A total of 17 takaful windows or shariah business units (UUS) of insurers in Indonesia are expected to be spun off into Islamic insurance companies this year.
Another five UUSs will transfer their portfolios to existing shariah insurance companies, the Antara News Agency reported quoting Financial Services Authority (OJK) deputy chairman Mirza Adityaswara.
These 22 shariah insurance windows are among 41 for which Shariah Unit Separation Work Plans (RKPUS) were submitted to the OJK by December 2023. The deadline for divesting takaful windows by insurers is 31 December 2026.
The OJK disclosed late last year that two insurance companies, among the 41, have completed the spin-off of their takaful windows as of 31 October 2024. This means that action is needed by the remaining 18 UUSs.
Of the 41 insurers, 29 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.
As of the end of October 2024, 15 wholly Islamic insurers operated in Indonesia.