Indonesia: Takaful market expected to continue growth
Source: Middle East Insurance Review | Nov 2021
Indonesia’s recovering domestic economy has boosted the performance of the takaful industry in 1H 2021, with the growth trend projected to continue until the end of the year, according to the Indonesian Sharia Insurance Association (AASI).
Gross contributions in the takaful sector rose 51.89% y-o-y to IDR11.55tn ($811m) in 1H 2021, reported Kontan business publication citing data from the AASI. The contributions accounted for 8.7% of total market GWP in 1H 2021 compared to 6.5% in 1H 2020. Total assets in the takaful market increased by 5.39% to IDR34.44tn from the previous year.
The association is optimistic that growth will continue as the number of COVID-19 cases has declined. In addition, the easing of movement restrictions in several regions will revitalise the economy. Purchasing power has improved, with more buying takaful products.
AASI Shariah Life Insurance Research and Innovation Division head Ronny Ahmad Iskandar said takaful business would grow in both general and family takaful lines.
He said, “We believe the industry’s performance can still be maintained or be almost the same as in the second quarter of 2021.” M