The influence of underwriting risks, internal factors and economic factors on the performance operators

Since its establishment in 1979, Takaful industry hold a promising growth especially in Muslim dominated regions. One of them is Malaysia, where Islamic Finance Development Report in 2023 mentioned that Malaysia poses the main asset percentage of takaful. However, Bank Negara Malaysia reported that Year-to-Year growth of takaful performance in this country is still unstable during 2010-2022. It assumed that several factors could be the reasons behind this unstable trend. Therefore, this study aims to analyse factors affecting takaful performance in Malaysia during 2011-2023. This study employs factors such underwriting risks (claim paid and retakaful asset), internal factors (firm size and leverage), and economic factors (GDP and inflation) that may have significant impact on takaful performance. Using secondary data collectedthrough financial statement of takaful operators, this study caries out the result analysis using Eviews 12. In addition, this study uses multiple regression analysis with panel dataset to test the effect between independent variables and dependent variable. Where the finding indicates that claim paid, retakaful asset, and firm size significantly affect the performance of takaful operators. Meanwhile, leverage, GDP, and inflation have no significant effect on the performance of takaful operators