Research and Markets analysts have forecast that the takaful market in Indonesia will grow at a CAGR of 29% over the period 2013 to 2018 as a result of geographical expansion and rapid growth in the Indonesian economy. However, the low awareness of the Takaful system could counter growth.
According to the report Takaful Market in Indonesia 2014-2018 key vendors in this space are Asuransi Takaful Keluarga, Asuransi Allianz Life Indonesia, and Asuransi Takaful Umum. Other vendors mentioned in the report include Asuransi Jiwa Manulife Indonesia, and Askes.
"The changing demographics of Indonesia and the increasing importance of Islamic banking are producing a lot of untapped potential and opportunities for takaful insurers. The country comprises more than 18,000 islands, which would require the partnership with an agency to enforce marketing strategies uniformly across all the islands and effective sales as well. Partnership with banks will present a new and readily available distribution channel, which could open up a gamut of new opportunities for takaful operators to develop shari'ah-compliant bancassurance products," said an analyst on the research team.
According to the report, Indonesia has a large Muslim population who are inclined to purchase products that comply with shari'ah principles, while the non-Muslim population is also showing an interest in the products.