The Resilience of Sharia Insurance in MENA During the COVID-19 Pandemic: An Analysis of Financial Performance
DOI:
https://doi.org/10.21580/economica.2022.13.1.12617Keywords:
Sharia Insurance, Takaful, COVID-19 Pandemic, MENAAbstract
The COVID-19 pandemic affects financial institutions worldwide, including Islamic financial institutions such as sharia insurance. This research focuses on sharia insurance in the Middle East and North Africa (MENA) that provide governance mechanisms and audit quality. The value of sharia insurance income in the MENA did not show a certain trend during the study period, although there were some extreme values during this COVID-19 pandemic. This study aims to examine the effect of the COVID-19 pandemic on sharia insurance earned in MENA. The quarterly data from 2010 to 2020 is used with panel regression as an analytical tool. As a result, the COVID-19 pandemic had no significant effect on sharia insurance earned in MENA. On the other hand, net income, long-term investment, assets have a significant effect. It shows that most sharia insurance in the MENA can survive during the COVID-19 pandemic. This study also confirms that Islamic financial institutions are still the best in their ability to stay during the COVID-19 pandemic. Moreover, sharia insurance is an alternative for welfare protection for residents in the MENA.Downloads
References
Afifah, M. D., & Hasymi, M. (2020). Pengaruh Profitabilitas, Leverage, Ukuran Perusahaan, Intensitas Aset Tetap dan Fasilitas Terhadap Manajemen Pajak dengan Indikator Tarif Pajak Efektif. Journal of Accounting Science, 4(1), 29–42. https://doi.org/10.21070/jas.v4i1.398
Akhter, W., & Hussain, T. (2012). Takāful standards and customer perceptions affecting takāful practices in Pakistan: a survey. International Journal of Islamic and Middle Eastern Finance and Management, 5(3), 229–240. https://doi.org/10.1108/17538391211255214
Albarrak, M. S., & Alokley, S. A. (2021). FinTech: Ecosystem, Opportunities and Challenges in Saudi Arabia. Journal of Risk and Financial Management, 14(10), 460. https://doi.org/10.3390/jrfm14100460
Ali, M. M. (2020). COVID-19: Reshaping the Future Direction of Islamic Finance. ICR Journal, 11(2), 341–344. https://doi.org/10.52282/icr.v11i2.788
Apriada, K., & Suardika, Ma. S. (2016). Pengaruh Struktur Kepemilikan Saham, Struktur Modal Dan Profitabilitas Pada Nilai Perusahaan. E-Jurnal Ekonomi Dan Bisnis Universitas Udayana, 20(3), 201–218. https://doi.org/10.35808/ersj/699
Ben Dhiab, L. (2021). Determinants of Insurance Firms’ Profitability: An Empirical Study of Saudi Insurance Market. The Journal of Asian Finance, Economics and Business, 8(6), 235–243. https://doi.org/10.13106/jafeb.2021.vol8.no6.0235
Biener, C., Eling, M., & Wirfs, J. H. (2016). The determinants of efficiency and productivity in the Swiss insurance industry. European Journal of Operational Research, 248(2), 703–714. https://doi.org/10.1016/j.ejor.2015.07.055
Cheng, J., & Ai, M. (2020). Optimal designs for panel data linear regressions. Statistics and Probability Letters, 163, 108769. https://doi.org/10.1016/j.spl.2020.108769
Chowdhury, P., & Shumon, R. (2020). Minimizing the gap between expectation and ability: Strategies for smes to implement social sustainability practices. Sustainability (Switzerland), 12(16). https://doi.org/10.3390/SU12166408
Dyllick, T., & Muff, K. (2016). Clarifying the Meaning of Sustainable Business: Introducing a Typology From Business-as-Usual to True Business Sustainability. Organization and Environment, 29(2), 156–174. https://doi.org/10.1177/1086026615575176
Echchabi, A., Ayinde Olorogun, L., & Azouzi, D. (2014). Islamic insurance prospects in Tunisia in the wake of the Jasmine revolution: A survey from customers’ perspective. Journal of Islamic Accounting and Business Research, 5(1), 15–28. https://doi.org/10.1108/JIABR-06-2012-0032
Eldaia, M., Hanefah, M. M., Marzuki, A. B., & Shatnawi, S. A. (2021). Islam Elgedawy Editors The Importance of New Technologies and Entrepreneurship in Business Development : In The Context of Economic Diversity in Developing Countries The Impact of New Technologies Development. March. https://doi.org/10.1007/978-3-030-69221-6
Faoziyyah, A. A., & Laila, N. (2020). Faktor Internal Dan Faktor Makroekonomi Yang Mempengaruhi Profitabilitas Asuransi Syariah Di Indonesia Periode 2016-2018. Jurnal Ekonomi Syariah Teori Dan Terapan, 7(6), 1146. https://doi.org/10.20473/vol7iss20206pp1146-1163
Ferson, W., & Wang, J. L. (2021). A Panel Regression Approach to Holdings-Based Fund Performance Measures. SSRN Electronic Journal, 0(March), 1–40. https://doi.org/10.2139/ssrn.3753148
Haque, F., & Brown, K. (2017). Bank ownership, regulation and efficiency: Perspectives from the Middle East and North Africa (MENA) Region. International Review of Economics and Finance, 47(September 2017), 273–293. https://doi.org/10.1016/j.iref.2016.10.015
Hassan, M. K., Rabbani, M. R., & Abdulla, Y. (2021). Socioeconomic Impact of COVID-19 in MENA region and the Role of Islamic Finance. International Journal of Islamic Economics and Finance (IJIEF), 4(1), 51–78. https://doi.org/10.18196/ijief.v4i1.10466
Hassan, M. K., Rabbani, M. R., & Mahmood, M. A. (2020). Challenges for the islamic finance and banking in post COVID era and the role of Fintech. Journal of Economic Cooperation and Development, 41(3), 93–116.
Hayati, M. (2016). Investasi Menurut Perspektif Ekonomi Islam. Journal of Islamic Economics and Business), 1(1), 66–78.
Hidayat, N. I. A., Susanti, S., & Zulaihati, S. (2021). Pengaruh Premi, Hasil Investasi dan Risk Based Capital terhadap Laba Perusahaan Asuransi Syariah Indonesia 2019. Jurnal Akuntansi, Keuangan, Dan Manajemen, 2(4), 327–344. https://doi.org/10.35912/jakman.v2i4.552
Jannah, D. M., & Nugroho, L. (2019). Strategi Meningkatkan Eksistensi Asuransi Syariah di Indonesia. Jurnal Maneksi, 8(1), 169–176.
Kabir Hassan, M., & Soumaré, I. (2015). Guarantees and Profit-Sharing Contracts in Project Financing. Journal of Business Ethics, 130(1), 231–249. https://doi.org/10.1007/s10551-014-2201-0
Khairi, K. F., Laili, N. H., & Kamarubahrin, A. F. (2020). Market Thoughts: Potential Implications of COVID-19 on Takaful Scheme for Mental Health Disorders. The Journal of Muamalat and Islamic Finance Research, 17, 49–58. https://doi.org/10.33102/jmifr.v17i3.283
Kim, D. W., Yu, J. S., & Hassan, M. K. (2018). Financial inclusion and economic growth in OIC countries. Research in International Business and Finance, 43(October 2016), 1–14. https://doi.org/10.1016/j.ribaf.2017.07.178
Lestari, I. I., & Mukhibad, H. (2020). Determinan Solvabilitas Dana Tabarru’ Pada Perusahaan Asuransi Syariah Di Indonesia. El Dinar, 8(1), 52. https://doi.org/10.18860/ed.v8i1.8033
Lilavira, A., & Zulaikha, S. (2020). Analisis Faktor-Faktor Yang Mempengaruhi Pertumbuhan Aset Pada Perusahaan Asuransi Syariah Periode 2013 – 2017. Jurnal Ekonomi Syariah Teori Dan Terapan, 7(2), 305. https://doi.org/10.20473/vol7iss20202pp305-318
Lutfullaevich, M. T. (2022). World Insurance Market: Current Opportunities Of The West And Muslim Countries. Modern Journal of Social Sciences and Humanities, 4, 473–476.
Meilinda, D., & Mahmud, A. (2020). Pengaruh Kredit Usaha Rakyat (KUR), Total Aset, Jumlah Tenaga Kerja, Biaya Pemasaran Dan Lokasi Usaha Terhadap Pendapatan Usaha Mikro Kecil dan Menengah (UMKM) Berbasis Ekonomi Kreatif di Kota Semarang. Business and Accounting Education Journal, 1(3), 247–257. https://doi.org/10.15294/baej.v1i3.45659
Meyer, R. D., Ratitch, B., Wolbers, M., Marchenko, O., Quan, H., Li, D., Fletcher, C., Li, X., Wright, D., Shentu, Y., Englert, S., Shen, W., Dey, J., Liu, T., Zhou, M., Bohidar, N., Zhao, P. L., & Hale, M. (2020). Statistical Issues and Recommendations for Clinical Trials Conducted During the COVID-19 Pandemic. Statistics in Biopharmaceutical Research, 12(4), 399–411. https://doi.org/10.1080/19466315.2020.1779122
Midesia, S. (2022). The Effect Of The Amount Of Labor And Total Assets On The Income Of Micro , Small And Medium Enterprises In Langsa Kota Subdistrict. J-ISCAN: Journal of Islamic Accounting Research, 4(1), 65–74. https://doi.org/https://doi.org/10.52490/jiscan.v4i1.419
Mukaka, M. M. (2012). Statistics corner: A guide to appropriate use of correlation coefficient in medical research. Malawi Medical Journal, 24(3), 69–71.
Nainggolan, L. M., & Soemitra, A. (2020). the Contribution Income, Investment Results, and Claim Expenses on Sharia Life Insurance Income. Jurnal Ekonomi Dan Bisnis Islam (Journal of Islamic Economics and Business), 6(2), 201. https://doi.org/10.20473/jebis.v6i2.21734
Nor, N. B. M., & Kamil, N. M. (2014). Factors Influencing the Choice of Takaful over Conventional Insurance : The Case of Malaysia. Journal of Islamic Finance, 3(2), 1–14. https://doi.org/10.12816/0025101
Nuhanović, A. (2020). Identification of the Strengths and Weaknesses of the Conventional and Islamic Financial System during the COVID-19 Pandemic. Asian Journal of Business and Management, 8(5).
Oaxaca, R. L., & Dickinson, D. L. (2016). Symmetric experimental designs: conditions for equivalence of panel data estimators. Journal of the Economic Science Association, 2(1), 85–95. https://doi.org/10.1007/s40881-016-0022-x
Pakekong, M. I., Murni, S., & Rate, P. V. (2019). the Effect of Ownership Structure, Dividend Policy and Debt Policy on Firm Value in Incurance Companies Listed on Idx in the Period of 2012-2016. Jurnal EMBA, 7(1), 611–620.
Puspit, L. A., Mehari, D., & Aemiro, T. (2013). Firm Specific Factors That Determine Insurance Companies’ Performance in Ethiopia. European Scientific Journal, 9(10), 1857–7881.
Puspitasari, N. (2016). Determinan Proporsi Dana Tabarru’ Pada Lembaga Keuangan Asuransi Umum Syariah. Jurnal Akuntansi Dan Keuangan Indonesia, 13(2), 160–173. https://doi.org/10.21002/jaki.2016.09
Rizki, M. K., Agriyanto, R., & Farida, D. N. (2019). The Effect of Sustainability Report and Profitability on Company Value: Evidence from Indonesian Sharia Shares. Economica: Jurnal Ekonomi Islam, 10(1), 117–140. https://doi.org/10.21580/economica.2019.10.1.3747
Rusdiyanto, R., & Narsa, I. M. (2019). the Effects of Earnigs Volatility, Net Income and Comprehensive Income on Stock Prices on Banking Companies on the Indonesia Stock Exchange. International Review of Management and Marketing, 9(6), 18–24. https://doi.org/10.32479/irmm.8640
Salman, S. A., Hassan, R., & Tahniyath, M. (2019). Takaful an Innovation to Contemporary Insurance. Journal Homepage: International Journal of Research in Social Sciences International Journal of Research in Social Sciences, 9(8), 2249–2496.
Schoenmaker, D. (2018). A Framework for Sustainable Finance. SSRN Electronic Journal, January. https://doi.org/10.2139/ssrn.3125351
Shaddady, A. (2021). Business environment, political risk, governance, Shariah compliance and efficiency in insurance companies in the MENA region. In Geneva Papers on Risk and Insurance: Issues and Practice (Issue 0123456789). Palgrave Macmillan UK. https://doi.org/10.1057/s41288-021-00232-8
Sherif, M., & Azlina Shaairi, N. (2013). Determinants of demand on family Takaful in Malaysia. Journal of Islamic Accounting and Business Research, 4(1), 26–50. https://doi.org/10.1108/17590811311314276
Sherif, M., & Hussnain, S. (2017). Family Takaful in developing countries: the case of Middle East and North Africa (MENA). International Journal of Islamic and Middle Eastern Finance and Management, 10(3), 371–399. https://doi.org/10.1108/IMEFM-01-2016-0016
Sri, A., Dewi, M., & Wirajaya, A. (2013). Pengaruh Struktur Modal, Profitabilitas Dan Ukuran Perusahaan Pada Nilai Perusahaan. E-Jurnal Akuntansi, 4(2), 358–372.
Susanto, H., Prasetyo, I., Indrawati, T., Aliyyah, N., Rusdiyanto, Tjaraka, H., Kalbuana, N., Syafi’ur Rochman, A., Gazali, & Zainurrafiqi. (2021). The impacts of earnings volatility, net income and comprehensive income on share price: evidence from Indonesia stock exchange. Accounting, 7(5), 1009–1016. https://doi.org/10.5267/j.ac.2021.3.008
SW, S., & Susanti, R. (2017). Pengaruh Modal Kerja, Aset, Dan Omzet Penjualan Terhadap Laba Ukm Catering Di Wilayah Surakarta. EKSPLORASI, 29(2).
Syarofi, M. (2022). Implementasi Manajemen Risiko Pada Lembaga Keuangan Non-Bank Syariah (Studi Analisis Unit Simpan Pinjam Pola Syariah Ausath Banyuwangi). Ribhuna, 1, 1–13.
Tagliapietra, S. (2019). The impact of the global energy transition on MENA oil and gas producers. Energy Strategy Reviews, 26(February), 100397. https://doi.org/10.1016/j.esr.2019.100397
Triana, N. K. R., & Dewi, G. A. K. R. S. (2020). Pengaruh Pendapatan Premi, Hasil Investasi, Pertumbuhan Modal dan Hasil Underwriting terhadap Pertumbuhan Aset Perusahaan Asuransi. Jurnal Ilmiah Akuntansi Dan Humanika, 1(2), 1–11.
Veličković, V. (2015). What Everyone Should Know about Statistical Correlation. A common analytical error hinders biomedical research and misleads the public. American Scientist, 103(1), 26–30.
World Health Organization. (2022). No Title.
Yudhira, A. (2021). Analisis Perkembangan Financial Technology (Fintech) Syariah Pada Masa Pandemi Covid-19 Di Indonesia. Value, 2(1), 13–28. https://doi.org/10.36490/value.v2i1.118
Zhang, H., Hong, H., Guo, Y., & Yang, C. (2022). Information spillover effects from media coverage to the crude oil, gold, and Bitcoin markets during the COVID-19 pandemic: Evidence from the time and frequency domains. International Review of Economics and Finance, 78(December 2021), 267–285. https://doi.org/10.1016/j.iref.2021.12.005
Published
Issue
Section
License
Authors who publish with this journal agree to the following terms:
Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this journal.
Authors can enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), acknowledging its initial publication in this journal.
Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) before and during the submission process, as it can lead to productive exchanges and earlier and greater citation of published work (See The Effect of Open Access).
