University of Khartoum

Microfinance Insurance in Sudan Application and Practice

Microfinance Insurance in Sudan Application and Practice

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Title: Microfinance Insurance in Sudan Application and Practice
Author: Hassan, Salma Faisal Ali
Abstract: This research aims to evaluate the performance of microfinance insurance market in Sudan with special concentration on discrepancies in application mechanisms of Microfinance Original Group Takaful policy and Microfinance Comprehensive Insurance Policy that bring about improper practices in the market. It also aims to explain the difference between Microfinance Group Takaful Policy and Microfinance Comprehensive Insurance Policy in theory and practice and to identify the different mechanisms of practice among Sudanese insurance companies in accordance with its jurisprudential approach to the original microfinance insurance policy approved by the Shariah Supervisory board. The research used the descriptive explanatory method and the comparative case study methodology. Both qualitative and quantitative approaches were used in analysis. Data employed in the study was collected during 2008 - 2016 and analysis was carried using both interrupted time series and regression. By statistically examining microfinance insurance market performance in terms of premiums, it was found to be normal during 2008 – 2011, the period of implementing Microfinance Group Takaful Policy. The introduction of the Microfinance Comprehensive Insurance Policy (Comprehensive Insurance Policy IP) in 2012, packed by Sudan Central Bank caused real market interruption due to errors in practices and differences in implementation mechanisms that resulted in insurance practices not in compliance with Shariah. Results showed that there is no theoretical difference between Microfinance Group Takaful Policy and the Microfinance Comprehensive Insurance Policy, but the differences in the mechanisms of implementation led to defects in market performance. Companies that have applied microfinance (CIP) with faults in practices outperform companies that stick to Microfinance Group Takaful policy. Statistical analysis showed that Shiekan Insurance and Reinsurance Company is a typical example of an insurance company that experienced significant statistical interruption. The study recommends that the insurance companies should collectively collaborate with concerned insurance bodies undertake more training programs in Microfinance insurance to avoid improper practices and develop technical knowhow. The General Corporation for Supervision and Control of Insurance in collaboration with the Higher Shariah Supervisory Body should work to end this problem of implementation.
URI: http://khartoumspace.uofk.edu/123456789/27045


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