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Evaluation of the Efficiency of Family in Takaful Insurance Selected Countries Using the Stochastic Frontier Model
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OMID ALI Adeli1   , Seyyed Reza Hosseini2 , MASUME VALI3 |
1- Associate Professor, Department of Islamic Economics, Faculty of Economics and Administrative Sciences, University of Qom, Qom, Iran
2- Associate Professor Hohza Research Institute and University
3- Affiliated Faculty Member, Department of Accounting, Faculty of Business, Islamic Azad University, Karaj Branch, Karaj, Iran , mandana.vali@yahoo.com |
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Abstract: (11 Views) |
Islamic insurance, particularly Takaful insurance, plays a significant role in financing and supporting households in Islamic countries. Evaluating the efficiency of this type of insurance can help improve and expand it in other countries, including Iran. Malaysia, the UAE, Jordan, and Saudi Arabia, as leading countries in the development of Takaful insurance, have provided valuable experiences that can serve as suitable models for other nations. This study evaluates the efficiency of family Takaful insurance in these countries during the period from 2019 to 2022 and offers suggestions for implementing this insurance system in Iran. For data analysis, the stochastic frontier model and quantile regression were employed to identify internal and environmental factors affecting efficiency. The results indicated that internal factors—including the number of employees, operational efficiency, premium growth, costs, and return on assets—have the most significant positive and meaningful impact on insurance efficiency, and coordinated improvement of these factors is key to enhancing productivity and profitability. The environmental index showed only a limited effect in high-efficiency firms, and a considerable level of technical inefficiency was also identified. Based on these findings, it is recommended that managers and policymakers of Takaful insurance in Iran and other countries focus on optimizing internal factors and managing inefficiency by designing targeted, evidence-based programs to enhance efficiency and productivity. This approach can improve performance, increase premium levels, and strengthen policyholder satisfaction.
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Article number: 1 |
| Keywords: Family Takaful Insurance, Efficiency, Stochastic Frontier Method, Quantile Regression, Investment |
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Full-Text [PDF 929 kb]
(7 Downloads)
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Article type: Research |
Subject:
Special
Received: 2025/06/4 | Accepted: 2025/09/24 | Published: 2026/01/30
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