Contributions in Indonesia’s Islamic insurance market grew by 8.69% to IDR16.7tn ($1.14bn) last year, according to the Indonesian Shariah Insurance Association (AASI).
AASI chairperson Ahmad Syaroni said that general takaful contributions dipped by 1.08% from IDR1.84tn to IDR1.82tn. Family takaful contributions rose by 9.67% to IDR13.92tn last year, reported the local media citing AASI data.
The impact of the world economic slowdown is having an impact on us, especially in the motor class. As the macroeconomic industry slows, the demand for motorcycles also has decreased,” Mr Syaroni said.
Meanwhile, total claims in the takaful sector rose by 39.87% from IDR7.58tn to IDR10.6tn in 2019. General takaful claims fell to IDR726bn. However, the family takaful segment saw premiums jump by 47.98% to IDR9.17tn.
Total assets of Shariah-compliant insurance rose by 8.44% to IDR45.45tn at the end of 2019 compared to end-December 2018.
Source: Middle East Insurance Review