The sharia insurance industry is considered to have growth potential

The Muslim population in Indonesia will reach 87.2 percent of the total population in 2021. This figure indicates that Indonesia has enormous potential to develop the Islamic economic sector,

Jakarta (Armfalcon.com) – The sharia life insurance industry is considered to have growth potential in the country considering that Indonesia’s Muslim population reaches 87 percent of the total population.

President Commissioner of Prudential Syariah Bambang Brodjonegoro revealed that the performance of sharia insurance was recorded to have grown by 3.5 percent on an annual basis in December 2022.

“The Muslim population in Indonesia will reach 87.2 percent of the total population in 2021. This figure indicates that Indonesia has enormous potential to develop the Sharia economic sector,” he said in a written statement in Jakarta, Thursday.

Also read: Muhammadiyah launches a sharia digital insurance platform

He said, Prudential Syariah had taken strategic steps to capture this potential and succeeded in becoming the first joint venture company to carry out a spin-off in 2022.

Since the spin-off, he continued, the company has recorded total assets of IDR 6.7 trillion and recorded a risk-based capital (RBC) of the Tabarru Fund of 249 percent.

“This indicates that the company has a healthy financial condition with an RBC number that exceeds the minimum target set by the regulator,” said the former Minister of Finance at the 1st Anniversary of Prudential Syariah.

According to him, Prudential Syariah occupies the first position as a Sharia life insurance company with a market share of tabarru funds of 39 percent, and market share in terms of assets of 21 percent.

In addition, it also has more than 160 thousand sharia-licensed business partners, the largest in the industry to assist participants in planning their needs for sharia-based protection solutions.

Also read: The need for Islamic life insurance literacy for the younger generation

According to Prudential Sharia President Director Omar S. Anwar, one of the challenges in developing Sharia life insurance is the low Islamic financial literacy and inclusion index, which only reaches 9.14 percent in 2022 for literacy and 12.12 percent for inclusion.

Meanwhile, the general financial literacy and inclusion index of the Indonesian people reached 49.68 percent and 85.10 percent in the same year.

“This challenge prompted us to take a strategic step by launching the Sharia Knowledge Center (SKC) which focuses on the pillars of information, literacy, innovation and collaboration,” he said.

Through a collaborative strategy, he continued, he has collaborated with the Indonesian Sharia Insurance Association (AASI) in initiating the Sharia Life Insurance Blueprint and establishing a strategic partnership with the Nahdlatul Ulama Board (PBNU).

Also read: The life insurance industry’s paid claims will reach IDR 174.28 trillion in 2022

On that occasion, Omar stated that during his one-year journey after officially becoming a separate entity on April 5, 2022, his party focused on helping Indonesian families try to deal with various risks with Sharia protection solutions.

As a form of trust to its participants, he continued, the company has paid claims of IDR 1.7 trillion1 for 2022 which includes claims for health benefits and life insurance.

source: www.antaranews.com

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