The Impact of Practicing Takaful Insurance on Sustainable Development in Yemeni Insurance Companies

This study aimed to evaluate the impact of Takaful insurance practices, with its developmental, legislative, and governance dimensions, on achieving sustainable development in its economic, social, environmental, and cultural dimensions in Yemeni insurance companies.

The study adopted a quantitative, descriptive, and analytical approach. A robust questionnaire consisting of (38) items was administered to a purposive sample comprising all employees at the main headquarters of (9) Yemeni Takaful insurance companies in the capital, Sana'a. The sample size was (220) individuals. Data were analyzed using descriptive and analytical statistical methods (simple and multiple regression analysis).

The results showed a statistically significant positive impact of Takaful insurance on sustainable development, explaining 40.8% of the variance in the dependent variable. The governance (β=0.539) and development (β=0.386) dimensions had the greatest positive impact. In contrast, the legislative dimension showed a statistically significant negative effect (β = -0.166), attributed to the absence of a specific law regulating Takaful insurance activities and appropriate to its nature. The results also revealed disparities in the level of practice, with both dimensions (legislative and governance) recording a relatively high level, while the development dimension was the weakest.

Based on the study's findings, it recommended a set of outcomes, the most important of which are: issuing a law specific to Takaful insurance and strengthening the governance and developmental role of insurance companies.