AASI Predicts Indonesia’s Shariah Insurance Industry Assets to Reach 20-25% Market Share by 2030

The Indonesian Shariah Insurance Association (AASI) predicts that the country’s Shariah insurance market share (by assets) can grow to 20-25% by 2030 compared to conventional insurance, if the overall Islamic insurance industry’s assets grow by eight fold, given a doubling of the conventional industry. At present, market share of Indonesia’s Islamic insurance industry amounts to 5% (or IDR 40 trillion). In addition, factors like such as good governance, capital and Shariah insurance spinoffs will prove to be vital.

Why it Matters?

The Financial Services Authority (OJK) reports that most insurance companies within Indonesia have submitted work plans to do a spin off, thus likely contributing to reach the predicted growth rate. However,...