WAQF-based Insurance Strategies in Indonesia Sharia Life Insurance Using Analytic Network Process (ANP)

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Nina Mudrikah Hariyati, Tatik Mariyanti, Hendry Tanjung, Jaih Mubarok


Waqf based insurance was introduced to the Indonesian community by National Sharia Board Fatwa No 106/2016 concerning sum assured and investment fund waqf in Islamic Life Insurance. This regulation allows participants of life insurance to waqf part of their sum assured insurance benefit and investment value through waqf organization (Nazhir) which has cooperation with sharia insurance company. Low penetration of sharia insurance and limited awareness of waqf among Indonesian causing this waqf based insurance was not developed well. This study aims to analyze problems in the development of waqf based sharia life insurance in Indonesia, solutions and formulate strategies to be implemented in the development of waqf based insurance. This research method used Analytic Network Process (ANP) that clusters the problems, solutions, and strategies. Research data was obtained through Focus Group Discussions (FGD), in-depth interviews, and questionnaire with 15 experts in the field of insurance, cash waqf and insurance waqf in Indonesia. The results showed that the main problem in the development of insurance waqf is coming from internal company, i.e. lack of management commitment to developing the waqf based insurance and low understanding of waqf among employees and agents, product and features which waqf embedded in unit link product with a high premium, limited variation of waqf payment, expensive waqf distribution, limited waqf infrastructure including manual administrative processes. External problems are the lack of waqf incentives, promotion, and education by regulators, as well as the low level of public understanding of waqf insurance. The proposed internal solution is to increase management commitment by promoting an understanding of waqf opportunities as a new market for sharia insurance as the waqf is unique and specific proposition that in line with sharia insurance concept. The external solution is education through a sustainable literacy program with the theme of economic empowerment and poverty alleviation. Strategic partnership with the moslem community by conducting ‘community & digital waqf marketing through a referral program’ is the main solution to distribute the waqf to moslem community. Externally increasing promotion, education, and regulations related to insurance waqf will promote the waqf to Indonesian.

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