Sharia insurance is important for developing the Sharia finance industry: VP

This means that the opportunity for the Shariah insurance industry is still wide open.

Jakarta (ANTARA) – Vice President Ma’ruf Amin has highlighted the importance of Sharia insurance in developing the Sharia financial industry in support of sustainable national development.

“The presence (of Shariah insurance) should support the creation of sustainable national development, eradicate poverty and help accelerate disaster recovery in Indonesia,” Amin noted at the launch of PT Prudential Sharia Life Assurance. (Prudential Syariah) via video conference call in Jakarta on Tuesday.

Not only the public, but also financial institutions, such as Shariah banks, need Shariah insurance services, he noted.

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By applying a concept of risk sharing, Sharia insurance is a risk control alternative for commercial agents and entrepreneurs, he noted.

“Unfortunately, the central role of Shariah insurance has not been reflected in the balanced growth of Shariah insurance. The market share of the Shariah insurance industry is relatively low,” he said. note.

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According to data from the Financial Services Authority (OJK), Shariah insurance holds a 5.3% share of the insurance market in the country in 2021. Meanwhile, the Shariah insurance sector s has been developed since the founding of the first Shariah insurance company three decades ago. .

“This means that the opportunity for the Shariah insurance industry is still wide open,” he said.

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