Economics
Indonesia Shariah Insurance Growth Attracts AIG
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Indonesia’s Islamic insurance industry is expanding three times as fast as Malaysia’s, prompting American International Group Inc. and Sun Life Financial Inc. to seek a broader presence in the nation.
AIG is considering offering Shariah-compliant reinsurance, known as retakaful, in Indonesia in two years, the company’s Malaysia Chief Executive Officer Antony Lee said in a March 6 interview in Kuala Lumpur. The initiative would complement an Islamic insurance business it started in the Southeast Asian nation in 2010 and speed up Indonesia’s industry, which grew 34 percent to a record 22 trillion rupiah ($1.7 billion) in 2014, outpacing the 9 percent expansion to $6.1 billion in Malaysia.