Thursday, June 2, 2011

A Short History of Syariah Insurance in Indonesia

Here is a short history of syariah Insurance, at least in Indonesia.

Currently, Indonesia is known as one of the country with the Takaful operator in the world pretty much. Based on data from the National Islamic Council of Indonesian Ulemas Council (MUI DSN), there are 49 Islamic insurance players in Indonesia that have earned the recommendation of sharia. They consist of 40 Takaful operators, three Islamic reinsurance, and six insurance brokers and reasiuransi sharia.

Development of the Takaful industry in this country begins with the birth of Indonesia's first Islamic insurance in 1994. At that time, PT Syarikat Takaful Indonesia (STI) was established on February 24, 1994 sponsored by the Association of Indonesian Muslim Intellectuals (ICMI) by Abdi Nations Foundation, Bank Muamalat Indonesia, PT Mandiri Monument Life Insurance, Ministry of Finance, Indonesia and some Muslim businessmen.

Furthermore, STI set up two subsidiaries. They are a life insurance company named PT Islamic Takaful Insurance Family (ATK) on August 4, 1994 and the insurance company named PT Islamic Takaful Insurance General (ATU) on June 2, 1995. After opening Takaful Insurance, insurance companies were aware of the considerable potential of the Takaful business in Indonesia.

It is then pushed many companies into a crowd of Takaful business, among which is done by direct insurance companies establish a full and open division or branch of Islamic insurance.

Stretegi business development through the establishment of Islamic insurance companies Takaful Mubarakah performed by moving the syariah life insurance business. While the business development strategy through the opening of a division or branch of sharia do most insurance companies, among others, PT MAA Life Assurance, PT MAA General Assurance, PT Great Eastern Life Indonesia, PT Tri Pakarta Insurance, PT AJB Bumiputera 1912, and Life Insurance PT BRIngin Prosperous Life.

In fact, a number of large insurance players interested in getting the world also joined in the Takaful business in Indonesia. They assess Indonesia as the largest Muslim nation in the world is a potential for significant business development that can not be ignored. Among the companies included in the global insurance business of Takaful Indonesia is PT Allianz Life Indonesia and PT Prudential Life Assurance.

(Source: Republika, March 17, 2008)

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