OJK Strengthens Sharia Insurance Ecosystem, Industry Prepares New Structure
The potential of the sharia insurance market in Indonesia continues to grow alongside the large Muslim population and the increasing public need for products compliant with Islamic principles. This development is encouraging insurance companies to strengthen their sharia business while adjusting to the direction of regulatory policy.
One of the latest steps comes from PT FWD Insurance Indonesia. The company announced that PT FWD Insurance Indonesia Syariah (FWD Syariah) has officially obtained a sharia life insurance business licence from the Financial Services Authority (OJK).
This licence is a crucial part of the process of spinning off FWD Insurance’s sharia business unit. The move serves as the company’s effort to comply with regulatory requirements and strengthen the national sharia insurance ecosystem. Following the licence approval, FWD Insurance will apply to the OJK for approval to transfer the portfolio of participants from its sharia business unit to FWD Syariah. Once approved, the sharia life insurance portfolio will be transferred and subsequently managed by FWD Syariah.
FWD Insurance President Director Jeffrey Woo stated that obtaining the business licence is a significant milestone in the company’s sharia unit separation process. “This step not only fulfils regulatory requirements but also reflects our commitment to continuing to provide relevant services and protection for the Indonesian people through sharia life insurance,” he said. He added that the separation and portfolio transfer process will not alter policy benefits, participant rights and obligations, services, or the claims submission process. The process is carried out in accordance with OJK Circular Letter No. 10/SEOJK.05/2024 concerning the mechanism and procedures for the separation of sharia units of insurance and reinsurance companies. Jeffrey stressed that the company is committed to ensuring all stages proceed according to the regulator’s provisions so that participants continue to receive the services and protection benefits to which they are entitled.