Saturday, May 19, 2012

INDONESIA- TAKAFUL - Sharia insurance to be standardized this year

www.thejakartaglobe.com -The Association of Sharia Insurance of Indonesia (ASII) plans to standardize the sharia insurance sector by releasing sharia insurance policy standards by the beginning of second half of this year.
ASII chairman M. Shaifie Zein said that standardization was needed so that customers had certainty regarding sharia insurance policies.
The regulation will not standardize the pricing of insurance premiums.
“The important thing is to make sure that companies behave appropriately, not to slap them with fixed-price insurance premiums,” he told the press during an international conference on sharia insurance on Monday.
“That's why it's important for sharia insurance companies to have actuaries.” (source)


Developing an international standard for sharia insurance will be difficult, according to Zainal Kassim, a senior partner of the Malaysian actuarial firm Actuarial Partners Consulting.
“Each country bases its sharia insurance on different principles, hence the difficulties in standardizing sharia insurance globally,” Kassim said.
Sharia insurance is different from conventional insurance as it uses the Islamic principle of takaful, a mutual support where policy holders contribute money to a fund managed by the company for use in the event of a loss by one of its members. (han)

Source:  http://www.thejakartapost.com/news/2012/05/14/sharia-insurance-be-standardized-year.html - May 15, 2012

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