Modeling the premium and contract properties of family Takaful : Islamic life insurance
Other Title(s)
نمذجة قسط و خصائص عقد التكافل الأسري : التأمين الإسلامي على الحياة
Joint Authors
Saputra, Jumadil
Kusairi, Suhal
Sanusi, Nur Azura
Source
Journal of King Abdulaziz University : Islamic Economics
Issue
Vol. 30, Issue 2 (31 Jul. 2017), pp.135-157, 23 p.
Publisher
King Abdulaziz University Scientific Publishing Center
Publication Date
2017-07-31
Country of Publication
Saudi Arabia
No. of Pages
23
Main Subjects
Abstract EN
The premium is a deterministic function to compensate for losses due to random events, and a crucial element for the operation of the standard insurance company.
This paper focuses on the practice of family takāful and considers properties of the contract in determining the premiums comprehensively and in a way that makes them Sharīah-compliant.
We have developed a new mortality derivative formula and model of the premium for an equity-linked policy (unit-linked product).
We have adapted the option pricing of the Black-Scholes model for periodical premiums, taking into account a minimum death benefit, the value of surrender option, and maturity guaranteed payoff.
We have also added some assumptions for the underlying asset prices following negative discrete dividend extensions from the dynamic escrowed model.
The purpose is to obtain an unbiased option price for the underlying asset.
We found it to be a satisfying product with a fair periodical premium, which has great flexibility in its features and complies comprehensively with Sharīah law.
American Psychological Association (APA)
Saputra, Jumadil& Kusairi, Suhal& Sanusi, Nur Azura. 2017. Modeling the premium and contract properties of family Takaful : Islamic life insurance. Journal of King Abdulaziz University : Islamic Economics،Vol. 30, no. 2, pp.135-157.
https://search.emarefa.net/detail/BIM-780395
Modern Language Association (MLA)
Saputra, Jumadil…[et al.]. Modeling the premium and contract properties of family Takaful : Islamic life insurance. Journal of King Abdulaziz University : Islamic Economics Vol. 30, no. 2 (Jul. 2017), pp.135-157.
https://search.emarefa.net/detail/BIM-780395
American Medical Association (AMA)
Saputra, Jumadil& Kusairi, Suhal& Sanusi, Nur Azura. Modeling the premium and contract properties of family Takaful : Islamic life insurance. Journal of King Abdulaziz University : Islamic Economics. 2017. Vol. 30, no. 2, pp.135-157.
https://search.emarefa.net/detail/BIM-780395
Data Type
Journal Articles
Language
English
Notes
Includes bibliographical references : p. 155
Record ID
BIM-780395