Record Details

Camel Rating Approach to Assess the Insurance Operators Financial Strength

Jurnal Ekonomi Malaysia

View Archive Info
 
 
Field Value
 
Title Camel Rating Approach to Assess the Insurance Operators Financial Strength
 
Creator Yakob, Rubayah
Yusop, Zulkornain
Radam, Alias
Ismail, Noriszura
 
Subject —
—
—
 
Description ABSTRACTThis study aims at looking at the financial strength based on the CAMEL rating system for each of the conventional life insurers and takaful operators. The existing financial indicators, such as the margin of solvency (MOS), risk-based capital (RBC) and claim paying ability (CPA) rating,present their own constraints in providing information concerning the financial position of the operators to the policyholders and the public. The data used for the twenty life insurance and takaful companies operating during the period of 2003 to 2007 consists of twenty-three financial ratios. The factors (values) generated by factor analysis applied on twenty-three financial ratios reflect the five components in the CAMELrating system. The results show that the CAMEL rating is a promising approach in providing an overview of the financial strength of the life insurer/takaful operator for the benefit of policyholders and the public.Keywords: CAMEL rating; Life insurer; Takaful operator; Factor analysisABSTRAKKajian ini bertujuan untuk melihat kekuatan kewangan berdasarkan sistem penarafan CAMEL bagi setiap penanggung insurans hayat konvensional dan pengendali takaful. Penunjuk kewangan sedia ada, seperti margin kesolvenan (margin of solvency [MOS]), modal berasaskan risiko (risk-based capital [RBC]) dan keupayaan membayar tuntutan (claim paying ability [CPA]) mempamerkan kekangan mereka yang tersendiri dalam menyediakan maklumat mengenai kedudukan kewangan pengendali kepada pemegang polisi dan orang awam. Data yang digunakan bagi dua puluhbuah syarikat insurans hayat dan takaful yang beroperasi sepanjang tempoh 2003 hingga 2007 terdiri daripada duapuluh tiga nisbah kewangan. Faktor-faktor (nilai) yang dijanakan oleh analisis factor terhadap dua puluh tiga nisbah kewangan mencerminkan lima komponen dalam system penarafan CAMEL. Keputusan menunjukkan bahawa penarafan CAMEL adalah pendekatan yang meyakinkan dalam menyediakan gambaran tentang kekuatan kewangan penanggung insurans hayat/ pengendali takaful bagi manfaat pemegang polisi dan orang awam.Kata kunci: Penarafan CAMEL; penanggung insurans hayat; pengendali takaful; analisa faktor
 
Publisher Universiti Kebangsaan Malaysia
 
Contributor —
 
Date 2012-12-31
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
Peer-reviewed Article
—
 
Identifier http://ejournal.ukm.my/jem/article/view/2706
 
Source Jurnal Ekonomi Malaysia; Vol 46, No 2 (2012): Jurnal Ekonomi Malaysia
0126-1962
 
Language en
 
Coverage —
—
—