IslamicFinance.de

Indonesia's Islamic insurance market will be reshaped over the next decade by a new law that requires conventional firms to spin off their syariah-compliant units, while encouraging more foreign investors to enter the market. The new law, which came in force last month, requires insurers to spin off their windows within 10 years. Moreover, the law maintains an 80 per cent limit to foreign ownership, which will keep the market open to new players, while closing some loopholes that allowed foreign firms to have full control of their operations. The rules will also require larger and better trained sales forces since the spin-offs will require separate agents for conventional and takaful products.