WHAT MAKES CONVENTIONAL INSURANCE ESTABLISH SHARIA UNITS?
AZIS, FADHILAH RAQIYAH
ADNAN, MUHAMMAD AKHYAR
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This is a descriptive exploratory research which aims to identify factors which caused conventional insurance companies to establish sharia units. Seven conventional insurance companies were investigated and their sharia branch managers were the taken as source of information. Based on the fieldwork interviews, some factors are identified as the reasons for establishing sharia branches. These include the existence of demand and market opportunities; linkages between sharia insurance and sharia banks; good prospects of sharia industry; and the increase of public awareness of sharia economics. The financial impact after the establishment of sharia unit is that the companies earned higher profit, and the non-financial impact is the increase of customers’ understanding on the insurance companies in general.