Indonesia’s takaful sector facing "challenges" - Fitch

Indonesia, Fitch, takafulDespite expectation of growth in 2023, Indonesia’s takaful sector is facing some long-term challenges due to limited demand. This is the conclusion of a report published by credit rating agency Fitch. The agency’s  Indonesia Takaful Dashboard: 2023 forecasts that the sector will grow by 5-10% this year, supported by the developing Islamic finance market. However, a lack of awareness and demand from investors is likely to present long-term challenges for takaful products in Indonesia. Market share of Indonesia’s insurance sector increased slightly in 2022, up from 8% to 9% in the last 12 months, while Indonesia maintained its position as the fifth largest takaful market globally. But a lack of financial literacy in sharia products, the distribution channel gap, small capital base of the sector and limited product range will make further growth challenging, according to Fitch. © 2023 funds global asia

Executive Interviews

Executive interview: PGIM CEO on where the ESG flowers should bloom

Sep 27, 2021

David Hunt, president and chief executive of PGIM, tells Romil Patel about leading a top 10 global asset manager in times where “empowering and encouraging the kind of investment decisions as...

Executive interview: Nicolas Moreau’s orderly transition

Jul 12, 2021

Nicolas Moreau, CEO of HSBC Asset Management, is moving to Asia as the firm looks to connect more directly with the region’s growth story. ESG is also a key focus – including the ‘just’ carbon...


Roundtable: Singapore comes of age as an Asian ESG hub

Dec 01, 2021

Strong ESG credentials strengthen the case for Singapore as a leader in Asia of the post-Covid recovery. Our panel discusses the risks and opportunities.

Roundtable: How well geared are Japanese assets for a new world?

Jul 12, 2021

As we prepare to emerge from Covid, experts look at overcoming demographic issues through a combination of good tech and corporate governance, improving productivity and meeting an ambitious government carbon emissions reduction target. Chaired by Romil Patel.