Aplikasi Skor-Z Altman dalam Menganggar Kesolvenan Pengendali Takaful di Malaysia
Altman Z-Score Application in Estimating Takaful Operators Solvency in Malaysia

Fakulti Ekonomi dan Pengurusan
Universiti Kebangsaan Malaysia
43600 UKM Bangi, Selangor, MALAYSIA.

huzaidah@gmail.com

Fakulti Ekonomi dan Pengurusan
Universiti Kebangsaan Malaysia
43600 UKM Bangi, Selangor, MALAYSIA.

ubayah@ukm.edu.my

Abstract

This study aims to calculate the level of solvency of takaful operators in Malaysia using the Altman Z-Score. Several solvency estimators, including Margin of Solvency [MOS], Risk-Based Capital [RBC], Claims Paying Ability [CPA] and CAMEL rating, have been developed and applied in the industry. The problems of asymmetric information which are inherent in the insurance (takaful) have at the same time caused the information resulted from these measurements to be more closed and secretive. As a result, consumers and policyholders do not have the information about the solvency of insurers and takaful operators in the market which may help them make the right choice for protection. This study will identify the level of solvency of takaful operators in Malaysia within a period of three years starting from the year 2012 to 2014. In addition, takaful operators will also be ranked based on solvency’s scores obtained. The solvency score in this study is based on the four ratios considered under The Altman Z-Score (non-manufacturing). The results showed that on average, takaful operators were at the level of ‘alert’ for the year 2012 and 2013. For year 2014, result showed that takaful operators were at a ‘bad’ level. Further, the rank was based on the scores obtained. For year 2012, Takaful AmFamily Ltd. was ranked at the top while Syarikat Takaful Malaysia Bhd was ranked at the bottom. Meanwhile, for year 2013, Hong Leong MSIG Takaful Bhd was at the highest rank while the lowest rank was Syarikat Takaful Malaysia Bhd. HSBC Amanah Takaful Sdn Bhd was ranked as the first in 2014 and Takaful Ikhlas Sdn Bhd. was ranked as the last. Overall, the foreign takaful operator performed better than the local takaful operator. The result obtained from this study was expected to provide information to respected parties such as public and takaful operators with regards to the possibility of facing the solvency problem and rank of each takaful operator over the other. For public, the solvencies score can be made as a reference in term of selecting a takaful operator before any decision is being made to purchase the takaful plan. Meanwhile, in the position of takaful industry, takaful operator who has a good solvency’s scoring and a good rank can be referred to as a company with best practices over the other.

Keywords

Altman Z-Score; insurance; Solvency; takaful
https://doi.org/10.17576/pengurusan-2017-50-05

Citation

Husin, N. H., & Yakob, R. (2017). Aplikasi Skor-Z Altman dalam Menganggar Kesolvenan Pengendali Takaful di Malaysia. Jurnal Pengurusan, 50, 45–54. https://doi.org/10.17576/pengurusan-2017-50-05

@article{husin2017aplikasi,
  title={Aplikasi Skor-Z Altman dalam Menganggar Kesolvenan Pengendali Takaful di Malaysia},
  author={Husin, Noor Huzaidah and Yakob, Rubayah},
  journal={Jurnal Pengurusan},
 

volume={50},
  number={},
  pages={45—54},
  year={2017},
  doi={https://doi.org/10.17576/pengurusan-2017-50-05},
  publisher={Penerbit UKM},
}

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50 (2017) 45 – 54

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