It is anticipated that the transition of takaful windows into Shariah insurance companies will contribute significantly, over the course of the medium term, to the expansion of the Islamic insurance sector.
According to Mr. Erwin Noekman, the executive director of the Indonesian Sharia Insurance Association (AASI), several companies will have taken action on their takaful window operations by the year 2023. These companies will either have established a new Islamic insurance company or acquired another Islamic insurance company.
"The spin-off action will not be able to stimulate the expansion of the Shariah insurance industry in the short term, which is to say within the next twelve months or less. However, over the course of the next three to five years, the outcomes will most certainly vary "Bisnis was informed by Mr. Erwin. The year 2024 marks the deadline for owners and operators of takaful windows to separate their businesses and become independent Shariah insurers.
The number of insurance companies, both life and non-life, as well as reinsurers, that run takaful windows currently stands at 45, according to the records kept by the government.
