Islamic Insurance: A Potential Niche Market of Indonesia

Abstract

Indonesia Islamic insurance is potentially expected to grow along with the increase in Islamic financial market. Hence, this paper purposes to develop strategies and policy recommendations for stakeholders, governments, and related institutions in the development of Islamic insurance industry in Indonesia. This paper applied ANP approach by classifying it into three aspects, namely problem, solution and strategy. Problem and solution aspect consists of four clusters include internal, customer, competition, as well as regulation. In addition, strategy offered is strategy to improve the quality of service, strategy to improve the relationship and synergy between the authorities and the Islamic Financial Institutions, as well as strategy of affirmative policy that supports the development of Islamic insurance by the authorities and government.