Allianz Sharia Insurance Assesses Intensifying Competition Following Spin-Off
PT Asuransi Allianz Life Syariah Indonesia (Allianz Life Syariah) forecasts that the competitive landscape in the sharia insurance industry will become increasingly competitive following the completion of the mandatory separation of Sharia Business Units (UUS), or spin-off, by the end of 2026. This obligation is established under Article 9 of POJK 11/2023.
Director of Allianz Life Syariah, Jazilah Firdaus, emphasised the importance of product innovation to meet intensifying competition. “The competitive landscape in sharia business is certainly tough, even at present. Product innovation is indeed one of the key factors because the essence of insurance business is the product,” she stated during an insurance industry webinar on Tuesday (24 February 2026).
Allianz Life Syariah is developing product innovation based on Maqasid Syariah principles, which represent the objectives of Islamic law to realise the welfare of the Muslim community. This approach produces sharia products with characteristics distinct from conventional products.
“Maqasid Syariah is our reference in designing protection products. We also wish to move away from products known as copies of conventional products,” she explained.
The company conducts focus group discussions with various customer segments in its innovation process. The purpose is to understand the actual needs of the community.
One product resulting from this approach is AlliSya Cerdas, which is designed to assist in education cost planning amid rising school fee trends.
Jazilah added that Allianz is attempting to overhaul its entire product line based on Maqasid Syariah principles and community needs to remain relevant in competition.
Allianz Life Syariah itself officially completed its spin-off and obtained a business licence from OJK in November 2023.
Progress of Spin-Off in the Insurance Industry
Deputy Commissioner for Insurance Supervision, Guarantees, and Pension Funds at OJK, Iwan Pasila, stated that there are currently 18 full-fledged sharia insurance companies.
OJK records that 28 spin-off applications have been received. Of these, 3 companies have completed spin-offs, 5 companies are still in process, and 20 companies have not yet submitted spin-off schemes.
Iwan Pasila emphasised that the UUS spin-off deadline will not be extended. “There will be no postponement from the spin-off UUS regulation side. Companies must make the best use of the available time,” he stated.
As the end-2026 deadline draws closer, the sharia insurance industry is projected to enter a phase of consolidation and heightened competition over the next two years.