THE 10
thISLAMIC BANKING, ACCOUNTING, AND FINANCE INTERNATIONAL CONFERENCE 2022
(iBAF 2022)
Research Trend in Takaful: A Meta Analysis Ainulashikin Marzuki
Faculty of Economics and Muamalat, Universiti Sains Islam Malaysia (USIM), Bandar Baru Nilai, 71800 Nilai, Negeri Sembilan Malaysia
Tel: +606 798 6438 E-mail: [email protected]
Wan Amalina Wan Abdullah
Faculty of Economics and Management Sciences, Universiti Sultan Zainal Abidin (UnisZA), Gong Badak Campus, 21300 Kuala Nerus, Terengganu Malaysia
Tel: +609 6688 272 E-mail: [email protected]
Nurul Nazlia Jamil
Faculty of Economics and Muamalat, Universiti Sains Islam Malaysia (USIM), Bandar Baru Nilai, 71800 Nilai, Negeri Sembilan Malaysia
Tel: +606 797 8679 E-mail: [email protected]
Liyana Hazwani Johari
Faculty of Economics and Muamalat, Universiti Sains Islam Malaysia (USIM), Bandar Baru Nilai, 71800 Nilai, Negeri Sembilan Malaysia
Tel: +6013 950 4520 E-mail: [email protected]
Abstract
Research in Takaful has seen a significant increase in current years. Since Takaful is an important component of Islamic financial system, yet the research in the area is still scarce. This study aims to present past and current research on Takaful to direct future publication. This study employs meta-analysis; a combination of bibliometric analysis and content analysis. This bibliometric analysis examines 398 research publications from 1989 to 2022 while the content analysis has been performed on recent Takaful literature published over the period of 2021 to 2022 as to highlight recent research contribution. In this paper, bibliometric information was analyzed using Microsoft Excel to extract the raw data and perform frequency analysis, VOSviewer for data mapping, and Harzing’s Publish and Perish for citation analysis. Harzing’s Publish and Perish has been selected as it facilitates the search on literature with high impact and performance in terms number of citations per author and the publications’ performance through h-index and g-index. The number of research publications have grown significantly especially starting from 2012. Most articles were published in English, mainly in journals. The highest research contributions and the most co-authors come from Malaysia. Takaful studies have been conducted widely across the globe and the publication numbers are increasing over the years. To the best of our knowledge, there is limited article discussing bibliographic information on Takaful publications by employing both Harzing’s Publish and Perish and VOSviewer software to extract data from the Scopus database. This study reveals the widely used themes and future themes. It is highly recommended to employ other academic databases and to use other software to perform the extended analysis.
Keywords: Takaful; Islamic insurance; Islamic mutual insurance; Islamic cooperative insurance
1. Introduction
Takaful is an important component of Islamic financial Institutions given its current growth in total assets.
Although Takaful is regarded as the smallest Islamic financial sector by assets, its significant growth during the outbreak of COVID-19 in 2020 has seen a 16% increase in the global Takaful sector. The pools of Takaful assets are concentrated in the GCC, MENA counties and Southeast Asia, mainly in Saudi Arabia, Iran, and Malaysia respectively. It is projected that global Takaful asset will experience a significant growth of 46% in 2025 within a five-year period from 2020 which amounted to $91 billion. (ICD-REFINITIV, 2020).
Malaysia, as one of the International Islamic finance hubs has taken a proactive approach in developing policy and guidelines for Takaful Operators (TOs) operating in the country through the function of the Bank Negara
Malaysia (BNM). Thus, an analysis of the past Takaful literature is needed to see its publication trends and other important information on the most influential authors and citation analysis around the world.
We adopt a bibliometric analysis, with data visualization techniques through VOSviewer and citation metrics analysis by employing Harzing’s Publish and Perish (Fauzan, and Jahja, A. S., 2021 and Fauzan, Ibrahim, M., and Jahja, A. S. , 2021). At the moment, there are only three publications on Bibliometric analysis related to Takaful literature performed by Kusmayadi, D. et. al (2021) Hassan, M.K. et. al (2020) Nasir, A. et. al (2020). As represented by the year, it shows that study on Takaful metadata is still scarce and at the beginning phase. To the best of our knowledge, only Nasir, A. et. al (2020) employed Scopus database and the sample selection was limited to publication between 2000 to 2019 only and none of the study analyzed data through both Harzing’s Publish or Perish and VOSviewer simultaneously. Harzing’s Publish or Perish software could facilitate in examining the publication impact and performance through number of citations, g-index, and h-index. This study analyzed the first Takaful publication in 1989 until recent publication in 2022 and it provides a thorough analysis of keywords development coupled with content analysis on recent publications.
Further, we also found that only Hassan, M.K. et. al (2020) conducted content analysis on Takaful research published between 2019 and 2020 in the meta-analysis study and the sample selection was limited to 20 publications only. This study also performed content analysis on a larger scale of Takaful publications. We conducted a traditional literature review on 54 recent Takaful research published between 2021 to 2022. Thus, we would not undermine recent publication to gauge for future research.
Researchers can examine publication trends and to study the impact and performance of Takaful publications through keyword analysis, authors analysis, and citation analysis. Four main research questions posed in this study:
First, how the publication trend in Takaful research has developed and been distributed? Second, who are the most actively contributed authors in terms of publication? Third, what is the current citation performance of the publications? Fourth, what are the possible direction of future research.
This study examines the results in various ways in response to the research questions. The raw data has been exported to Microsoft Excel and analyzed directly such as number of publications based on authors and the publication trend. Scopus.csv file has been exported and analyzed through VOSviewer software to generate data visualization on research collaborations. The findings on citation analysis have been gathered through scopus,ris file by employing Harzing’s Publish and Perish software. It is hoped that this study could provide a meaningful insight for researchers around the world to explore future potential areas in Takaful research.
2. Methodology, Data, and Analysis
Scopus has been employed as the leading database to extract the data for the purpose of the study. Given its reputation as one of the largest academic databases, Scopus also provides searchable citation, single abstract, and has the function to search literature through abstract sources. Bibliometric analysis has been applied as it assists in providing bibliographic indicators of the literature. Takaful literature is regarded as limited in number. Given its significant contribution to the growth of Islamic finance, bibliometric research may provide meaningful insights for researcher to analyze substantial data on Takaful publications in terms of prominent works and their relationships.
We further analyzed the content of selected literature for recent publication. The combination of quantitative analysis (bibliometric) and qualitative analysis (content) is common in social science literature but still at infancy stage in finance study (Zamore, S. et. al, 2018). Thus, we conduct further content analysis on literature from our sample selection published in 2021 until 2022 to highlight recent publications in which subsequently could gauge to the direction for future research. Publications without author keywords are not included in the content analysis.
Bibliometric and citation analyses have been recently adopted by prior studies (e.g., Hassan, M.K. et. al 2020 and Gu. 2004). For instance, Hassan, M.K., et. al (2020) conducted bibliometric meta-analysis, with data visualization methods and supported with content analysis. Particularly in knowledge management (KM) stream, Gu (2004) conducted a general bibliometric analysis on 1407 global KM publications published during 1975–2004 and it assisted with exploratory investigation on major players and disciplines in KM publications.
The bibliometric analysis provides the avenue for the researchers to perform from the very basic analysis through Microsoft Excel to the extent of complex analysis by employing VOSviewer and Harzing’s Publish and Perish (PoP).
Moed, H.F. et.al (2002) stated that a bibliometric analysis may reveal authors publication performance and how they collaborated between them. They added that Bibliometric study could provide quantitative outcomes. Bibliometric analysis on Takaful is very limited but recently has grown quickly (Hassan, M.K., 2020).
Further, we couple the bibliometric analysis and content analysis following a more traditional approach of literature review by adapted the study on meta-analysis performed by Hassan, M.K. et. al (2020). The sample selection for our content analysis is based on the literature derived for bibliometric analysis. We performed the content analysis on recent papers published within the year 2021 and 2022 as to avoid bias. (Hassan, M.K. et. al, 2020).
3. Source and Data Collection
Basically, we focused on all documents related to Takaful from the very beginning of its publication. The scanty numbers of research in Takaful require us to extend the timeframe of Takaful publications to the period of four decades. Hence, the duration of the sample selected is from the year 1989 to the year 2022.
Based on Figure 1, the related keywords have been used to extract files from the database which are (Title:
({"Takaful" OR "Islamic insurance" OR "Islamic mutual insurance" OR "Islamic cooperative insurance"}). For the purpose of this study, we analysed documents extracted on June 21, 2022, at 1.08 p.m. The search query produced 435 documents. All the documents extracted have been indexed and 37 documents have been removed after the data cleaning process. No duplication of documents during the search process, therefore, 398 documents will be utilised for further analysis.
Figure 1. Flow Diagram of The Search Strategy
4. Results and Discussion
This study analysed three aspects of the literature namely the evolution and distribution of Takaful research, key areas of Takaful research, and lastly major players in Takaful publications. As such, this study examined the number of published studies per year, source types, language of document, subject area, most active source titles, distribution of publication across by country, most active institutions, authorship, frequency of keywords, and citation analysis.
The findings mainly presented in terms of frequency and percentage. The number of documents depicting the frequencies of the data appeared after the data extraction. Further, for growth trajectory, the data is presented as total documents retrieved per year including the percentage and cumulative percentage. We present the citation analysis as a citation metric and report the 10 most cited articles on Takaful.
4.1 Source Type
Table 1 summarizes the spread of the Takaful publications in five different source types. Most of the publications were published in Journal.
Topic Takaful
Scope & Coverage Database: Scopus
Search Field: Article Title, Keyword, and Abstract Language: All
Source Type: All
Keywords & Search String TITLE + ABS + KEY: (“Takaful” OR “Islamic insurance” OR “Islamic mutual insurance” OR
“Islamic cooperative insurance”
Data Extracted
22nd June 2022
Record Included for Bibliometric Analysis
Identification of studies via Scopus database
Topic, Scope, and Eligibility ScreeningIncluded
Record Identified & Screened
Record Removed
n = 435
n = 37
n = 398
Table 1. Source Type
Source Type Number of
Document Percentage (%)
Journal 320 80.40%
Book 47 11.81%
Conference Proceeding 22 5.53%
Book Series 8 2.01%
Trade Journal 1 0.25%
TOTAL 398 100.00%
4.2 Publication Year - Evolution of Published Studies
Data on publication year analyze the evolution of research publication. It reports the research productivity based on total documents published every year. Further, it helps researchers to study the focus of research area over time.
Figure 2 summarizes the publication trends.
Figure 2. Total Publications and Citations by Year 4.3 Languages of Documents
Scopus sets an English written abstract and title as one of the minimum criteria for a journal to be indexed in its database. Bibliometric study concerns with the bibliometric information as the dataset such as language is vital to the research area. It does not analyzed the content of the documents.
As presented in Table 2, English is the main language in Takaful publication. It comprises 97.74% from the total 398 documents. Researchers also used Malay, Arabic, Russian, Ukrainian, and Urdu in their studies.
As one single document probably belongs to two or more subject areas, this answers the question why the total number of documents for language are higher than the original documents of 398. Further explanation is included in the discussion on the subject area.
Table 2. Languages of Documents
Language Number of Document Percentage (%)
English 389 97.74%
Malay 4 1.01%
Arabic 3 0.75%
Russian 2 0.50%
Ukrainian 1 0.25%
Urdu 1 0.25%
TOTAL 400 100.00%
4.4 Subject Area
This research also examined the publications based on the subject areas as summarized in Table 5. Study in Takaful was extensively published in the area of Business, Management, and Accounting with 187 documents (46.98%). This data is vital for researchers in Takaful to analyze the common subject areas of the published literature.
However, there are also other subject areas not related to Takaful specifically Social Sciences namely Engineering, Computer Sciences, Biochemistry, Genetics and Molecular Biology, Environmental Science, Agricultural and Biological Sciences, Energy, Chemical Engineering, Pharmacology, Toxicology and Pharmaceutics, Medicine, Earth and Planetary Sciences, and Materials Science which comprised less than 10% respectively from the total number of subject areas.
-50500 100150 200 250
1989 1994 1998 1999 2000 2004 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Total Publications/ Citations
Year Publication Trend
Total Publications Total Citations Linear (Total Publications)
As explained above that one single document probably belongs to two or more subject areas, Table 3 answers why total documents for the subject area exceed the 398 documents extracted directly from the Scopus database.
Table 3. Subject Area
Subject Area Number of Document Percentage (%)
Business, Management and Accounting 187 46.98%
Economics, Econometrics and Finance 178 44.72%
Social Sciences 103 25.88%
Arts and Humanities 41 10.30%
Computer Science 36 9.05%
Engineering 29 7.29%
Multidisciplinary 17 4.27%
Mathematics 16 4.02%
Decision Sciences 11 2.76%
Environmental Science 10 2.51%
Biochemistry, Genetics and Molecular Biology 7 1.76%
Physics and Astronomy 7 1.76%
Energy 6 1.51%
Medicine 6 1.51%
Chemical Engineering 5 1.26%
Agricultural and Biological Sciences 4 1.01%
Pharmacology, Toxicology and Pharmaceutics 4 1.01%
Psychology 3 0.75%
Earth and Planetary Sciences 2 0.50%
Materials Science 2 0.50%
TOTAL 674 169.35%
4.5 The Most Active Source Title
Basically, there are five types of sources in Scopus namely Journal, Conference Proceedings, Book, Book Series, and Trade Journals (Aidi Ahmi, 2021). As such, the classifications of publication are assigned to related source titles.
This study also presents the most active source titles with four or more research publications on Takaful. Table 4 summarizes the information on the publishers. Journal of Islamic Accounting and Business Research produced the highest Takaful publications with 29 documents (7.29%).
Table 4. Top 20 Source Title
Source Title Number of Document Percentage (%)
Journal Of Islamic Accounting And Business Research 29 7.29%
Journal Of Islamic Marketing 20 5.03%
Takaful Islamic Insurance Concepts And Regulatory Issues 13 3.27%
Jurnal Pengurusan 11 2.76%
International Journal Of Islamic And Middle Eastern Finance And Management 10 2.51%
Isra International Journal Of Islamic Finance 10 2.51%
Journal Of King Abdulaziz University Islamic Economics 9 2.26%
Arab Law Quarterly 8 2.01%
Academy Of Accounting And Financial Studies Journal 7 1.76%
Al Shajarah 7 1.76%
Asian Social Science 7 1.76%
Aip Conference Proceedings 5 1.26%
Far East Journal Of Mathematical Sciences 5 1.26%
Lecture Notes In Networks And Systems 5 1.26%
Advanced Science Letters 4 1.01%
Australian Journal Of Basic And Applied Sciences 4 1.01%
Geneva Papers On Risk And Insurance Issues And Practice 4 1.01%
Humanomics 4 1.01%
Intellectual Discourse 4 1.01%
New Developments In Islamic Economics Examples From Southeast Asia 4 1.01%
TOTAL 17 42.71%
4.6 Keyword Analysis
This section examines the author keyword only. For the purpose of this analysis, minimum occurrence of keywords has been set to six keywords as to optimize the number of findings. Different setting for number of occurrences may produce different result. Therefore, we limit out findings to less than 30 keywords. Hence, 24 keywords from the total 1015 keywords have been extracted from the VOSviewer software.
Based on Figure 3, there are four clusters represented by colors. Clusters in red color mostly relates to “Takaful”
and “Insurance” while the remaining clusters are colored in yellow, green, and blue Figure 3.
Figure 4 has been generated from VOSviewer software using the overlay visualization mapping type. It maps the most recent and older keywords being used in the Takaful area. Further, it represents the evolution of the term as compared to other visualization types. The most recent keywords are colored in yellow while the older terms are colored in purple. The frequent recent keywords being used are Saudi Arabia and Religiosity.
Figure 3. Network Visualization Map of the Author Keywords Source: VOSviewer
Figure 4. Overlay Visualization Map of the Author Keywords Source: VOSviewer
Table 5 represents the frequency of keywords based on the four clusters discussed on Figure 3. The selection of cluster categories is based on the frequencies of keywords in each document. Further examination on the document titles and abstracts are needed to ensure the accuracy of the keywords’ grouping.
In summary, research on Takaful mainly focus on red clusters and very few in blue-cluster category. It reveals that Takaful research concentrated in the discussion of input-output analysis in comparison to insurance on the aspect of efficiency while less publications related to consumers’ behavioural aspect.
Table 5: Articles with Their Most Frequently Occurring Keywords
Cluster Most Frequent Keywords
Cluster one – Red “Takaful” (142 occurrences); “Insurance” (43 occurrences); “Efficiency” (17 occurrences); “Saudi Arabia” (12 occurrences); “Risk Management” (8 occurrences); “Data Envelopment Analysis” (10 occurrences); “Cost Efficiency” (6 occurrences); and “Corporate Governance” (8 occurrences).
Cluster two – Yellow “Islamic Insurance” (54 occurrences); “Islamic Finance” (24 occurrences); “Takaful” (13 occurrences); “Islamic Banking” (10 occurrences); and “Waqf” (6 occurrences).
Cluster three – Green “Malaysia” (34 occurrences); “Family Takaful” (11 occurrences); “Takaful Industry” (13 occurrences); “Shariah” (8 occurrences); “Islam” (6 occurrences); and “Pakistan” (8 occurrences).
Cluster four – Blue “Attitude” (7 occurrences); “Awareness” (7 occurrences); “Subjective Norms” (7 occurrences); “Intention” (6 occurrences); and “Religiosity” (6 occurrences).
4.7 Geographical Distribution of Publications
Table 6 summarizes the top 20 countries with the most contributions in conducting research on Takaful.
Researchers from Malaysia produced the highest publications with 247 number of documents which accumulated 62.06% from the total documents followed by Pakistan with 35 documents (8.79%) and Saudi Arabia with 28 documents (7.04%).
Table 6. Top 20 Countries Contributing to the Publications
Country Total Publication % (N=497)
Malaysia 247 62.06%
Pakistan 35 8.79%
Saudi Arabia 28 7.04%
United Kingdom 26 6.53%
Indonesia 22 5.53%
United States 15 3.77%
United Arab Emirates 13 3.27%
Australia 11 2.76%
Turkey 11 2.76%
Nigeria 7 1.76%
Bahrain 6 1.51%
Russian Federation 6 1.51%
Morocco 5 1.26%
Qatar 4 1.01%
Spain 4 1.01%
Finland 3 0.75%
Iran 3 0.75%
Oman 3 0.75%
Tunisia 3 0.75%
Algeria 2 0.50%
4.8 Authors Analysis
This section focuses on authorship analysis. We analyzed the collaboration between authors in Takaful into different contexts, namely by authors and countries. Researchers could gain benefits through collaborations in their research. They could discover new things, lessen the problem-solving process, save time in the decision-making process, and spare the remaining time in more productive research activities.
The first part of our discussion focuses on the total publications based on the number of contributing authors. Table 7 shows 24.87% publications were single authored with 99 publications. The remainders of the publication were multiple authored. There were two publications produced by eight authors and 12 authors respectively.
Table 7. Number of Author(s) per Document
Author Count Total Publications % (N=398)
Malaysia 247 62.06%
Pakistan 35 8.79%
Saudi Arabia 28 7.04%
United Kingdom 26 6.53%
Indonesia 22 5.53%
United States 15 3.77%
United Arab Emirates 13 3.27%
Australia 11 2.76%
Turkey 11 2.76%
Nigeria 7 1.76%
TOTAL 398 100.00%
Data for Figure 5 has been generated through VOSviewer software. Authors with publications of less than five articles have been excluded. From the total number of 398 authors, only 13 authors met the threshold. The highest number of collaborations among authors came from Ghazali P.L. followed by Mamat M. There are three clusters of research collaboration present in red, blue, and green clusters. Clusters which are not connected to each other resemble authors with no research collaboration. Most researchers resorted to work in silos.
Figure 5. VOSviewer Visualization of a Term Co-authorship Network Based on the Author Source: VOSviewer
Figure 6 presents authors’ collaboration in terms of their affiliations based on countries. During the analysis, the minimum number of documents have been set to one while the minimum number of citations have been set to three.
From the total number of 48 countries, only 33 countries met the threshold. We can see clearly that the central node of research collaborations comes from Malaysia. All clusters are connected to different clusters. There are active research collaborations between Asian countries. A few authors from Western countries also collaborated in their research.
Figure 6. VOSviewer Visualization of a Co-authorship Network Based on the Country Source: VOSviewer
4.9 Most Influential Institutions
This section focuses on analyzing main institutions that produced more than five publications.
We can see the dispersion of contributed researchers around the world by presenting the institution with the country it originated.
As shown in Table 8. there were 160 institutions have contributed in Takaful research. Majority
of the institutions that produced more than two publications originated from Malaysia. The
International Islamic University Malaysia (IIUM) produced the highest number of publications
with 55 documents which comprised of 13.82% from the total number of institutions.
Table 8. Most Influential Institution with a Minimum of Two Publications
Institution Number of Document Percentage (%)
International Islamic University Malaysia 55 13.82%
International Islamic University Malaysia, Institute of Islamic Banking and Finance 36 9.05%
Universiti Kebangsaan Malaysia 25 6.28%
Universiti Teknologi MARA 22 5.53%
Universiti Malaya 21 5.28%
Universiti Utara Malaysia 19 4.77%
Universiti Sains Islam Malaysia 18 4.52%
Universiti Sultan Zainal Abidin 18 4.52%
International Centre for Education in Islamic Finance 16 4.02%
Universiti Putra Malaysia 14 3.52%
Universiti Malaysia Terengganu 12 3.02%
Universiti Teknologi Malaysia Kuala Lumpur 10 2.51%
University of New Orleans 7 1.76%
Azman Hashim International Business School 7 1.76%
Al-Imam Muhammad Ibn Saud Islamic University 6 1.51%
La Trobe University 6 1.51%
Universiti Malaysia Sabah 6 1.51%
Universiti Kuala Lumpur 6 1.51%
University of the Punjab 6 1.51%
Universiti Malaysia Kelantan 6 1.51%
4.10 Citation Analysis
Table 9 summarizes the citation metrics. Extracting data to PoP software would enable researchers to perform extended analysis. Microsoft Excel summarizes only the raw data, but PoP software encapsulates the output of the raw data. PoP software was exploited to study the impact and performance of publications. Extended analysis would benefit the researchers on how they can contribute for future research.
H-index and g-index are the metrics to measure the productivity and citation impact. The h- index shown in the table is 23. It denotes there were 23 Takaful publications with at least 23 citations each throughout the publication years. Further, Table 13 also shows the g-index of Takaful publications. It indicates that there are 30 publications with at least 900 (30x30) citations.
Table 9. Citation Metrics
Item Data
Publication years 1989-2022
Citation years 33
Papers 398
Citations 1978
Cites/year 59.94
Cites/paper 4.97
Cites/author 1.97
Authors/paper 2.69
h-index 23
g-index 30
Table 10 concludes the top 20 highly cited articles in Takaful. Research paper titled ‘The cost efficiency of takaful insurance companies’ written by H.A. Kader, M. Adams, P. Hardwick and research titled ‘Establishing construct validity and reliability: Pilot testing of a qualitative interview for research in takaful (Islamic insurance)’ written by M. Dikko received 52 citations respectively. Both papers received the highest number of citations.
Table 10. Highly Cited Articles
No. Title Authors
(Year) Source Cites Cites
per year Cites per author GS
Rank 1 The cost efficiency of takaful
insurance companies
H.A. Kader, M. Adams, P.
Hardwick (2010)
Geneva Papers on
Risk and
Insurance: Issues and Practice
52 4.33 17 381
2 Establishing construct validity and reliability: Pilot testing of a qualitative interview for research in takaful (Islamic insurance)
M. Dikko (2016) Qualitative Report 52 8.67 52 244
3 Audit committee attributes and firm performance: Evidence from Malaysian finance companies
B.S. Kallamu, N.A.M.
Saat (2015)
Asian Review of Accounting
48 6.86 24 266
4 The roles of mass media, word of mouth and subjective norm in family takaful purchase intention
M. Md Husin, N. Ismail, A. Ab Rahman (2016)
Journal of Islamic Marketing
42 7 14 245
5 Religious influences on consumers' high-involvement purchasing decisions
H. Siala (2013) Journal of Services Marketing
41 4.56 41 316
6 Islamic takaful: Business models, Shariah concerns, and proposed solutions
A.R.A. Wahab, M.K.
Lewis, M.K. Hassan (2007)
Thunderbird International Business Review
39 2.6 13 390
7 Introduction to Islamic Banking and Finance
B. Kettell (2012) Introduction to Islamic Banking and Finance
37 3.7 37 346
8 Determinants of demand on family Takaful in Malaysia
M. Sherif, N. Azlina Shaairi (2013)
Journal of Islamic Accounting and Business Research
37 4.11 19 326
9 Determinants of islamic insurance
acceptance: An empirical analysis F. Ab. Rahim, H. Amin
(2011) International
Journal of Business and Society
34 3.09 17 370
10 Islamic insurance: A modern approach to Islamic banking
A. Khorshid (2004) Routledge 34 1.89 34 393
11 Islamic financial system: The Malaysian experience and the way forward
M. Akram Laldin (2008) Humanomics 33 2.36 33 388
12 Do Muslims intend to participate in Islamic insurance?: Analysis from theory of planned behaviour
M. Md Husin, A. Ab Rahman
(2016)
Journal of Islamic Accounting and Business Research
33 5.5 17 246
13 What drives consumers to participate into family takaful schemes? A literature review
M.M. Husin, A.A.
Rahman (2013)
Journal of Islamic Marketing
33 3.67 17 319
14 Integration of waqf-Islamic microfinance model for poverty reduction: The case of Bangladesh
M.A. Haneef, A.H.
Pramanik, M.O.
Mohammed, M.F. Bin Amin, A.D. Muhammad (2015)
International Journal of Islamic and Middle Eastern Finance and Management
30 4.29 6 271
15 Predicting intention to participate in family takaful scheme using decomposed theory of planned behaviour
M.Md. Husin, A.Ab.
Rahman (2016)
International Journal of Social Economics
30 5 15 252
16 Evidence on the relationship between Takaful insurance and fundamental perception of Islamic principles
R.C. Maysami, J.J.
Williams (2016)
Applied Financial Economics Letters
29 1.81 15 392
17 Perception and adoption of Islamic insurance in Malaysia: An empirical study
L.O. Ayinde, A. Echchabi (2012)
World Applied Sciences Journal
27 2.7 14 336
18 A bibliometric review of takaful literature
A. Khan, M.K. Hassan, A.
Paltrinieri, A. Dreassi, S.
Bahoo (2020)
International
Review of
Economics and Finance
26 13 5 74
19 Governance mechanisms and efficiency: Evidence from an alternative insurance (Takaful) market
Y. Karbhari, I. Muye, A.F.S. Hassan, M.
Elnahass (2018)
Journal of
International Financial Markets, Institutions and Money
26 6.5 7 164
20 Factors that influence individuals’ intentions to purchase family takaful mediating role of perceived trust
S. Aziz, M. Md Husin, N.
Hussin, Z. Afaq (2019)
Asia Pacific
Journal of
Marketing and Logistics
24 8 6 130
4.11 Content Analysis and Future Research Directions
Content analysis has been performed thoroughly based on the clusters provided in the keyword analysis discussion. Thus, the content analysis has been categorized into four different streams with recent publications between 2021 to 2022 to better gauge the major aspects of Takaful publications providing directions for future research based on the gaps highlighted in the literature. This is consistent with Hassan, M.K. et. al (2022) and Hassan, M.K. et. al (2020).
Research streams has been further analyzed and categorized into sub-categories. This analysis adapted the research performed by Hassan, M.K. et. al (2022).
4.11.1 Review of Research Stream 1: Takaful literature development, performance, efficiency, service quality, impact of COVID-19 on service recovery, governance mechanisms, system, risk management, and insurance performance
Takaful products and services have been evolved rapidly and its growing market penetrations have attracted many researchers to conduct study on the industry performance, service quality, governance mechanisms, and risk management. Its performance can be further evaluated based on its financial performance, service quality, and competitive advantage. The higher demand for Takaful research enabled researchers around the world to analyze the literature performance. Hassan M.K. et. al (2022) revealed the empirical studies on Islamic banking are plenty whereas research on Takaful and corporate finance are at emerging state. In addition, detail examination of Shariah audit research based on a systematic literature review has been conducted by Khatib S.F.A. et. al (2022). 53 literature have been derived from Scopus and Web of Science and they found that Shariah auditing research is increasing over time in Malaysian context except for Takaful institutions. The literature shows that the Islamic institutions perform better most of the time while at times, they did not perform as compared to the conventional counterparts. (Hassan M.K. et. al, 2022).
In addition, Kusmayadi D. et. al (2021) performed study on the development of Islamic insurance articles. Data has been gathered from the dimensions.ai database over the period between 2014 to 2021. Bibliometric analysis has been performed through R biblioshiny software. 500 articles have been analyzed. The findings of the analysis show that the development of articles with the theme of Islamic insurance has increased.
Abdul Razak S.H. et. al (2021), Nizar N.S. & Falikhatun (2021), Al-Amri K., et. al (2021), Sukmaningrum P.S.
et. al (2022), and Al Arif M.N.R. & Firmansyah B. (2021) investigate Takaful industry based on the financial performance. Abdul Razak S.H. et. al (2021) compare the performance between Takaful and insurance companies and they revealed that both institutions perform at par in terms of their premium. They found out that Takaful has better investment income and foreign owned firms perform better than local firms. Nizar N.S. & Falikhatun (2021) examines the effect of Islamic intellectual capital on takaful financial performance in Southeast Asia and the Middle East between 2016 until 2019. 155 observations have been conducted among Sharia insurance firms in Southeast Asia and Middle East countries. They revealed Structural Capital Efficiency has a positive and significant effect while
Capital Employed Efficiency has a negative and significant impact on Takaful financial performance. Besides, Human Capital Efficiency has no significant effect on Takaful financial performance.
Al Arif M.N.R. & Firmansyah B. (2021) examined the relationship between market structure and profitability in Indonesia Takaful industry specifically the Islamic life insurance. The regression technique with panel data has been employed and they found out that market structure affected the profitability of Islamic life insurance industry and there is no collusive behaviour in the industry. Ismail M. (2021) investigated the effect of the gross domestic product (GDP) and population on the investment yield of Indonesia sharia insurance in Indonesia. It was revealed that GDP did not influence the investment yield but the population did influence the investment yield. Further, an empirical study on the stock returns of Islamic and conventional insurance has been conducted by analyzing daily closing stock prices of 20 Saudi insurance companies. The result of the study revealed that Islamic and Non-Islamic Stock returns have negative correlation. (Benlagha N. & Hemrit W., 2021)
The performance of Takaful companies can also be analysed through Board of Directors effectiveness (BDE) and Shariah Committee quality (SCQ). Eldaia M. et. al (2020) measured the BDE and SCQ by using indices and return of asset and return of equity has been used as proxies to measure performance. They revealed there are positive association between BDE and performance where Muslim, independent, and female directors are attributes which lead to performance. In addition, high level of SCQ integrated with high level of BDE also could improve performance.
Furthermore, performance of Takaful Operators (TOs) in Malaysia has been evaluated by applying data envelopment analysis technique and using ratio analysis gathered from annual reports. The study was performed to examine the effects of additional cost imposed by the goods and services tax (GST) implementation on TOs performance. The result proved there is a decline in average technical efficiency for takaful operators upon GST implementation (Che Mohd Salleh M., 2022).
Mao J., et. al (2022) revealed that service recovery performance (SRP) is very important for the takaful insurance industry to maintain and attract new clients for the survival and continued of Takaful business. The study used convenient sampling technique data collected from the employees working in the Takaful industry in Pakistan. There is a link between human resources management practices (HRMP) such as human capital, training, job description, teamwork, empowerment, and rewards and service recovery performance (SRP) directly and indirectly through the employee commitment.
Mihardjo L.W.W. et. al (2021) examine key human resources practices namely human capital, training and rewards which could influence employee commitment and SRP of Takaful industry agents in Southeast Asian region.
It is found that human capital, training and reward significantly influence commitment of employee which eventually influenced the SRP to be improved further.
Al-Amri K., et. al 2021 analyzed Takaful efficiency using data envelopment analysis. Return on equity, return on assets, and insolvency risk have been used as financial measurements to test differences in performance between the mudharaba (profit-sharing) and the wakala (fee-based) models for compensating managers. The result of the study proves that the mudharaba model performs better than the wakala model. Sukmaningrum P.S. et. al (2022) revealed that Family Takaful in Malaysia had called productivity due to increase in technological change but still low in technical efficiency. They added that technological innovation and delivery of services could increase productivity.
Abdur Rehman M, et. al, 2021 examines specific dimensions of service quality and relationship marketing on customers’ perceptions of corporate image in the Takaful industry. Malaysia and Saudi Arabia were selected as sample because they are regarded as the two fast-growing markets for Islamic financial services. Based on Malaysian context, personalization, reliability and tangibility have been chosen as positive perceptions of service quality and Islamic ethical behaviour and structural bonds have been selected as positive perceptions of relationship marketing dimensions which have a significant influence on the corporate image. Alternatively, the Saudi Arabian opted assurance and reliability as positive perceptions of service quality and Islamic ethical behaviour, structural bonds and financial bonds as positive perceptions of relationship marketing dimensions which have significant impact on the corporate image while Osman I. et. al (2021) analyzed a proposed model based on a combination of relationship marketing and service quality dimensions as a significant predictor of corporate image.
COVID-19 Pandemic has a negative impact on businesses and individuals (Eldaia M. et. al (2021). Aldoghan M.
(2021) & Eldaia M. et. al (2021) evaluate the impact of COVID-19 in Takaful industry. Aldoghan M. (2021) found out human capital, training, rewards, internal career opportunities, job description, and staff participation had a positive and significant relationship with the service recovery performance while Eldaia, M. et. al (2021) revealed that Islamic economy being affected by the virus incidence.
Further, this research stream also analyses Corporate Governance (CG) strength. Based on study conducted by Mohd Zain F.A. et. al (2021), CG strength has a positive and significant effect on the voluntary adoption of AAOIFI Disclosure Standards by takaful operators which indicate its important role in the TOs information disclosure in the annual reports.
Further, study conducted on governance mechanisms indicated the larger size of BOD and the higher number of outside directors will eventually give positive impact on wakalah Takaful insurance in South East Asia (SEA) region and nondual functions and a larger size of Shariah board together with a highly-concentrated ownership structure
have a positive impact on the Takaful insurance performance in both the SEA and GCC regions. The higher the Shariah board meetings resulted in higher performance of all types of Takaful insurance providers in the sample selection. The moderating effect of the director’s seniority found that it negatively moderates the relationship between the governance mechanisms and the Takaful performance in both regions (Sallemi N. et. al 2021).
A feasibility study that examines qualitatively the advantages, challenges, and variables related to the implementation of the National Health Insurance (NHI) system in Saudi Arabia has been conducted by Puteh S.E.W.
et. al (2022). It is concluded that this is a viable alternative scheme
Study on Shariah compliance risk management in the provision of wakaf-zakat housings has been conducted by Puteri Nur Farah Naadia M.F. & Khairuddin A.R. (2021). They revealed that risks must be properly managed as to mitigate risk of loss and damages to properties but there is inadequate of risk management guidelines in the provision of wakaf-zakat housings. Further, Muhamat A.A., (2022) examined the risk management part of TOs. The study revealed that TOs are part of the critical chain in the risk management process as they involve in issuing compensation to victims (takaful participants).
Finally, this research stream also inclusive of research on insurance performance. Lim Q.-M. et. al (2021) conducted study on conventional insurance firms in Malaysia operating between 2000 and 2017. The study revealed that life insurers are more efficient and competitive than general insurers.
4.11.2 Review of Research Stream 2: Islamic finance
Over the past decades Islamic finance has expanded immensely across the globe. Its presence founded in many countries including Muslim-majority post-Soviet Central Asian and Transcaucasian region. It is undeniable that the expansion of Islamic finance has attracted keen interest among key players in politics and business (Nagimova A.Z.
2022).
This section of research stream categorised all the discussion related to the segments of Islamic financial market, Islamic finance discussions namely Islamic financial literacy Takaful, Zakat, Hibah, Islamic micro finance, micro entrepreneurship, and Islamic social teachings which provide the social welfare solutions like Zakat and Waqf.
Nagimova A.Z. (2021) & Nagimova A.Z. (2022) study on the Islamic financial market by focusing in Kazakhstan market. The former revealed that despite the moderate market volumes represented by Islamic bank, Islamic windows, Islamic leasing company and microfinance companies, Islamic finance in Kyrgyz Republic has further growing with the presence of many large foreign Islamic banks in the country. The latter analyzed the growth of the Islamic Finance industry in Kazakhstan, and its dependency on two key investors: Islamic Development Bank and Abu Dhabi Government. Despite the small share of Islamic banks and Islamic leasing (ijara) companies, Kazakhstan is deemed potential for sukuk issuance and Islamic insurance (takaful) development.
Benamraoui A. (2021) critically examined the effect of COVID-19 on the world economy and financial markets.
The author further discussed the actions taken by the governments and corporations improve the resilience to withstand the impact of the pandemic across the globe. Data was taken from various sources which inclusive of the International Monetary Fund (IMF), Organization for Economic Co-operation and Development (OECD), the World Bank, and other relevant secondary data sources. The study found out that Islamic finance and economy provides a tremendous solution through its investment instruments and key principles namely profit and loss sharing, Takaful, and Waqf to combat with the negative economy impacts on economic output, unemployment, and market volatility.
Further, study on developing a valid and reliable Islamic financial literacy (IFL) scale has been conducted by Dinc Y. et. al (2021). They successfully developed a practical scale for countries inclusive of countries which do not operate Islamic financial institutions. The scale provides good fit indexes and reliability scores.
Studies on Takaful have been conducted by Alokla J., et. al (2022) and El Attar A. & El Hachloufi M. 2022. The former developed an intense understanding of the solvency factors of the Gulf Cooperation Council (GCC) and Malaysian Takaful firms. They revealed that firm size and wakalah fees significantly decrease solvency while return on assets and the risk retention and investment income ratios are not significantly associated with solvency. The latter designed an optimization program that could obtain a marketable and profitable takaful product by using the retakaful as a safety and technical support tool.
The effectiveness of Zakat in improving welfare is questionable. Arifin N. & Anwar A.Z. (2021) conducted interviews and in-depth observations from national zakat management organizations in Indonesia. It is found that Zakat helps the economy in which the recipients channelled the money for business start-up but it is proved that the payment is not efficient enough.
Study on Hibah has been conducted by Rahim A.K.A. et al (2021). To date, there are many forms of hibah namely Trust Hibah (Hibah Amanah), Conditional Hibah (Hibah Mu'allaqah), Hibah with discussion (Hibah Bi al-Thawab), hibah in saving account (Wadiah) and rental (al-Ijarah) accounts and hibah in Takaful benefit. This study revealed that Hibah could incentivize clients by storing their cash in the related financial institutions.
Micro entrepreneurship also has been discussed in this research stream. Research done by Alrashedi M.Y. et. al (2021) analyzed that micro-takaful and entrepreneurship training act as effective moderating and mediating factors between the Islamic microfinance and micro-entrepreneurship in Yemen. The findings from 290 responses in Sana’a
Yemen revealed that micro entrepreneurship is at critical level and the unemployment issues still continue while Microfinance has a significant and positive impact on Micro entrepreneurship. Migdad A.M. (2022) also stressed on Islamic microfinance (IsMF). The author analyzed the correlation between IsMF and Takaful in volatile economic conditions and further proposed the model for sustainable application. Enacting laws to protect micro-enterprises and collaborations between institutions is deemed unavoidable.
Tajmazinani A.A. & Mahdavi Mazinani Z. (2021) conducted a study on series of strategies and solutions for providing social welfare according to Islamic teachings which inclusive of Zakat and Waqf. They provided a conceptual framework based on the Islamic teachings like takaful (co-operation), tawazun, and Tadawul. The practice of social welfare includes both obligatory which is Zakat and non-obligatory actions namely Waqf by the Islamic state and individual Muslims.
4.11.3 Review of Research Stream 3: Takaful rules and regulations and Shariah permissibility
Malaysia is regarded as the leading country in the segment of Takaful (Riad M.R. et. al, 2022). It also plays a proactive approach when it comes to providing standards and guidelines for Takaful Operators (TOs). Muhamad F.H., (2021) stated that with its growing potential in Islamic banking, Malaysia is set to become a hub for takaful in the Asia region. Malaysian market is placed in the top three in the world.
This section of research stream groups literature that discuss the aspects of rules and regulations together with Shariah guidelines that TOs need to abide with. Fikri S.M. et. al, (2022) and Riad M.R. et. al (2022) discussed the legal aspects of Takaful product and industry while Shamsudheen S.V. et. al (2022), Saputra J. et. al (2021), and Soualhi Y. & Djafri F. (2021) discussed the Shariah guidelines embedded in Takaful operation and products.
Fikri S.M. et. al (2022) conducted study on Micro- takaful. The study revealed that there is deficit in trust among public members toward insurance and takaful. Thus, by matching the rules and guidelines of Micro- takaful, further scrutinized on the extended distribution channel is deemed necessary.
A study on comparative legal research approach has been conducted by Riad M.R. et. al (2022). They employed analytical method in studying Moroccan legal documents in comparison to Malaysian legal documents related to Takaful. It is found that the Moroccan law is comprehensive and could facilitate the emerging Takaful market.
Shamsudheen S.V. et. al 2022 analyzed the impact of information overload of Takaful underlying contracts on the sales performance. The study suggested that the management of TOs should equip the salesforce with Shariah knowledge and nature which underlying the Takaful contracts and higher attention should be channels to the salesperson at the direct selling channel as the slowing growth of the Takaful market could be due to the “saddling effect” of information.
Islamic scholars are still under discussion on the validity of life insurance in Takaful market. Saputra J. et. al (2021) revealed that there are some concealed elements and some absent points related to the concept of loss and surplus sharing practiced by Takaful Operators (TOs). Thus, they developed a new model of the premium for an equity-linked policy (Unit-linked product) by considering the properties of Takaful contracts namely Tabarru and Mudarabah.
Study on Sharī'ah compliance of the pricing elements in Familty Takaful products has been performed by Soualhi Y. & Djafri F. (2021). They conducted open-ended interviews as well as content analysis to examine the conformity of family takāful pricing mechanism with the Sharī'ah principles of price-setting (tas'īr). It is revealed that the assumptions of mortality and morbidity are Sharī'ah compliant are based on the principles of ibāhah (permissibility), maslahah (public interest), istiqrā' (induction) and 'urf (custom).
4.11.4 Review of Research Stream 4: Customers’ behavioural aspect or customer purchase intention towards Takaful products
Takaful is regarded as a financial instrument that could replace the conventional insurance. It is properly regulated and monitored by the authority and all the products must comply solidly with Shariah guidelines. The Takaful premiums not only contributed by the Muslims’ policy holder but also inclusive of non-Muslims’ contributor. In UAE, although 76% of the population is Muslim, its share of Takaful business is less than 10% despite being the pioneer in the Takaful industry (Rizwan S. et. al, 2021). Similar case in Malaysia, a study by Abdullah N. et. al (2021) revealed that only 40% of the citizens own a life insurance or family Takaful although majority of the population is Muslim. They also added many untapped markets segment in insurance industry for the iGeneration population that Takaful agent can focus on.
Research stream number four analyzed customer purchase intention towards Takaful products. Riaz S. et. al (2021), Sarfraz A. & Khurshid Mian A. (2021), and Poan R. et. al (2021) highlighted the significant and positive relationship between religiosity and customer participation in Takaful. Akhter W., et. al. 2021 also agreed that higher Shari’ah perception could positively affect the customer satisfaction in the Takaful industry. Apart from religiosity, product awareness and subject norm also influence customer purchase intention in Takaful (Poan R. et. al, 2021).
Riaz S. et. al (2021) added reputation as another factor that could influence customer buying interest of Family
Takaful product. Finally, Muhamad F.H. (2021) stressed that the Takaful products itself and technology could influence the buying interest of customers.
Sarfraz A. & Khurshid Mian A. (2021) also added religiosity mediate the relationship of traditional value and consumer adoption of Takaful as multiple factors of confusion hinder and prevent the existing and potential customers to adopt Takaful product and services. Among the confusions are lack of consensus among religious scholars in standardizing Takaful business model, lack of knowledge or awareness, and the lack of skilled or trained personnel.
Ibrahim M.A. et. al, 2021 investigated the factors that can influence Bumiputera contractors’ acceptance of the Contractor’s All Risks (CAR) Takaful (Islamic insurance) product using the theory of reasoned action (TRA). They agreed on the fact that religiosity is the most important factor that influence Bumiputera contractors’ acceptance of the CAR Takaful product.
Poan R. et. al (2021) examined purchase intention on Takaful products and services in Indonesia and found that trust is vital in influencing the purchase intention and among the factors that leads to trust are religiosity, awareness, and subjective norm.
Muhammad M.Z. et. al (2021) conducted study on factors that could influence entrepreneurs to choose Takaful over conventional insurance in Kota Bharu, Kelantan. Among the factors that could affect the respondents purchase behaviour on Takaful products are product features, expertise, satisfaction, understanding and religiosity.
In contrast, Rizwan S. et. al (2021) emphasized that religion is not a significant moderator that could influence purchase intentions of Health Takaful customers in the UAE. They further revealed brand equity and customer perceptions towards Takaful products have a positive relationship.
Muhamad F.H. (2021) analyzed the relationship between technology, product offered, and consultancy which is deemed to have significant relationship with customer satisfaction who purchased takaful products. Survey has been conducted on 150 respondents among the community in Kelantan. The findings revealed that indicated that products and consultancy have a strong positive relationship with customer satisfaction while technology is deemed to have a moderate positive relationship with customer satisfaction.
Further, Bangaan Abdullah H.-S. et. al. (2021) conducted study on Micro-takaful in Malaysia. They revealed married and employed women are more likely to purchase a micro takaful plan compared with male as gender and knowledge do have positive and significant effect on the inclination to own a Micro-takaful plan.
iGeneration population focus on internet of thing. The behaviour towards purchasing life insurance mainly focus on service quality variables of insurance company as well as perceived value of life insurance policy while the role of agent does not have significant impact on the dependent variable of iGeneration behavior (Abdullah N. et. al, 2021).
5. Conclusion and Suggestion
This study focused to analyze trends and research development in the field of Takaful by employing bibliometric analysis. According to Moed, H.F. et.al (2002), a bibliometric analysis may provide the basic picture of interaction between contributing authors in the field under consideration and at the same time may be able to provide quantitative outcomes. Although bibliometric analysis has its own objective, but it still has certain limitations. First, the keywords are confined to "Takaful", "Islamic insurance", "Islamic mutual insurance", and "Islamic cooperative insurance"
through the search query on research title, abstract, and keyword. Different keywords may provide different outcomes.
Further screening needs to be done as there were documents not related to the study. Future research can be conducted with other search queries.
Second, Scopus was the only database used to run the search query. Documents which are not being indexed by Scopus have not been included in the study. Future research may also include other database such as Web of Science and Google Scholar to expand the outcomes of the documents produced. Despite the limitations mentioned above, this research has contributed to the current contribution by providing the overview of Takaful research trends since its first publication. This research also compliments and expands previous studies on Takaful.
Acknowledgement
The authors would like to express their gratitude to the Ministry of Higher Education for the grant provided to execute this project under the grant code: FRGS/1/2021/SS01/USIM/02/8(KPT) - USIM/FRGS/FEM/KPT/51221 (USIM).
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