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Sharia Insurance Business in Indonesia

sharia insurance

Growth of Sharia Insurance business in Indonesia is predicted to have bright prospect in 2011. It is believed that the premium of sharia insurance will reach Rp. 6 trillion or increase by 50% if compared with that in 2010 of Rp. 3.9 trillion and this indication shows that almost all indicators of sharia insurance growth experience positive trend.

Based on the observation of CDMI the number of sharia insurance players has kept on rising. Up to end 2010 there were 144 insurance leading insurance companies having already opened sharia units.

The sharia insurance in Indonesia has grown since 1994 in line with the establishment of PT Syarikat Takaful Indonesia motorized by Indonesian Moslem Intellectual Council (ICMI) through Abdi Bangsa Foundation, Bank Muamalat Indonesia, PT Asuransi Jiwa Tugu Mandiri, Departement of Finance of Republic of Indonesia and several moslem businessmen in Indonesia.

According to study of CDMI there were two main indicators becoming the illustration of sharia financial industry growth in Indonesia. The first indicator is the development of sharia bank and the second one is the growth of sharia insurances. Both share based industries above have rapidly been developing with growth rate of 40% – 60% per annum.

Viewing the development of sharia insurance in Indonesia, there are many conventional adopting sharia principles by opening division or branch of sharia brands including PT AJB Bumiputera 1912, PT MAA General Assurance, PT MAA Life Insurance, PT Asuransi Jiwa BRIngin Life as well as leading companies groups including AXA Mandiri (Mandiri Group), Sinar Mas Group, Para Group, BCA Group, Panin Group, and others.

A number of large sized insurance companies in the world are also attracted to enter this business including PT Prudential Life Assurance, PT Asuransi Manulife Indonesia, PT Asuransi Allianz Life Indonesia, PT Sun Life Financial Indonesia, PT AJ Sequis Life, PT AIG Life and others they appraise that Indonesia with the largest Moslem population is a great potential to develop the business.

Foreign insurance companies which are very expansive to release sharia products including PT Prudential Life Assurance (PruLink Syariah Asurance Account and PruLink Syariah Investor Account), PT Asuransi Manulife Indonesia (Berkah SaveLink), PT Asuransi Allianz Life Indonesia (AlliSya Protection, AlliSya Benefit Account, AlliSya Protection Plus), PT Sun Life Financial Indonesia (Brilliance Hasanah Protection Plus and Brilliance Hasanah Sejahtera), PT AJ Sequis Life (Ta’min, Takaful) and others.

View the anthusiasm of sharia insurance companies and the growing development of sharia insurance business in Indonesia, CDMI an independent consultan company in Indonesia, is attracted to study deeply sharia insurance business and finally published an analysis study entitled “Study on Market Potential and Major Player of Sharia Insurance Business in Indonesia, 2011 – 2015“.

This study is very useful for insurance companies in Indonesia and investor who to enter this business, sharia, and conventional banks and other financial business.


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