Prudential Launches Dedicated Sharia Life Insurance Business In Indonesia – InsuranceNewsNet – Insurance News Net
05 Apr 2022
Prudential Launches Dedicated Sharia Life Insurance Business in Indonesia
Prudential Syariah to meet the growing demand for Sharia solutions and support the growth of the Sharia economy
Prudential is the first global insurer to set up a standalone Sharia life insurance entity in Indonesia
Prudential Syariah adheres to the principles of ‘Sharia for All’, which embrace the concept that Sharia values are universal, inclusive, and relevant to all Indonesians
Its innovative product capabilities, coupled with a strong multi-channel distribution network puts the company in a strong position to grow its Sharia business, and expand customer reach
Jakarta, 5 April 2022 – PT Prudential Life Assurance (Prudential Indonesia) today announced the launch of PT Prudential Sharia Life Assurance (Prudential Syariah). Prudential is the first global insurer to set up a standalone Sharia life insurance entity in Indonesia. The move underscores Prudential’s deep commitment to support the growth of Indonesia’s Sharia economy and the country’s vision to become the global hub for Islamic financial solutions.
Prudential Syariah is dedicated to meeting the Sharia based health and wealth needs of the communities with solutions that are based on the “Sharia for All” principles. This set of principles embraces the concept that Sharia values are universal, inclusive, and relevant to all Indonesians.
K.H. Ma’ruf Amin, Vice President of the Republic of Indonesia, officiated and congratulated the establishment of Prudential Syariah. Also in attendance were the heads of Sharia financial institutions and organisations, namely the Financial Services Authority (OJK), the National Committee for Sharia Economy and Finance (KNEKS), and the Sharia Economic Community (MES).
In his keynote speech, K.H. Ma’ruf Amin, said, “Indonesia’s economic and Sharia performance has continuously shown an increase from year to year. Indonesia is the fourth largest country in the world with total assets under the Sharia industry reaching 17 per cent in 2021. We hope that Prudential Syariah can be part of the solution to meet the need for risk protection and provide added value to the public, while at the same time drive the pace of a new era of the Islamic industry in Indonesia and supporting the Indonesian government’s commitment to become the centre of the world’s Islamic economy.”
While the Covid-19 pandemic has led to an overall contraction of the global Sharia economy, Indonesia continues to top the Islamic Finance Country Index (IFCI) according to the Global Islamic Finance Report 2021.
Riswinandi, Executive Head of Non-Bank Financial Institutions Supervision (IKNB) and Commissioner Board Member of the Financial Services Authority (OJK), said, “The establishment of Sharia life insurance business as a standalone entity will significantly bolster the growth of the Sharia industry and ecosystem. We recognise the efforts of Prudential Indonesia and Prudential Syariah and hope others will follow suit to support the development of the Sharia life insurance industry. There is a huge potential to narrow the protection gap and enhance financial inclusion among the Islamic community in Indonesia, where insurance penetration is less than one per cent.”
Since Prudential Indonesia established its Sharia unit, the business has gone from strength to strength. Last year, Prudential Indonesia further expanded the distribution reach of its Sharia products through its strategic bancassurance partners Standard Chartered Indonesia and UOB Indonesia. It also leveraged its digital partners and platform to make Sharia solutions more accessible to the digitally savvy customers.
Michellina Laksmi Triwardhany, Prudential Indonesia President Director, said Prudential is committed to partner the government in making Indonesia a global Sharia financial services hub.
“We are very grateful for the achievements recorded by our Sharia Business Unit since its inception in 2007. Today, we are a leader with a 29 per cent share of the Sharia market1, offering an innovative and comprehensive suite of 49 products. Prudential Indonesia will continue to support Prudential Syariah, leveraging our experience and leadership in Sharia life insurance. Together, we will build on the foundation laid over the last 14 years to help more Indonesians get the most out of life,” said Michellina.
Omar Sjawaldy Anwar, Prudential Syariah President Director said by adhering to the ‘Sharia for All’ principle, the establishment of Prudential Syariah will strengthen our ability to deliver innovative, comprehensive, and affordable health and financial solutions for our customers.
“Our innovative product capabilities, coupled with a strong multi-channel distribution network puts us in a strong position to grow our Sharia business, and expand our customer reach. We are very optimistic about the prospects of the Sharia industry and are committed to play a leading role to drive the development of Islamic finance in Indonesia,” said Omar.
To improve financial literacy, including sharia insurance literacy, Prudential Syariah also introduced the Sharia Knowledge Centre (SKC). It is an online educational hub that provides up-to-date information on new products and services as well as a discussion and collaboration platform for latest innovation and developments in the Sharia financial services industry. The 2019 National Financial Literacy and Inclusion Survey conducted by OJK showed that the insurance literacy index stood at less than 20 per cent. This means only two in 10 Indonesians have an understanding of insurance.
Leamore about Prudential’s business in Indonesia: https://www.prudentialplc.com/en/investors/presentations/2022
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1 Based on AAJI Q4 2021 Data
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About Prudential Indonesia
PT Prudential Life Assurance (Prudential Indonesia) was established in 1995 and is part of Prudential plc, which provides life and health insurance and asset management, with a focus on Asia and Africa. By combining Prudential’s international experience in the field of life insurance with knowledge of local business procedures, Prudential Indonesia is committed to developing its business in Indonesia.
Since launching its first unit link insurance product in 1999, Prudential Indonesia is the market leader for these products in Indonesia. Prudential Indonesia has established a Sharia Business Unit since 2007 and has been trusted as the leader in the sharia life insurance market in Indonesia since its founding.
As of December 31, 2020, Prudential Indonesia has its head office in Jakarta with six marketing offices in Bandung, Semarang, Surabaya, Denpasar, Medan and Batam and 371 Marketing Offices (KPM) throughout Indonesia. Until the end of 2020 Prudential Indonesia served 2.8 million life insured supported by more than 243,000 licensed sales force.
Prudential Indonesia registered to and supervised by Financial Services Authority (OJK).
About Prudential Syariah
PT Prudential Sharia Life Assurance (Prudential Syariah) has been operating since 2022 following the establishment of PT Prudential Life Assurance (Prudential Indonesia)’s Sharia business unit as a separate entity. Prudential Syariah offers Sharia-based life, health, and financial protection solutions to meet the growing needs of Indonesians.
Since its inception in 2007 as a Sharia business unit within Prudential Indonesia, until today as a separate entity, Prudential Syariah remains committed to providing all Indonesians with access to protection solutions by promoting universal and inclusive values, in accordance with the ‘Sharia for All’ principles.
Supported by our core values which are delighting customers, product and service innovations and advancing digitalisation, Prudential Syariah is committed to strengthen its position in manifesting its aspirations in becoming one of the leading Sharia economic contributors in Indonesia and making Indonesians healthier & wealthier.
PT Prudential Sharia Life Assurance is registered to and supervised by the Financial Services Authority (OJK).
