The Islamic insurance industry in Indonesia is expected to expand next year at a double-digit growth rate. This will be due to the increase in the number of new players and a requirement to acquire umrah and hajj travel insurance.
Chairman of the Indonesian Shariah Insurance Association (AASI) Ahmad Sya'roni said that premium growth for takaful is estimated to be 10-11% in 2019, according to a report by Kontan. Based on association data, this year's premium volume is expected to reach IDR14.1 trn ($983m).
The share of Islamic insurance in the overall insurance market stands at around 5% this year and is set to increase next year.
Mr Sya'roni expects that there will be five new insurance companies that would be ready to offer takaful next year. This year to date, the market saw seven additional shariah insurance players. Currently, there are 63 Islamic insurance companies, consisting of 30 family takaful operators, 30 general takaful operators and three shariah reinsurance firms.