The insurance industry is based on trust. Hence, it must always prioritize good corporate governance
Jakarta (ANTARA) - The sharia insurance industry should accord high priority to good corporate governance in order to build public trust, according to Vice President Ma'ruf Amin.

"The insurance industry is based on trust. Hence, it must always prioritize good corporate governance," Amin noted at the virtual event to mark the 18th Anniversary of the Indonesian Sharia Insurance Association (AASI), Saturday.

Building public trust is a lengthy process that should always be prioritized and maintained by the Islamic insurance industry, he emphasized.

Building public trust begins with creating professional insurance agents that offer clear, honest, and transparent information on insurance products.

"Insurance companies must play a role in increasing public literacy on insurance, including literacy on sharia insurance," Amin explained.

He also reminded the sharia insurance industry to manage public funds in an accurate and prudent manner to build a positive image of the insurance industry.

"Funds' management by companies through investment must be conducted wisely but also prudently, so that it can strengthen the positive image of the insurance industry in the long term," Amin affirmed.

Moreover, the vice president called on the sharia insurance industry to expedite the separation of business units or spin-off as regulated in Law Number 40 of 2014 on Insurance.

"Separating the sharia business unit into a separate business entity will encourage companies to be more focused and innovative in developing their business," Amin stated.

Based on a report from the Financial Services Authority (OJK), some 43 of the 59 sharia insurance companies are sharia business units, so within the deadline until 2024, these business units must be converted to sharia insurance companies.

"To this end, the Indonesian Sharia Insurance Association (AASI) must encourage and assist each of its members to convert business units according to the predetermined time target," he remarked.

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Translator: Fransiska N, Resinta S
Editor: Sri Haryati
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