Ready To Do Spin-off, Sompo Insurance Pockets OJK Approval

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JAKARTA - PT Sompo Insurance Indonesia (Sompo Insurance) announced its readiness to spin-off its Sharia business unit into a separate entity in 2024. For this reason, the company has obtained official approval from the Financial Services Authority (OJK) to realize the plan.

Chief Executive Officer of Sompo Insurance, Eric Nemitz, revealed that his party had also submitted the required work plan and was committed to continuing to work closely with OJK to ensure the company complies with all requirements for the corporate action.

Sompo Insurance Syariah itself was founded in 2017 and is operating until now. “The spin-off is a strategic move for us at Sompo Insurance. With more than four years of experience in Indonesia, we really understand the potential of the existing market, and we are here to support customers and invest in the local market to grow Indonesia's sharia economy," said Eric, in an official statement received by VOI, Friday, March 11. .

Sompo Insurance Syariah's product portfolio meets the protection needs of individuals and businesses, offering insurance products for retail, including Sharia Asset Protection to protect individual customers' property and motor vehicle assets, and Sharia Business Protection which offers property all risks and protection against earthquakes targeted at the corporate sector.

In addition, the company has also forged strategic partnerships with banks, corporations, and multi-finance companies as part of its efforts to lay the groundwork for growing a deeper presence in key sectors of the Islamic economy.

The demand for Islamic financial products and services, including insurance, continues to increase amid the rapid growth of the Islamic economy. However, with growing demand, the share of Islamic insurance assets in the national insurance industry has only reached 2.83 percent.

"This provides a great opportunity for insurance companies to develop their sharia business in Indonesia, which has a large Muslim population and low insurance penetration rates," he said.

After obtaining approval for the spin-off, Sompo Insurance Syariah continues to strengthen its internal infrastructure and sharia-skilled resources to prepare the company to become a separate entity in 2024.

To achieve this important milestone, the company is preparing to further develop its Sharia insurance portfolio, which currently consists of Sharia AutoFirst and Sharia property all risk.

Sompo Insurance Syariah also continues to strengthen company resources by conducting Sharia insurance training for the sales team and internal agents, socializing Sharia insurance products for external agents and multi-finance partners, as well as preparing for expansion in e-commerce channels.