…sharia insurance brings about great benefits to the people as it manages financial risks by upholding the principle of togetherness that is consistent with Islamic values.
Jakarta (ANTARA) - Vice President Ma'ruf Amin on Thursday said he believes that sharia insurance can help people and businesses mitigate any financial risks arising from the current global dynamics.

"If we pay attention to the high level of dynamics happening in the world, we can say that no individuals nor entities are completely free from risks," he underlined during the inauguration of a sharia insurance holding.

The inauguration was broadcast on his secretariat's YouTube channel and accessed by ANTARA from Jakarta on Thursday.

The dynamics being witnessed across the world currently — such as economic slowdown, war, threats from health and climate crises, and natural disasters — could trigger even more complex financial risks, he pointed out.

In view of this, insurance companies are there to help individuals and entities protect themselves from financial risks, he said.

"This also applies to sharia insurance. As part of the insurance industry, Sharia insurance brings about great benefits to the people as it manages financial risks by upholding the principle of togetherness that is consistent with Islamic values," he elaborated.

The principles of fairness and sustainability as well as a relatively balanced distribution of risks and profits are some competitive advantages of sharia insurance that must be highlighted, he added.

"The government has continued to invest efforts to advance sharia economy and finance, striving to make them new engines that stimulate national economic growth," Amin said.

He further said that sharia finance has created opportunities for the sharia insurance industry to continue to actively contribute to the development of the sharia economy and finance ecosystems.

The Vice President highlighted that the government has been collaborating with the relevant parties to support the national financial industry and its efforts have included the devising of Law No. 4 of 2023 concerning Financial Sector Development and Strengthening.

In his speech, Amin also urged the sharia insurance industry to take a more prominent role in the national sharia economy and finance ecosystems.

"That way, we can expect stronger and more sustainable synergy that is required for building people's awareness about the importance of insurance," he said.

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Translator: Andi Firdaus, Tegar Nurfitra
Editor: Rahmad Nasution
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