Market Share of Indonesia’s Takaful Sector Expands to 9% in 2021: Fitch

The Takaful sector in Indonesia continues to see strong growth, recording a 9% share of the country’s overall insurance market in the first 11 months of 2021 (11M21) on the back of an increase in life Shariah products by 41% year-on-year (YoY) as highlighted by Fitch Ratings (Fitch) in its report “Indonesia Takaful Dashboard: 2022”.

Why it Matters?

The Takaful sector is expected to benefit from rising capitalisation in the long run as more insurers in Indonesia choose Takaful over conventional insurance. Other factors which are expected to contribute to its long-term growth potential are government support for the industry, increasing awareness and demand, economic recovery and the easing of Covid-19 movement restrictions. The expectati...