Zurich Syariah Sees Positive Impact from OJK's Spin-off Regulation

Strengthening Islamic Insurance Industry

The Financial Services Authority (OJK) has mandated that insurance/reinsurance companies must complete the spin-off of their Islamic Business Units (UUS) by the end of 2026, as stated in Article 9 of POJK 11/2023 ¹

. PT Zurich General Takaful Indonesia (Zurich Syariah) views this regulation as having a positive impact on the Islamic insurance industry's future growth.

Growth Opportunities in Islamic Insurance

Zurich Syariah's President Director, Hilman Simanjuntak, highlighted that the current low penetration of Islamic insurance and increasing economic activity create significant growth opportunities for the industry in 2026 ²

. The company plans to optimize various opportunities to drive its performance in 2026.

Strategic Collaborations and Challenges

Hilman emphasized the importance of strategic collaboration with the Islamic ecosystem, including religious organizations and Islamic financial institutions, to expand market penetration ²

. However, the company also anticipates challenges such as global economic dynamics and extreme weather conditions that could potentially disrupt infrastructure and impact performance.

Industry Outlook

The spin-off regulation is expected to lead to an increase in the number of Islamic insurance companies, potentially strengthening the industry. Zurich Syariah views this as a step towards industry consolidation rather than increased competition ¹

.