Indonesia’s Financial Services Authority (OJK) has announced that two insurance companies will spin off their takaful windows by establishing separate takaful companies this year, while a third insurer will submit an application for a takaful licence in December 2024. Additionally, a fourth insurer is set to complete the divestment of its takaful window to a new company by the end of this year. The OJK has directed that the separation of Islamic and conventional insurance units is mandatory, with a deadline of 31 December 2026. If all goes to plan, there will be 30 new takaful companies in Indonesia by 2026, in addition to the 15 wholly-Islamic insurers already operating in the country.
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