Indonesia: Two insurers complete spinoff of takaful windows
Source: Middle East Insurance Review | Dec 2024
The Financial Services Authority (OJK) has disclosed that two insurance companies have completed the spin-off of their takaful windows or shariah business units (UUS) in October 2024, more than two years ahead of deadline.
OJK chief executive of the Insurance, Guarantee and Pension Fund Supervision division Ogi Prastomiyono, speaking at a media briefing, said that of the two takaful windows, one was a life insurance UUS that set up a new takaful company which also obtained a family takaful permit.
The other window was a general insurance UUS that transferred its portfolio to an existing general takaful company. This UUS is in the process of returning its shariah business licence to OJK.
The two companies are among 41 insurers that have submitted their shariah unit separation work plan to the OJK. The deadline for spinning off takaful windows is December 2026.
Of the 41 insurers, there are 29 that have announced that they would establish new takaful and retakaful companies while the other 12 have opted to transfer their takaful operations to other companies.
There are 15 takaful insurers currently operating in Indonesia. M