Sharia insurance is important to develop Sharia finance industry: VP

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Vice President Ma’ruf Amin has highlighted the importance of sharia insurance to develop the sharia financial industry in support of sustainable national development.

“The presence (of sharia insurance) is expected to support the creation of sustainable national development, eradicate poverty, and contribute to accelerating recovery in the event of a disaster in Indonesia,” Amin noted while addressing the launch of PT Prudential Sharia Life Assurance (Prudential Syariah) through video teleconferencing in Jakarta on Tuesday.

Not only the public but also financial institutions, such as sharia banking, require sharia insurance services, he remarked. By applying a risk-sharing concept, sharia insurance is an alternative risk control for business agents and entrepreneurs, he noted.

“Unfortunately, the pivotal role of sharia insurance has not been reflected by the balanced growth of sharia insurance. The share market of the sharia insurance industry is relatively small,” he noted. Based on data from the Financial Service Authority (OJK), sharia insurance holds a 5.3-percent share of the insurance market in the country in 2021.

Meanwhile, the sharia insurance industry has grown since the first sharia insurance firm was set up three decades ago. “This means that the opportunity for the sharia insurance industry is still wide open,” he affirmed.— ANTARA

 

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