Indonesia: Insurers must spin off takaful windows before Dec 2026 deadline

Source: Middle East Insurance Review | Dec 2023

At the officiating of the launch of Allianz Life Syariah Indonesia last month, Indonesia vice president Ma’ruf Amin has urged insurance companies to spin off their shariah business units before the deadline of December 2026. He hoped that insurers in Indonesia would take the initiative and that they do not need to wait until the specified deadline.

In July 2023, the Financial Services Authority (OJK) extended the deadline for spinning off takaful windows from October 2024 to December 2026.

Currently, Prudential and Allianz Indonesia have already split their Islamic and conventional insurance operations. Two other insurance companies said that they are not continuing their shariah business. OJK insurance, guarantee and pension fund supervisory unit CEO Ogi Prastomiyono said the decision not to continue the shariah business was because the two insurers had assessed that the business volume of their shariah units was too small. M

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