Takaful Market Share Up 0.2%

Takaful market share increased 0.2 percent in the first quarter of 2010 ofachievement at the end of 2009. As of March 31, 2010 Takaful market share stood at 2.96 percent, up from 2009 is 2.79 percent.

Head of Bapepam-​​LK Sharia Insurance Ministry of Finance, YattyNurhayati, said Takaful premiums increased in 2009 which amounted to 44 percent has been exceeded conventional insurance premiums arebelow 20 percent. In 2009 Takaful posted gross premium of Rp 2.3 trillion, an increase from 2008 which amounted to Rp 1.6 trillion. "As of March 31, 2010 Takaful premiums collected amounted to Rp 701billion from Rp 23.6 trillion, or 2.96 percent market share," said Yatty to the media, June 4.

He said although the market share of TakafulIndonesia is still relatively small compared to Malaysia, which hasreached above six percent, but Indonesia has the opportunity to growlarger. He said the number of Takaful players in this year was increased by onelife insurance company and a unit of Islamic sharia insurance. With the addition is now there are 44 Islamic insurance business.

The details are the three Islamic insurance company, an Islamic insurance, Islamicinsurance 17 units, 20 units of Islamic insurance and reinsurance three units of sharia. As of March 31, 2010, Takaful investment amounted to Rp 2.3 trillion, the claim of Rp 280 billion and assets of Rp 3.2 trillion. Of life insuranceassets are sharia has its share of Rp 2.3 trillion and insurance andreinsurance losses of Rp 916 billion. While life insurance premiumssharia Rp 558 billion and insurance losses and Rp 143 billion

Takaful Islamic foundation

A. Definition of Takaful (Takaful)
1) Meaning of the Word Takaful
In language, takaful (تكافل) derived from the root word (ك ف ل), which means help, give a living and take over a person's case. In the Qur'an the word takaful is not found, but there are some words that same meaning to takaful words, as in:

QS. Thoha / 20: 40
إذ تمشي أختك فتقول هل أدلكم على من يكفله

"(It is) a woman when your brother goes, then he said to the (family of Pharaoh): 'May I show you someone who will maintain it?"

QS. Annisa / 04: 85:
ومن يشفع شفاعة سيئة يكن له كفل منها
"And whoever gives syafa'at that bad, surely she would bear a share (sin) thereof .."

Surety bond business is expected to grow 20%

Business activity through a surety bond guaranteeing the project is estimated to grow 15% -20% this year, along with underwriting requirements.

This opportunity is assessed following a more open after the issuance of Presidential Decree No.. 54/2010 on Government Procurement of Goods and Services in lieu of the Presidential Decree. 80/2003 to cancel the surety bond product removal plan.

Chairman of the General Insurance Association of Indonesia (AAUI) Cornelius Simanjuntak said the publication of the regulation of business activity has returned to the surety bond insurance industry.

"I think the surety bond business could be better this year with growth of around 15% -20%, due to the issuance of PP. 54/2010. Regulations that make them no longer have to worry about organizing the business, "he said, today.


Meanwhile, construction of infrastructure in the country in 2011 considered an important issue for business surety bond, considering the budget for the Ministry of Public Works reached Rp57, 2 trillion, up 56% from Rp36 trillion last year.

Director of Insurance Artarindo Suhartono said it would target the surety bond business activity grew 50% in tahunini, following the company hopes soon bagging permit non-construction surety bond.