Abstract
Purpose of this study is to analyze the performance in terms of profit of different takaful models being used in different countries in the world. It is both quantitative and qualitative research. In qualitative research, literatures is reviewed by using content analysis technique. Many takaful models are being used by many takaful operators i.e. Wakala, Wakal-Waqf, Mudharabah, Mudharabah-Wakla. For examining performance of different takaful models of five takaful operators, Secondary data on profit earning from 2008 to year 2017 is taken. Results and graphs represent the higher performance of Abu Dhabi National Takaful working on Mudharabah and Wakala Model which showed higher profit as compared to all takaful operators. The finding of this study is essential for Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) for ensuring the standardization of the services and structures that could be given within the frame of mutual help. Takaful operators who can also use the above model i.e. Mudharabah and Wakala Model for enhancing their performance in financial market of insurance. Governments should enact a law for operations and rulings of standardized takaful models adopted by takaful operators and liberalize the takaful market via removal of tariff.
Highlights
In this world, risk exists in every course of life and people are interested to mitigate it
Global takaful market comprises on family and general takaful is growing especially in gulf regions and Malaysia
They can adopt wakalawaqf model on which many shariah scholars agree on compliance of sharia principals
Summary
Risk exists in every course of life and people are interested to mitigate it. In 1985, the Grand Counsel of Islamic scholars (Majma Fiqh Al-Islami) in Makkah, Saudi Arabia, permitted takaful system as the substitute form of insurance written in conformity with Islamic Sharia. It is a concept of defense for the good of civilization. The Grand Counsel accepted this system as a system of cooperation and joint help but the accurate manner regarding operation of takaful was not discussed as this task was delegated to Islamic scholars and insurance practitioners to resolve the execution plan. Recommendations are given in this study pertaining to solution of enhancing the performance of takaful operators in the world
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