In Indonesia, Islamic insurance, known as asuransi syariah, is supervised by the Otoritas Jasa Keuangan, which requires insurers to separate their Sharia units before the end of 2026, so around forty-five standalone Sharia companies could then operate.
Otoritas Jasa Keuangan, the insurance supervisor
The OJK, Indonesia's financial services authority, oversees the whole insurance sector, Sharia business included. It steers the timetable for separating Islamic units, under the successive leadership of Ogi Prastomiyono and then Hernawan Bekti Sasongko, according to the business daily Kontan.
A pioneer of Islamic windows
According to a 2012 press release from Pakistan's SECP, Indonesia was the first country to allow takaful windows, Sharia units housed within conventional insurers. Pakistan, which followed with its Takaful Rules, described itself at the time as the second.
The unit usaha syariah
Locally, these windows are called unit usaha syariah, shortened to UUS. They sit alongside fully fledged Sharia companies, forming a dual system. For the policyholder, a UUS policy is still issued by a conventional company, even though the participants' fund is managed separately.
Regulation POJK 11/2023 and its Article 9
Regulation POJK number 11 of 2023, in its Article 9, requires insurers and reinsurers to separate their Sharia units before the end of 2026. Two routes are available: set up a new Islamic company or transfer the portfolio to an existing Sharia company.
Progress of the Sharia unit separation
In December 2025, the OJK counted seventeen fully separated Sharia companies and twenty-nine insurers planning a spin-off in 2026. By 27 July 2026, forty-one revised plans had been filed: twenty-three new company formations and eighteen portfolio transfers.
Fifteen deals already completed
As of that same July 2026 date, fifteen spin-offs were complete, namely five new companies and ten portfolio transfers. For anyone holding a UUS policy, this likely means a change of insurer, to be checked in the letters received and in the policy endorsement.
Prudential Syariah, a standalone subsidiary
PT Prudential Sharia Life Assurance, known as Prudential Syariah, is the Sharia entity that emerged from separating Prudential's Islamic business. In May 2026, it publicly backed the spin-off movement as a way to broaden the Indonesian Sharia market.
Allianz Life Syariah and other named players
Allianz Life Syariah, whose president is Elmie Bin Aman Najas, is also among the players. A consumer explainer from Gramedia mentions PT Asuransi Takaful Keluarga and PT AXA Mandiri Syariah, two names to confirm with the OJK before taking any step.
Penetration still low
In May 2026, Prudential Syariah cited roughly 244 million Muslims against only one million Sharia insurance policies. The gap shows how much room the market has to grow and how thinly Islamic protection products have spread among Indonesians.
Contract mechanisms worth examining
As elsewhere, managing an Indonesian Sharia fund may rely on a management fee or on sharing investment returns. Before signing, read our explanation of how the operator is paid under wakala and ask for the exact split set out in the contract.
Expatriates and travellers from Malaysia
Residents comparing with Malaysia and its separately licensed takaful market will notice a difference: separate licences already exist there, whereas Indonesia's separation is still under way. So check the exact status of the entity that issued your policy.
Official regulator link to confirm
We could not access the OJK's main website during our checks. The official domain is well known, but we recommend going through the authority's portal to obtain the up-to-date list of licensed Sharia companies after the spin-offs.
How to take out an asuransi syariah policy
- Check with the OJK that the company holds a Sharia insurance licence, and establish whether it is a standalone company or a UUS.
- If your insurer's Sharia unit has been separated, identify the new entity or the company that took over the portfolio.
- Request a description of the operating model and the opinion of the Sharia supervisory board attached to the company.
- Compare the contribution, management fee and underwriting surplus sharing rule across several Sharia offers.
- Read the exclusions and waiting periods, especially for family protection and hospitalisation products.
- Report any claim in writing to the entity named on your most recent policy, enclosing the supporting documents.
What makes up the price of a Sharia policy
| Element | Function | Factors that change it |
|---|---|---|
| Contribution to the tabarru fund | Pools claims among participants | Age, health, sum insured, use of the asset |
| Operator management fees | Cover administration and distribution | Each Sharia company's scale |
| Investment share | Splits returns on compliant investments | Contract model and asset performance |
| Underwriting surplus | May be paid back to participants | Claims experience and allocation clause |
| Excess or co-payment | Amount left for the policyholder to pay | Cover option selected |
Paperwork to gather in Indonesia
- Indonesian KTP identity card, or a passport and residence permit for a foreigner
- Proof of residence
- Vehicle registration document for motor cover
- Property ownership certificate for home insurance
- Health questionnaire for Sharia life or hospitalisation cover
- Islamic financing agreement where the policy secures a loan
Common mistakes in Indonesia
- Ignoring letters announcing the transfer of your Sharia portfolio and still filing claims with the former insurer.
- Assuming a UUS policy comes from a standalone Islamic company when it still depends on a conventional insurer.
- Trusting insurer lists published by blogs or consumer websites without cross-checking them with the OJK.
- Accepting a product sold as syariah without asking which Sharia supervisory board approved it.
- Overlooking the surplus allocation clause in the belief that all of it automatically goes back to participants.
Common questions on Indonesian Sharia insurance
What does POJK 11/2023 require of Indonesian insurers?
Its Article 9 requires insurers and reinsurers to separate their Sharia units before the end of 2026, either by creating a distinct Islamic company or by transferring the Sharia portfolio to an existing company. The OJK monitors these operations.
How many Sharia insurers will operate by end-2026?
According to the OJK, if all announced projects go through, around forty-five Sharia insurance companies will operate by the end of 2026, against seventeen fully separated entities in December 2025. This figure remains a projection tied to ongoing spin-offs.
Is my UUS policy still valid after a spin-off?
In principle, the portfolio is taken over by the new company or by an existing Sharia company. Check the endorsement or notice you received, the name of the acquiring insurer and the contact details to use for future claims.
Which Sharia insurers are active in Indonesia?
Verified names include Prudential Syariah and Allianz Life Syariah. Consumer sources also mention Asuransi Takaful Keluarga and AXA Mandiri Syariah. Always confirm their licence with the OJK before taking out a policy.