VP Ma’ruf Amin Mentions Four Key Factors to Optimize Sharia Insurance Industry

VP Ma’ruf Amin (BPMI of Vice President’s Secretariat)

In a bid to optimize Indonesia’s Islamic economic and financial performance, Islamic insurance companies must meet four key factors, Vice President Ma’ruf Amin has said.

According to him, Indonesia is currently ranked fourth in the world and has recorded an increase of total asset by 17 percent in 2021.

However, he acknowledged that the growth of the sharia insurance industry sector is relatively low, adding that based on data from the Financial Service Authority (OJK), the market share of this industry is just 5.3 percent at the end of 2021.

To that end, Ma’ruf unveiled four factors to boost this industry.

“First, human resources who are experts in the field (of Islamic economics and finance) will advance this industry, among others through the creation of innovative products and expansion of new market share,” he said during the virtual launch of insurance company PT Prudential Sharia Life Assurance (Prudential Syariah), Tuesday (04/05).

He went on to explain that consumers show interest in sharia financial service products regardless of their religion and belief so it is important to maintain sharia values in this business.

“Second, we must continue to maintain sharia values in running the business to maintain trust as well as to increase public confidence on the benefits of sharia financial service products compared to the conventional one,” he said.

Third, he added, sharia insurance companies are expected to carefully choose investments that are productive.

“Utilizing productive investment instruments requires foresight to see the potential of other sharia industries,” he said.

Fourth, the Vice President also underscored the importance of mastering digital technology to answer the needs of consumers.

“Do utilize digital technology, which has become a necessity, so that financial and insurance sector services can be faster, easier and cheaper in the future. Insurance customers, both individuals and businesses, will increasingly expect personalized and adjustable services based on their needs,” he explained.

On that occasion, Ma’ruf also expressed hope that Prudential Syariah can answer the needs of the public in fulfilling the protection needs and at the same time becomes the Government’s partner in realizing Indonesia as the center of the world’s Islamic economy.

“I hope Prudential Syariah can be part of the solution to the need for risk protection and provide added values to the public, and drive the pace of a new era of the Islamic insurance industry in Indonesia,” he remarked. (Office of Vice President/UN) (EST/EP)