Abstract

The paper evaluates the performance of the Takaful and insurance companies in Malaysia. It examines the impact of ownership, business model, and market structure on conventional and Takaful companies’ performance. The inter-firm comparisons provide information about the performance and competitiveness of firms operating under different modes of business. The study adopts the unbalanced panel data approach with Panel Corrected Standard Error (PCSE) regression to analyse the data of 44 Malaysian Takaful and insurance companies with 255 firm observations over the period from 2011 to 2016. The study’s findings show that Takaful and insurance companies perform at par in terms of their premiums. However, Takaful has better investment income. Foreign-owned firms perform better than local firms. The efficient market hypothesis is more powerful than the structural conduct hypothesis in explaining the firms’ performance. The study’s implications are expected to help improve and develop the Takaful and insurance sector as an efficient industry in-line with regulation changes. To the best of our knowledge, this paper is the first to compare the Takaful with conventional insurance in Malaysia concerning their performance, market structure, and ownership.

摘要

本文评估了回教保险和马来西亚保险公司的表现。它研究了所有权，业务模型和市场结构对传统和回教保险公司业绩的影响。公司间的比较提供了有关在不同业务模式下运营的公司的绩效和竞争力的信息。该研究采用不平衡面板数据方法，采用面板校正标准误差（PCSE）回归，分析了2011年至2016年期间44家马来西亚回教保险和保险公司的数据，其中有255个公司观察结果。研究结果表明，回教保险和保险公司的表现就其保费而言是同等的。但是，回教保险有更好的投资收益。外资公司的业绩要好于本地公司。有效的市场假说在解释企业绩效方面比结构性行为假说更有力。该研究的意义有望帮助改善和发展回教保险和保险业，使其成为符合法规变化的高效行业。据我们所知，本文是第一个将回教保险与马来西亚传统保险的绩效，市场结构和所有权进行比较的报告。