This paper highlights the contemporary issues related to credit risk in Islamic banking and Takaful (insurance). These two areas of the Islamic finance are facing several challenges that need to be highlighted. Both are witnessing a global and regional increase in demand and have bright future. In order to secure proper growth, it is essential to adopt proper strategies regarding credit risk ma...

Most of the world’s poor face large risks, which affect their investment decisions and contribute to the perpetuation of poverty (Karlan et al. forthcoming). In this context, insurance products targeted at the poor are seen as having substantial promise, as opportunities both to make pro!t and to improve ef!ciency and social welfare. The marketing of insurance products to the poor has faced two...

Data resource basics: The National Health Information Database (NHID) is a public database on health care utilization, health screening, socio-demographic variables, and mortality for the whole population of South Korea, formed by the National Health Insurance Service. The population included in the data is over 50 million, and the participation rate in the health screening programs was 74.8% i...

Most households in low-income countries deal with economic hardships through informal insurance arrangements between individuals and communities rather than through publicly managed programs or market-provided insurance schemes. Households may, for example, draw on savings, sell physical assets, rely on reciprocal gift exchanges, or diversify into alternative income-generating activities. These...

Deposit insurance was introduced in the United States during the Great Depression primarily to promote financial stability. Stability is enhanced because deposit insurance reduces the likelihood of a bank run. During its first four decades, deposit insurance appeared to work well as few banks failed. But in the 1980s, a wave of financial troubles in the banking and thrift industry exposed an un...

This section describes how I convert the cost sharing formula in Table 1 into actual monthly outof-pocket health expenditures in Table 2. Ideally, I would like to have access to information on actual out-of-pocket expenditures at the individual level (like Medical Expenditure Panel Survey in the US). In the absence of such data, I attempt to derive the same. Fortunately, I know the exact formul...

The application of utility theory to insurance is incomplete without the inclusion of the structure of risk sharing; to limit the use of utility to accept or reject decisions misses its power to explain the real world of excess insurance and reinsurance. The fine subdivision of risk which is routinely achieved bv insurance institutions can be explained on this basis. Practica1 methods of evalua...

Losses from natural disasters have increased in recent years due to growth of population in hazard-prone areas and inadequate enforcement of building codes. This article first examines why homeowners have not voluntarily adopted cost-effective protective measures and have limited interest in purchasing insurance. It then proposes a disaster-management program which utilizes insurance coupled wi...