Growth of Islamic Insurance in Indonesia

Today the growth of Islamic insurance is very high because many people are aware of the importance of having insurance. Islamic insurance has many advantages over non-Islamic insurance that many enthusiasts who are interested to have an Islamic insurance. Insurance can be a long term investment and will also self-protection that are not desirable things. Financial products themselves have become human needs and those of people today, more selective use of financial products is to avoid things that contain usury.
Muslim communities, avoid things that are usury is mandatory so that it also encourages the growth of a wide range of Islamic financial products including Islamic insurance. Right now insurance companies have grown rapidly, although not too much known as Islamic banking. Differences of Shariah Insurance and conventional insurance alone may not be too visible but basically the difference lies in the transaction agreements. In Islamic insurance, the customer will engage in a community and they will bear one another when there is disaster. Whereas in conventional insurance, customers buy protection from insurance companies to get protection if the accident occurred.

Financial products in the years 2010-2011 a trend today is the product of sharia, so many owners of capital that invest in financial products. In Indonesia, Islamic products have mushroomed since Indonesia is predominantly Muslim community interest to have noted that financial product Shariah. Stretching of Islamic finance is now more lucrative and a lot of insurance companies based on sharia system. Due to the growing premium income rises, do not be surprised if many companies are competing in a business setting up of sharia. Sharia is the company's growth was rapid and many experts predict that the growth of insurance premiums will rise to the figure of 30% (Shariah Insurance Association of Indonesia (AASI)). In terms of premium income, Islamic insurance industry in 2010 reached the amount of four billion dollars. While in 2011, the Islamic insurance industry premium income reached Rp.4.97 trillion. This is reasonable because of high interest and enthusiasm for the product by the various elements of the Islamic financial community that a lot of financial products that add to its branch in the form of sharia.

Challenges in the years 2010-2011 that faced by many syariah-based company is so diverse that starts from the optimal service delivery and improvement and development of human resources. In addition, the development of Islamic financial products are appropriate and needed by people also can be a big challenge. Actually, the Islamic financial products by itself is evolving, but the difficult thing is to create competition among Islamic financial products company that does not kill his opponent. In addition, capital can also affect the development of Islamic financial products and it is worthy to be taken into account.

Islamic financial products to create an alternative funding is not easy, because educating the public about Islamic finance itself is still lacking. To educate people is very important even though the majority Muslim Indonesia. Based on the data collected, the penetration of the Shariah Insurance fund itself has reached 3.18% (Bapepam-LK) and get a substantial premium. There are so many predictions about the prediction that high growth of Shariah Insurance. The growth of Islamic financial products in the Middle East itself is experiencing ups and downs caused by the Shariah Insurance market saturation. While the development and growth of Islamic financial products in Southeast Asia itself is relatively stable, especially in Malaysia.

The contribution of Shariah Insurance Malaysia's own country has reached 1.06% of gross domestic income and in Indonesia only reached 0.05% (E & Y: 2009). Development of Islamic companies in Malaysia can thrive because they are backed by the government. However, in Indonesia has a completeness of Islamic insurance regulation is better than the Malaysian government. Even the Islamic industry itself had been to Indonesia to study the regulation of Shariah Insurance. In Indonesia alone, the chances of 2012 against the Islamic financial products is still very wide open. Islamic insurance market opportunity is still in great demand by the majority of the people of Indonesia.

Based on data from the Bureau of Insurance Capital Market Supervisory Agency Financial Institutions, the capital market for Islamic insurance was still below 3% and the majority of the population of Indonesia is itself a Muslim community that provides many opportunities for the Islamic financial industry to further develop. By providing products that fit customers' needs, the Islamic financial industry will be growing rapidly. Many insurance companies recorded growth of Islamic sharia sharia high with a premium of 50% in the first quarter.

The views of experts on the development of Islamic insurance in 2012 alone will be to contribute up to 30% and estimate the prospects of industrial growth in sharia a fairly high for this year. In 2011 alone, the financing of Islamic financial products has grown to 25-30% and the Islamic financial assets alone have grown by 70% (Indonesian Shariah Insurance Association). However, the development and growth of Islamic finance industry itself will still be supported by various factors such as economic growth in Indonesia and also the market share of Islamic financial industry.

The growth of Islamic finance is estimated to be higher than on conventional bank finance growth. Confidence and optimism for the future economic conditions may also affect the performance of human resources in the Islamic financial industry. It could be said also that the growth of Islamic finance in Indonesia slowly but surely as Islamic insurance market has been and is still showing growth. Although a high market interest, but unfortunately the industry grows and develops slowly. But the performance of human resources of the Islamic industry itself shows a quite good performance. In fact, many scholars consider life insurance premium revenue sharia can penetrate more than 3% rate this year.

Substantial market share reflects that Indonesia is very high public interest against Islamic insurance. Unfortunately a very large interest in Islamic financial products this will sometimes not responded by the Shariah Insurance industry to see the industry ketidaksungguhan Islamic Shariah Insurance in the separate unit with a conventional to Islamic insurance company itself. With the growing presence of Islamic insurance on their own without interference from more conventional would allow for faster growth rate. Currently, there are 20 Islamic insurance consisting of 17 Islamic insurance, general insurance Sharh 20, and 3 ReShariah Insurance.

Increasingly widespread growth of Islamic finance and industry have promoted the national finances. While the market share of Islamic financial industry itself is constantly evolving and Indonesia is still wide open market for Islamic finance this. This is in contrast to many other countries like in the Middle East, Europe, and also Malaysia. In the Middle East alone Islamic financial development depends on oil production, and so did in Europe because many banks in Europe who still holds the funds from the oil business in the Middle East. While the industrial development of Malaysia itself sharia is supported by funds managed by the government so that more funds come from government.

Compared to funds from the three countries, the funds in Indonesia is still very far away. However, Indonesia still has a fairly high chance for development and industrial growth rate of sharia. Lots of markets in Indonesia that has not worked. Indonesia itself is actually needed in the system and other financial concepts and managing the economy and institute sharia is the most appropriate alternative. Thus, the active contribution of both local and foreign investors are also indispensable in improving the Shariah Insurance market share in Indonesia. Obviously with the government's support in helping insurance companies develop their market share.