The Financial Services Authority (OJK) has disclosed that two insurance companies have completed the spin-off of their takaful windows or Shariah Business Unit (UUS) as of 31 October 2024, more than two years ahead of the deadline to do so.
Mr Ogi Prastomiyono, the chief executive of the Insurance, Guarantee, and Pension Fund Supervision division of OJK, speaking at a media briefing, revealed that of the two takaful windows, one is a life insurance UUS which chose to establish a new takaful company to take over the Islamic insurance operations. The company has also obtained a family takaful permit.
The other is a general insurance UUS that has transferred its portfolio to an existing general takaful company. Currently, the UUS is in the process of returning its Shariah business license 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 31 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 Islamic insurance operations to other companies.
There are 15 wholly Islamic insurers currently operating in Indonesia.