JAKARTA: PT Syarikat Takaful Indonesia is making an effort to expand its Islamic-based insurance business in the hope of turning the company into a leading player.
Managing director Mohamed Arif Abdul Rashid said Takaful Indonesia had changed its business strategy by focusing on the retail market, with the target of capturing a 10% market share over a 10-year period.
Currently, Takaful Indonesia, which is 56%-owned by Syarikat Takaful Malaysia Bhd, holds only slightly less than 1% share of the market.
“We are optimistic of achieving the target as we have the competitive edge compared with the other insurance companies, and the increased awareness among Muslims in opting for Islamic-based insurance,” he said at a press conference here to launch the company's two new products.
The products are Takaful Abror, which provides insurance coverage for vehicles, and Takaful Education Fund, an insurance scheme that provides coverage for school-going children.
Both products are an extension of the existing ones managed separately by its subsidiaries - PT Asuransi Takaful Umum and PT Asuransi Takaful Keluarga.
The two subsidiaries are managing 10 different products each including the new insurance schemes, to cater for the lucrative Indonesian market, where some 85% of the population of 210 million people are Muslims.
Arif said Takaful Indonesia posted a pre-tax profit of Rp5bil (RM2.5mil) last year. The group profit for this year was projected at Rp7.3bil (RM3.6mil), he said.
He said Takaful Indonesia would raise its paid-up capital to another Rp70bil (RM35mil) this year to expand its investment especially in the family takaful schemes.
On the two new products, Arif said that Takaful Indonesia had set a target to achieve a total premium of Rp72bil (RM36mil) this year - Rp60bil from Takaful Abror and Rp12bil from Takaful Education Fund. – Bernama