Indonesian Shariah Insurance Association Identifies Potential Challenges for the Islamic Insurance Industry

Executive Director of the Indonesian Shariah Insurance Association (AASI), Erwin Noekman, noted that Shariah insurance in Indonesia will face a number of challenges which both the industry and regulators need to prepare for.

First, Noekman discussed the openness in the main regional market by way of the Association of South East Asian (ASEAN) Framework Agreement on Services (AFAS). AFAS was formed as a cooperation to achieve economic integrity in the service sector within the ASEAN region. According to local media reports, AFAS will open on the 1st of January 2025.

Erwin mentions that the first objective to be opened in the agreement is related to Shariah general insurance, whereby currently, all regional players are allowed to market Islamic general insurance Product...