The Importance Of Financial Management And Sharia-Based Insurance Since Early Childhood From Family
JAKARTA - Indonesia as one of the countries with the largest Muslim population in the world, which is 236 million people (84.35 percent of the total population of Indonesia), has enormous potential in the Islamic financial industry. In the last five years, Islamic economics and finance have consistently shown positive progress, both at the national and international levels.
Based on the State of The Global Islamic Economy (SGIE) Report, Indonesia's Islamic market is ranked 3rd largest in the world in 2023. OJK data also states that until June 2024, Sharia Financial Assets total is known to reach IDR 2,756.45 trillion, or grew by 12.48 percent in 2023 year-on-year.
This development shows the increasing public interest in the use of financial products and services based on sharia principles, including sharia insurance, which prioritizes the principle of goodness and help. Although this trend shows a positive direction, the number of people who are literate about sharia-based finance is still very low when compared to conventional understanding of financial products and services.
The results of the 2024 National Financial Literacy and Inclusion Survey (SNLIK), the Sharia Financial Literacy rate were recorded at 39.11 percent, below the National and Conventional Financial Literacy levels at 65.43 percent and 65.09 percent. Meanwhile, the level of sharia insurance literacy in Indonesia only reached 3.99 percent, much lower than conventional insurance literacy which reached more than 45 percent.
The existence of a fairly large gap between Islamic financial literacy and insurance conventionally shows challenges as well as great opportunities for the industry to seek to increase and equalize Islamic-based financial literacy and insurance in Indonesia, in order to increase economic growth and financial inclusion in Indonesia. This needs to be started from the smallest unit of society, namely family.
Ir. Adiwarman Azwar Karim, SE., MBA., MAEP., Consultant Syariah and Economist, emphasized the importance of instilling an understanding of the principles of Islamic financial management from an early age from the family, to encourage the growth of the sharia economy in Indonesia. This was conveyed in the activity of Taklim Management of Sharia Assets (TAMARASYA) held by Prudential Syariah and the Amil Zakat Al-Azhar Institute.
"As Muslims, of course, we want to be prosperous in the world as well as the hereafter to be happy. To make this happen, we need to live in accordance with Islamic principles, namely living a simple, sufficient, and full of benefits for others, including in terms of Islamic finance. These values need to be instilled early by parents in their families in their daily lives, to realize a life full of blessings, "said Adiwarman, in his written statement, quoted Thursday, October 24.
In line with Adiwarman, Rina Elvi Roza, Chief Actuary Officer, Prudential Syariah, on the same occasion stated the importance of building an understanding of sharia financial management from an early age from the family, including sharia insurance.
"Prudential Syariah is committed to making sharia insurance closer and easier for the people of Indonesia to access. We believe that sharia insurance has very beautiful principles and is close to the people of Indonesia, for example, there are tabarru funds that become pool funds whose uses are to help each other," explained Rina.
Baca juga:
The basic principles in Islamic finance also apply to sharia insurance. In its application, sharia insurance has values aimed at bringing blessings together, including:
This is in accordance with sharia principles. Sharia insurance ensures that every transaction is free from Riba, Gharar and Maysir. This makes sharia insurance one of the protections that is in accordance with religious values.
Sharia Insurance operates based on the principles of tabarru (donations) and ta'awun (mutual cooperation). Tabarru's principle encourages individuals to contribute to mutual funds, helping those who suffer losses. So there is help between participants and encouraging mutual responsibility.
In sharia insurance, a surplus from Tabarru Funds is shared among Participants. This surplus sharing model allows Participants to gain financial benefits more than just protection against risks.
How can Sharia Insurance Companies as Managers be required to maintain transparency in the company's operations and financial transactions. Participants get a clear understanding of how contributions are managed and distributed, thus building trust and justice in the system.
Sharia insurance is in line with the principles of social welfare and corporate social responsibility, by prioritizing individual welfare and also contributing to community development. By encouraging mutual assistance and charitable initiatives, sharia insurance builds a culture of social responsibility and affection.
"Prudential Syariah is committed to continuing to encourage insurance literacy so that its benefits can reach a wider community. We will continue to collaborate with various stakeholders, to jointly become catalysts for Islamic economic growth in Indonesia as well as create a life full of blessings," Rina concluded.