Efficiency, Stability, and Productivity on Indonesian Islamic Insurance Industry
DOI:
https://doi.org/10.58968/isf.v3i1.237Keywords:
Efficiency, Stability, Productivity, Malmquist Index, TakafulAbstract
This study attempts to analyze the productivity level of Takaful industry in Indonesia, both in terms of changes of its efficiency and also its technological. There are two things that are calculated in Malmquist index measurement that is catch-up effect and frontier shift effect. Findings from the results are very interesting. The average value of the overall efficiency of Takaful industry in Indonesia is relatively medium at 77.8%, while the mean standard deviation is 0.17. This indicates the enough good performance of Takaful industry in Indonesia. In general, there has been an increase in the level of productivity of Takaful institutions in Indonesia in the period 2016 to 2018, even though its very small. The increase in productivity growth (1.076) of Takaful institutions in Indonesia is generally caused by technological change (1.078) instead of changes in efficiency (0.998). Thus the service of Takaful institutions is needed which is more innovative in relation to the development of technology in the future.
Downloads
References
Avenzora Ahmad dan Jossy P. Moeis. (2008) “Analisis Produktivitas dan Efisiensi Industri Tekstil dan Produk Tekstil di Indonesia tahun 2002-2004. Disertasi pada FE Universitas Indonesia, Jakarta.
Abidin and Endri. (2010), “Kinerja efisiensi teknis bank pembangunan daerah: Pendekatan data envelopment analysis (DEA)”, Jurnal Akuntansi dan Keuangan, Vol.11, No.1, pp.21-29.
Banker, R.D., Charnes, A., and Cooper, W.W. (1984). “Some Models for Estimating Technical and Scale Inefficiency in Data Envelopment Analysis”, Management Science, 30 (9), 1078-92.
Benarda, Sumarwan, U., and Hosen, M.N. (2016). “Tingkat efisiensi industri asuransi jiwa syariah menggunakan pendekatan two stage data envelopment analysis”, Jurnal Aplikasi Bisnis dan Manajemen, Vol.2, No.1, pp.64-72.
Bjurek, Hans. (1996). The malmquist total factor productivity index, The Scandinavian Journal of Economics, Vol. 98 (2).
Caves et.al. (1982). The Economic Theory of Index Number and The Measurement of Input, Output and Productivity. Econometrica, 50 (6).
Charnes, A., Cooper, W.W., and Rhodes, E. (1978). “Measuring the Efficiency of Decision Making Units”, European Journal of Operation Research, 2, 6, 429-44.
Coelli.T.I, Rao, D.S.P. and Battese, G.E. (1998). Introduction to Efficiency and Productivity Analysis, Boston: Kluwer Academic Publisher.
Coelli, T.J, Rao, D.S.P., Prasada Rao, Christoper J. O’Donnel and G.E. Battese. (2005). Introduction to Efficiency and Productivity Analysis, (Second Edition), Boston: Kluwer Academic Publishers.
Cooper, William W., Seiford, Lawrence M., and Tone, Koru. (1999). A Comprehensive Text with Models, Application, References and DEA-Solver Software, Boston: Kluwer Academic Publisher.
Cooper, et al. (2002). Data Envelopment Analysis. Boston: Kluwer Academic Publisher.
Cooper, William W, Lawrance M. Seiford and Joe Zhu. (2010). Handbook on Data Envelopment Analysis. London: Springer.
Farrell, M.L. (1957). “The Measurement of Productive Efficiency”, Journal of The Royal Statistical Society, 120, p.253-281.
Islamic Banker Association. (2017). Global Islamic Finance Report 2017.
Kader, Abdul H., Adams, M., Hardwick, P., and Kwon, W.J. (2014), “Cost efficiency and board composition under different takaful insurance business model”, International Review of Financial Analysis, Vol.32, pp.60-70.
Kamarudin. et.al. (2008). Assessing Production Efficiency of Islamic Banks and Conventional Bank Islamic Windows in Malaysia. International Journal of Business and Management Research. Vol. 1 (1):. 31-48. 2008.
Khan, Atiquzzafar, and Noreen, Uzma. (2014), “Efficiency measure of insurance v/s takaful firms using DEA approach: A case of Pakistan”, Islamic Economic Studies, Vol.22, No.1, pp.139-158.
Nurfalah, I., Rusydiana, A.S., Laila, N., and Cahyono, E.F. (2018), “Early warning to banking crises in the dual financial system in Indonesia: The markov switching approach”, JKAU: Islamic Economics, Vol.31, No.2, pp.133-156.
Oscar, Yazar (2008), Health Care Benchmarking and Performance Evaluation: An Assessment using Data Envelopment Analysis. Springer, Newton MA.
Otoritas Jasa Keuangan. (2018). Statistik Perbankan Syariah Indonesia April Tahun 2018.
Ozdemir, Asli. 2013. “Integrating analytic network process and data envelopment analysis for efficiency measurement of Turkish commercial banks”. Banks and Bank Systems Volume 8 issue 2, 2013.
Rahayu, S.S., and Rusydiana, Aam S. 2018. “Measuring the efficiency of Pesantren cooperatives: Evidence in Indonesia”, Global Review of Islamic Economics and Business, Vol.6, No.2, pp.103-116.
Ramanathan, R. (2003). An Introduction to Data Envelopment Analysis: A Tool for Performance Measurement. London: Sage Publications.
Rani, L., Rusydiana, A., and Widiastuti, T. 2017. “Comparative analysis of Islamic bank’s productivity and conventional banks in Indonesia period 2008-2016”. In 1st International Conference on Islamic Economics, Business and Philanthropy (ICIEBP 2017), pp. 118-123.
Rusydiana, Aam S., and Yulizar D. Sanrego, 2018. “Mesuring the performance of Islamic banking in Indonesia: An application of Maslahah efficiency quadrant (MEQ)”. Journal of Monetary Economics and Finance, Vol 3 Special Issue, pp.103-130.
Rusydiana, Aam S., and Irman Firmansyah, 2017. “Efficiency versus Maqasid sharia index: An application on Indonesia Islamic bank”. Shirkah Journal of Economics and Business, Vol 2 No 2, 2017.
Rusydiana, Aam S, and Taufik Nugroho, 2017. “Measuring efficiency of life insurance institution in Indonesia: Data envelopment analysis approach”. Global Review of Islamic Economics and Business, Vol. 5 No. 1, pp.12-24.
Rusydiana, Aam S, and Salman Al Parisi, 2016. “The efficiency of zakah institution using data envelopment analysis”. Al-Iqtishad: Jurnal Ilmu Ekonomi Syariah, Vol. 8, No. 2, pp.213-226.
Rusydiana, Aam S. 2019. “Efisiensi sosial dan finansial bank syariah di Indonesia: Pendekatan nonparametrik”, Riset Akuntansi dan Keuangan Indonesia, Vol.4, No.1, pp.13-25.
Rusydiana, Aam S. 2018. “Indeks malmquist untuk pengukuran efisiensi dan produktivitas bank syariah di Indonesia”, Jurnal Ekonomi dan Pembangunan LIPI, Vol.26, No.1, pp.47-58.
Rusydiana, Aam S. 2018b. “Perubahan teknologi dan efisiensi pada organisasi pengelola zakat di Indonesia”, Liquidity: Jurnal Riset Akuntansi dan Manajemen, Vol.7, No.2, pp.124-136.
Rusydiana, A.S. dan Tim SMART Consulting. 2013. Mengukur Tingkat Efisiensi dengan Data Envelopment Analysis. Bogor: SMART Publishing.
Saad, N.M., Majid, M.S.A., Yusof, R.M., Duasa, J., and Rahman, A.R.A. 2006. “Measuring efficiency of insurance and takaful companies in Malaysia using data envelopment analysis (DEA)”, Review of Islamic Economics, Vol.10, No.2, pp.5-26.
Shah, S.A.A., and Masood, O. 2017. “Input efficiency of financial services sector: A non-parametric analysis of banking and insurance sectors of Pakistan”, European Journal of Islamic Finance, No. 6, pp.1-11.
Shahreki, Javad, Nazar Dahmardeh and Mohammad Ali Ghasemi. (2012). “Efficiency Evaluation Bank Sepah Branches in Sistan and Baluchestan Province Using Data Envelopment Analysis”. Interdisciplinary Journal of Contemporary Research in Business Vol. 4 No. 2, June 2012.
Tsolas, Ioannis E. and Dimitris I. Giokas. (2012). “Bank branch efficiency evaluation by means of least absolute deviations and DEA”. Managerial Finance Vol 38 No. 8, 2012.
