Indonesia Sharia insurance sector eyes growth via spin-offs and digitalization

The Indonesian Sharia insurance industry is positioned for growth following the completion of mandatory spin-offs of Sharia business units. According to the Indonesian Sharia Insurance Association (AASI), Sharia insurance assets currently represent approximately 5.32% of the commercial insurance industry as of June 2026.

AASI Chairman Fauzi Arfan noted that the market remains relatively small, offering significant expansion opportunities. To drive this growth, the association aims to increase the number of Sharia insurance agents from approximately 113,000 to 200,000 within the next three years. This expansion is supported by Indonesia's large Muslim population and growing interest among younger generations.

In the digital sector, PT Asuransi Jiwa Syariah Kitabisa (SalingJaga) has launched full digital services to streamline life insurance claim processes. Director Eriawan Indra stated that the digital transition aims to simplify administrative procedures for beneficiaries and ensure transparent management of 'tabarru' (mutual assistance) funds through their mobile application.