领域，公平和正义是需要遵守的关键因素。本文旨在检验回教保险行业在资产质量、重回教保险和精算以及盈利和盈利能力方面的管理稳健性。

设计/方法论/途径

这项研究从马来西亚、文莱、沙特阿拉伯、约旦和阿拉伯联合酋长国的伊斯兰金融服务委员会获得了 2019 年第一季度至 2021 年第四季度的季度数据。使用随机效应和固定效应估计量的面板数据建模进行分析。

发现

研究结果显示，再回教保险和盈利与管理稳健性之间存在密切关系，而资产质量与管理稳健性之间的关系则较弱。此外，结果在管理稳健性与收益和盈利能力之间建立了显着且紧密的关联。因此，在研究期间，重回教保险和盈利能力对回教保险行业管理稳健性的贡献大于资产质量。收益和盈利能力的提高使回教保险行业能够支付索赔，尤其是在发生灾难时，并且更加关注他们投资的资产的质量，可以使他们的日常业务顺利进行。

实际影响

为了实现回教保险行业的可持续发展，实现其基本目标，需要更多地关注其投资组合中的资产质量。回教保险行业的管理健全性应解决管理混乱的挑战，一些研究认为，由于回教保险行业人员不熟练，管理混乱与运营效率低下有关。这可能有利于回教保险客户，无论其宗教信仰如何，都能从伊斯兰保险业中获得相关的利益份额。

原创性/价值

据作者所知，这是第一项检验马来西亚、文莱、沙特阿拉伯、约旦和阿拉伯联合酋长国回教保险管理有效性的实证研究。