Dyah Eka Widyanti had been a banker for 15 years, her last post as a funding officer, when a former colleague who left the sector for the insurance profession invited her to a presentation about becoming a financial services advisor.

“Seeing my situation at the time, I wondered if I could achieve what I wanted for my life in the next five years, and I saw that transitioning from a bank employee to the insurance business was the fastest way that would allow me to have financial freedom, more time and legacy income.”

The 16-year MDRT member from Jakarta, Indonesia, also saw selling insurance as a noble profession and focused on providing Sharia insurance.

“I wanted to make an impact on every household in Indonesia by providing insurance protection to build financial security, family legacies and legacy income,” she said. “Insurance is about love and responsibility. In Indonesian society, families without coverage suffer when children and spouses are left behind or when a family member suffers from a serious illness.”

Initially, Widyanti was concerned that she would be perceived as an advisor preoccupied with providing one kind of product when conventional wisdom suggests that what the clients want is supposed to be the priority. But she overcame this angst and gained confidence by presenting Sharia insurance to prospects as an avenue for enabling policyholders to help thousands of participants while protecting themselves and their families. She has more than 500 clients, and 90% of her sales involve Sharia insurance products.

What is Sharia insurance?

Sharia insurance is based on Islamic religious principles of purity, certainty and the concept of mutual assistance. Unlike conventional insurance, which basically transfers risk from the insured to the insurance carrier, Sharia insurance policyholders give tabarru — an Arabic word meaning donation, gift, contribution. People providing tabarru do so with the intention of doing a good deed without expecting any consideration or repayment. Tabarru is donated into a takaful, or a pool of funds that are used not for generating profit but to compensate other participants when they suffer an illness, disability, an accident or death. The participants jointly own the funds, and an insurance company manages the money per the guidelines of the Sharia supervisory board for a fee.

Some clients are non-Muslim or are not familiar with Islam, but they are attracted to the concept that Sharia insurance participants are helping the broader community regardless of their religion, ethnicity, nationality or location in addition to providing for their own protection, according to Widyanti. The mutual assistance principle of Sharia insurance also appeals to prospects who are suspicious of traditional insurance products.

“When people typically give to charity, they’re helping one or two people directly, like a friend or family member facing financial hardship. However, with Sharia insurance, we can potentially assist hundreds of thousands or even millions of participants facing risks or calamities,” Widyanti said. “When non-Muslim prospects ask why Sharia insurance, I explain that it’s not just for Muslims, because when we talk about helping each other, all religions teach it.”

The business case

Besides satisfying the Islamic principle of mutuality, Sharia insurance also is in line with the Quran’s encouragement to prepare for the future. Widyanti touts her product’s commitment to pay claims promptly, even when large payouts are processed through reinsurance carriers. One of her clients passed away during 2021 from colon cancer, and the life insurance claim was settled one month later for more than $940,000. The same client previously had two claims from four critical illness insurance policies, each more than 10 years old. The first claim covered a heart stent placement to relieve a blockage, and the second was for the cancer diagnosis three years later. Both claims, which totaled almost $275,000, were paid out within two weeks of filing.

Widyanti believes that Sharia insurance has the potential of becoming more popular in the future as those products become more innovative, and public awareness grows about the importance of financial protection. The products can also gain adherents from people who are drawn by the Sharia principles of transparency and protection from usury.

“I have a mindset of always being positive, not giving up easily, to keep learning, having the mentality of being a winner, not being complacent and serving clients wholeheartedly. This mindset and my focus on selling Sharia insurance have given me many big wins,” Widyanti said.

Lia Eunika Pamela writes for Team Lewis, a communications agency assisting MDRT with content development for Asia-Pacific markets. Contact mdrteditorial@teamlewis.com

Protecting families through Sharia insurance