Indonesia's shariah insurance industry has recorded a positive performance in the first quarter of this year, as reflected by growth in takaful contributions.
The Financial Services Authority (OJK) noted that for the first quarter of this year, takaful raked in contributions totalling IDR4.09 trillion ($293 million). This represented growth of 34.9% from the corresponding quarter last year, reports Kontan.
According to the chairman of the Association of Indonesian Shariah Insurance (AASI) Ahmad Sya'roni, the increase in contributions was due to more players entering the market, indicating that the potential of Islamic insurance was not optimised previously. In terms of penetration, the market share of shariah insurance is around of 5%.
In 1Q2018, family takaful commanded contributions totaling IDR3.37 trillion while general shariah insurance posted contributions of IDR512 billion. Retakaful contributions totalled IDR204 billion.