REPUBLIKA.CO.ID, JAKARTA -- Indonesia, as the country with the largest Muslim population in the world, has tremendous potential for the development of the sharia finance industry, especially in the insurance sector. Ogi Prastomiyono, Chief Executive Officer of OJK Insurance, Underwriting and Pension Fund, stated that the contribution of sharia insurance premiums as of August 2024 reached Rp 17.63 trillion.
That value grew 2.90 percent over the same period last year. Meanwhile, the total assets of sharia insurance as of August 2024 have reached Rp 45.75 trillion, which is about 5.01 percent of the total commercial insurance assets.
In an occasion in Jakarta, Sharia Supervisory Board Member Yetti Muthmainnah, revealed that integrity and transparency are key to building people's trust in the sharia insurance industry.
“Strict supervision and periodic evaluation of insurance products are indispensable in order not to deviate from the principles of sharia, especially in terms of agreements and helpful practices that are the basis of sharia insurance,” he said during a press conference in Jakarta on Wednesday (9/10/2024).
Yetti also stressed the importance of educating the public on the benefits and advantages of sharia insurance, which focuses not only on financial protection, but also on social aspects that support solidarity and justice. With increasing public awareness of sharia financial products, he is optimistic that sharia insurance will grow rapidly in Indonesia.
He stressed the need for collaboration between regulators, insurers, and the public to create a healthy and sustainable ecosystem.
“The support of all parties is essential to strengthen the foundation of sharia insurance in Indonesia. We are committed to exercising good supervision so that the products offered really benefit society,” he said.
Seeing this opportunity, after a decade of acting as a digital help ecosystem, Kitabisa has now officially entered the insurance industry by launching PT Asuransi Jiwa Syariah Kitabisa. The company's mission is to restore the essence of insurance as a practice of mutual care among fellow members.
Kitabisa Insurance CEO Bryan Silfanus stated that insurance should be a container for individuals to help each other in times of disaster. “Kitabisa Insurance brings a new approach by emphasizing the spirit of helping, not just focusing on financial risk,” he said.
It ensures that member funds are managed in a trusted manner and leverages digital technology to facilitate access and transparency. With a pure life insurance product called SalingJaga Keluarga, members can enjoy protection of up to Rp 2 billion as well as additional services such as corpse management and financial planning.
In the nine months since its launch, more than 20,000 members have joined, reflecting the positive response to the helping concept it carries. Kitabisa Insurance's assets also grew 35 percent this year, indicating high optimism for continued growth in the sharia insurance industry.
Kitabisa Insurance has its roots in the SalingJaga program launched in 2019, which promotes donation between members. In 2023, Kitabisa acquired PT Asuransi Jiwa Syariah Amanah Githa, now known as Kitabisa Insurance. The company has obtained permission from the Financial Services Authority (FSA) to operate legally.
Bryan added that the support of Kitabisa's ecosystem, which has been experienced in bridging the spirit of helping, is the main strength of Kitabisa Insurance. “We are committed to providing more help-based protection options and ensuring transparent management of member funds,” he explained.
With the utilization of insurance services in Indonesia still low, about 1.4 percent, Asuransi Kitabisa is here to answer the challenge. OJK targets insurance density in Indonesia to reach Rp 2.4 million by 2027, making the growth potential for this new company even greater.
Kitabisa Insurance is determined to contribute to increasing public awareness and participation towards sharia insurance, with the hope of making insurance an integral part of everyday life.
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