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The Development of Sharia Insurance and Its Future Sustainability in Risk Management: A Systematic Literature Review

Author

Listed:
  • Rini Cahyandari

    (Department of Mathematics, Faculty of Science and Technology, UIN Sunan Gunung Djati, Bandung 40614, Indonesia)

  • Kalfin

    (Doctoral Program of Mathematics, Faculty of Mathematics and Natural Sciences, Universitas Padjadjaran, Sumedang 45363, Indonesia)

  • Sukono

    (Department of Mathematics, Faculty of Mathematics and Natural Sciences, Universitas Padjadjaran, Sumedang 45363, Indonesia)

  • Sri Purwani

    (Department of Mathematics, Faculty of Mathematics and Natural Sciences, Universitas Padjadjaran, Sumedang 45363, Indonesia)

  • Dewi Ratnasari

    (Study Program of German Literature, Faculty of Cultural Sciences, Universitas Padjadjaran, Sumedang 45363, Indonesia)

  • Titin Herawati

    (Department of Fisheries, Faculty of Fisheries and Marine Science, Universitas Padjadjaran, Sumedang 45363, Indonesia)

  • Sutiono Mahdi

    (Study Program of English Literature, Faculty of Cultural Sciences, Universitas Padjadjaran, Sumedang 45363, Indonesia)

Abstract

The need for Sharia insurance products in the Muslim community continues to significantly increase. Sharia insurance offers sustainability in overcoming the risk of economic loss based on the principles of Islamic law. In addition, Sharia insurance can be a sustainable solution in providing risk management funds. This study aimed to analyze the development and sustainability of Islamic insurance as an alternative form of risk management, as well as its sustainability in the future. The general review is still in the form of the products offered and operational system models in the Sharia insurance industry. The systematic literature review method was used to obtain a visualization and general description of Islamic insurance, employing 774 data articles from 2010 to 2022. From the results of the analysis, it was found that research discussing Islamic insurance has demonstrated significant developments every year. Mitigating risks by offering the principles of Islamic law represents added value for the Islamic insurance industry. In addition, five models of Sharia insurance systems have been introduced and used; namely, the Mudharabah model, the modified Mudharabah model, the Wakalah model, the hybrid model, and the Waqf model. However, the products offered in Sharia insurance are not too numerous and are still focused on individual risk. Based on these results, Sharia insurance will undergo development in the future in terms of both the products offered and risk management. Of course, it can also lead to a transition to the development of sustainable Sharia insurance.

Suggested Citation

  • Rini Cahyandari & Kalfin & Sukono & Sri Purwani & Dewi Ratnasari & Titin Herawati & Sutiono Mahdi, 2023. "The Development of Sharia Insurance and Its Future Sustainability in Risk Management: A Systematic Literature Review," Sustainability, MDPI, vol. 15(10), pages 1-23, May.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:10:p:8130-:d:1148772
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    References listed on IDEAS

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    1. Wang Tong & Muhammad Ali & Chin-Hong Puah & Choi-Meng Leong & Xiao Yuping, 2024. "Islamic insurance: a review and research agenda," Journal of Financial Services Marketing, Palgrave Macmillan, vol. 29(4), pages 1464-1486, December.
    2. Kalfin & Sukono & Sudradjat Supian & Mustafa Mamat, 2023. "Model for Determining Insurance Premiums Taking into Account the Rate of Economic Growth and Cross-Subsidies in Providing Natural Disaster Management Funds in Indonesia," Sustainability, MDPI, vol. 15(24), pages 1-15, December.

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