Effect of Sharia Financing on Sharia Insurance Premium Growth

DOI

10.2991/aebmr.k.201222.024How to use a DOI?

Keywords

Sharia, Islamic, Insurance, Bank, Financing, Premium, Growth

Abstract

This research is aimed to analyze and determine the effect of sharia financing on sharia insurance premium growth, determine the influence of each sharia banking financing, and formulate the strategies needed to increase the growth of general Islamic insurance premiums. Specifically, this research uses the Autoregressive Distributed Lagged (ARDL) model to analyze whether sharia insurance is determined and influenced by sharia financing. This research uses sharia financing forms consisting of murabaha, musharaka, mudharabah, istisna and ijarah as independent variables and sharia general insurance premium as the dependent variable. This research uses monthly time series data from January 2014 to November 2019. ARDL model findings show that the financing of istisna and ijarah did not pass the test. Musharaka and mudharabah financing are found to have a positive influence. Murabaha financing, which is the largest financing in the banking sector, seems not to have an effect, even though the previous 3 periods had a slight negative effect on the growth of sharia insurance. The reasons could be due to the small funding of ijarah and isthisna so that it did not have an impact on growth. Furthermore, the capacity of sharia insurance is still small, and there is lack of socialization of sharia insurance, as well as the premium that determines the cause of termination of funding due to repayment or claims. This research encourages the synergy of sharia insurance business with sharia banking, especially in sharia financing, sustainable sharia financial literacy and mutually supportive regulatory policies in the sharia financial industry and an increase in sharia insurance capacity so that all sharia financing can be covered in sharia insurance.

Copyright

© 2020, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Arifia Indah Liany
PY  - 2020
DA  - 2020/12/23
TI  - Effect of Sharia Financing on Sharia Insurance Premium Growth
BT  - Proceedings of the International Conference on Business and Management Research (ICBMR 2020)
PB  - Atlantis Press
SP  - 163
EP  - 169
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.201222.024
DO  - 10.2991/aebmr.k.201222.024
ID  - Liany2020
ER  -