The effect of compensation on the insurance surplus and the profitability of takaful insurance companies : a case study of the islamic insurance company in jordan, 2010-2019

Abstract EN

This study aims to investigate the effect of compensation on both the insurance surplus and the profitability of Takaful insurance companies by conducting a standard survey on the Islamic insurance company in Jordan during the period 2010-2019.

After underwent the study, we concluded that there is an adverse effect of the compensation paid on the insurance surplus remaining in the Takaful Fund whereas, increasing the compensation value by one degree leads to a decrease in the insurance surplus by (0.

053), that is, increasing the compensation value by one degree leads to an increase in profits by (0.

174).

The study proved that the compensations don't affect the capital or the profits of the Takaful insurance company because they are paid from subscribers' accounts and the total available premiums.