Please use this identifier to cite or link to this item:
https://ptsldigital.ukm.my/jspui/handle/123456789/578150| Title: | Application of system dynamic approach for family takaful product analysis |
| Authors: | Mohamad A. I (UITM) Tumin M. H (UITM) Noor N. L. M (UITM) Saman F. M (UITM) Amin M. N. M (UITM) |
| Keywords: | Actuarial Science System Dynamic Insurance Takaful |
| Issue Date: | Jan-2018 |
| Description: | Takaful, the Islamic alternative to conventional insurance, is based on the concept of social solidarity, cooperation and mutual indemnification of losses of members. The ‘transparency’ offered in the Takaful system will eliminates the elements of gharar (uncertainty), maisir (gambling) and riba (usury). Due to the dynamicity and complexity of cash flows in the Takaful system, the application of system dynamic approach is used in order to discover any possible internal and external impacts in the assumptions used in determining contributions rate from the participants. The traditional approach, which is the deterministic approach, has limitations where changes of the actual experience may cause operators to stop issuing the contract or product. Using system dynamic, these possible effects from the actual experience can be determined in terms of the amounts transferred to shareholder’s fund and results obtained can assist the management to decide which assumptions to be used so that the operators will continue solvent and making profit at the same time. The results of System Dynamic simulation analysis in this paper represent the impacts of component changes in the Takaful model. The results can be used as decision tools for the Takaful operators to determine the best assumptions and strategies in order to maximise their profits. |
| News Source: | Pertanika Journals |
| ISSN: | 0128-7680 |
| Volume: | 26 |
| Pages: | 379-390 |
| Publisher: | Universiti Putra Malaysia Press |
| Appears in Collections: | Journal Content Pages/ Kandungan Halaman Jurnal |
Files in This Item:
| File | Description | Size | Format | |
|---|---|---|---|---|
| ukmvital_98140+Source01+Source010.PDF | 457.5 kB | Adobe PDF |  View/Open |
Items in DSpace are protected by copyright, with all rights reserved, unless otherwise indicated.