Analysis of claim ratio, risk-based capital and value-added intellectual capital: a comparison between family and general takaful operators in Malaysia / Nur Amalina Syafiqa Kamaruddin ... [et al.]

Kamaruddin, Nur Amalina Syafiqa and Ishak, Norizarina and Hamzah, Siti Raihana and Abdul Halim, Nurfadhlina and Nurullah Rasade, Ahmad Fadhly (2021) Analysis of claim ratio, risk-based capital and value-added intellectual capital: a comparison between family and general takaful operators in Malaysia / Nur Amalina Syafiqa Kamaruddin ... [et al.]. In: e-Proceedings of the 5th International Conference on Computing, Mathematics and Statistics (iCMS 2021), 4-5 August 2021.

Abstract

Insurance industry played important roles in world especially in well-developed countries. Takaful which has been getting on-going popularity in insurance sector must maintain good market growth. Thus, this study aimed to assess the financial performance of Takaful operators through Claim Ratio, Risk-Based Capital (RBC) and Intellectual Capital. The study was conducted using panel data set of 15 listed Takaful operators in Malaysia over the period 2015-2019, taken from the operators’ audited financial statements. The results were obtained by computing Claim Ratio, minimum capital level required in RBC and the Value-Added Intellectual Capital (VAIC) score. The result of Claim Ratio showed that family takaful fund has higher Claim Ratio which indicated low profit as compared to general takaful fund. The RBC result also supported that the general takaful performed better than most of family takaful by fulfilled the supervisory target capital level of 130% as required by Bank Negara Malaysia (BNM). As for VAIC score, most of the Takaful operators showed positive VAIC scores which mean they able to fully utilized company’s resources that lead to an out-standing management leader stewardship. This study further assists Takaful operators to incorporate the
Intellectual Capital method for better improvement in assessing their future performance.

Metadata

Item Type: Conference or Workshop Item (Paper)
Creators:
Creators
Email / ID Num.
Kamaruddin, Nur Amalina Syafiqa
amalsyfq@gmail.com
Ishak, Norizarina
norizarina@usim.edu.my
Hamzah, Siti Raihana
sraihana@usim.edu.my
Abdul Halim, Nurfadhlina
nurfadhlina@usim.edu.my
Nurullah Rasade, Ahmad Fadhly
fadlynurullah@usim.edu.my
Subjects: H Social Sciences > HG Finance > Insurance
H Social Sciences > HG Finance > Insurance > Health insurance
Divisions: Universiti Teknologi MARA, Kedah > Sg Petani Campus
Journal or Publication Title: International Conference on Computing, Mathematics and Statistics (iCMS 2021)
Event Title: e-Proceedings of the 5th International Conference on Computing, Mathematics and Statistics (iCMS 2021)
Event Dates: 4-5 August 2021
Page Range: pp. 387-395
Keywords: Takaful, claim ratio, risk-based capital, intellectual capital
Date: 2021
URI: https://ir.uitm.edu.my/id/eprint/56234
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