Yenny Yusra Journal

In Indonesia, where the majority of the population is Muslim, Sharia insurance is rapidly growing. Once seen as a niche or complementary product, it has now become a standalone industry, with more companies spinning off their Sharia units to cater specifically to this expanding market. This transformation is fueled by rising awareness and a stronger demand for financial services that align with to Islamic principles.  

Enter Wakalahmu, a pioneering insurtech platform, with a mission of redefining how Sharia-compliant insurance is perceived and accessed in Indonesia. According to Anggatama Wiranatakusumah, the founder of Wakalahmu, the company has ambitious plans for 2025.  

A New Era of Sharia Insurance  

Launched in 2020, Wakalahmu is more than just an insurance provider; it’s a digital platform that blends ethical Sharia principles with cutting-edge technology. Offering a range of insurance products, from travel and vehicle coverage to business protection, Wakalahmu ensures its solutions are both reliable and aligned with Islamic values.  

What sets Wakalahmu apart is its strategy: leveraging halal travel as a gateway to introduce customers to other Sharia insurance services. By focusing on community engagement and education, the platform fosters awareness and trust in a financial concept still unfamiliar to many Indonesians.  

“We specifically offer Sharia insurance products, an area that hasn’t been widely explored by traditional players. In the past, many companies hesitated to enter the Sharia insurance market, seeing it as a niche with limited demand. However, recent regulations now require conventional insurance companies to spin off their Sharia units, leading to increased development in this sector,” says Anggatama.  

A 2014 OJK mandate required conventional insurers to spin off their Sharia units into independent entities by 2024. This regulatory shift has left the Sharia insurance market fragmented, with no clear leader post-spin-off. This presents an opportunity for Wakalahmu to establish itself as a key player by combining ethical Sharia principles with innovative technology.  

A Digital Platform Built on Trust 

Technology is playing a crucial role in the growth of Sharia insurance. Many companies are leveraging digital platforms to reach a wider audience. In general, when it comes to insurance, many people don’t see it as a daily necessity. Even with the rise of mobile apps, most users hesitate to install them unless they see immediate benefits. A key decision that shaped Wakalahmu’s approach was prioritizing a web-based platform over a mobile app.  

“Insurance isn’t something people use daily,”explains Anggatama. “Even if we had an app, people likely wouldn’t install it. That’s why we built a website offering general insurance, including property, housing, business, vehicle, travel, personal accident, and microinsurance.” 

Despite its potential, Sharia insurance still faces several challenges. Many Indonesians, even those who are Muslim, are not fully aware of the differences between conventional and Sharia insurance. Some perceive them as the same, while others are hesitant to switch due to a lack of understanding of the benefits of Sharia-compliant products. “The biggest challenge is educating people,” says Anggatama. “Many assume Sharia insurance is just like conventional insurance, but it operates on ethical, shared responsibility.”  

To bridge this gap, Wakalahmu has adopted a community-based marketing approach, working with travel associations, mosque empowerment groups, and community organizations to educate potential customers. This approach not only helps in expanding their customer base but also aligns with the core principles of mutual assistance and shared responsibility.  

Popular Products and Strategic Partnerships 

Wakalahmu’s most popular insurance products include:  

• Travel Insurance – Especially for Umrah and halal travel, with premiums often under IDR 100,000.
• Car Insurance – Offering financial protection for vehicle owners.
• Personal Accident Insurance – Providing coverage for unexpected injuries.

Property and vehicle insurance premiums are regulated by OJK, ensuring fairness and transparency. Beyond providing insurance, Wakalahmu upholds Sharia’s ethical principles by emphasizing mutual risk-sharing. Profits are not only distributed fairly but also allocated to charitable causes like zakat and infaq. This model appeals to both Muslim and non-Muslim customers who value transparency and ethical financial practices.  

“We’re not just selling insurance; we’re building trust,” says Anggatama. “Our goal is to make Sharia insurance accessible and relatable to everyone, regardless of their background.”  

Meet the Visionaries Behind Wakalahmu 

Wakalahmu’s success is driven by a team of seasoned professionals with diverse expertise in insurance, technology, and Sharia economics. Leading the charge is Anggatama Wiranatakusumah, the founder and a veteran of the general insurance industry with over 15 years of experience. He is joined by Dani Ruswidiyana, a UX/UI expert with more than 15 years of experience in web and app design, and Severiano Ariesaputra, a human resources specialist with a decade of managerial experience in the insurance sector.  

The team is further strengthened by Gogor Ariyo Pradono, the Chief Strategic Development Officer, who brings 19 years of expertise in business and product development. Ensuring that all operations are Sharia-compliant is Dr. Kuncoro Hadi, ST., MSi, the Sharia Advisor, a respected academic and practitioner in Sharia economics. Rounding out the leadership is Roedy WK SH., MH., MBA, the Legal Advisor, who provides guidance on corporate and financial law.  

Future Growth and Expansion 

While Wakalahmu initially focused on Jabodetabek, it is now expanding to Sumatra, Padang, Medan, Pekanbaru, and Makassar, where demand is rising. Looking ahead, Wakalahmu has ambitious plans to expand its offerings and enhance its technology:   

• Health and Life Insurance – Looking into new types of products.
• Software as a Service (SaaS) Platform – Improving services for our customers and partners.
• Scaling Operations – Interested in funding options to help grow faster in Indonesia.

The adoption of advanced technologies like AI and mobile apps is still limited, primarily due to funding constraints. Wakalahmu is bootstrapped and relies on organic growth, making it challenging to invest heavily in technology. 

“The challenge in funding is that investors often see Sharia insurance as just another competitive product. But we’re not just competing; we’re building a market that aligns with ethical and religious values,” Anggatama explained.  

Despite bootstrapping, Wakalahmu continues to expand strategically. While funding is an option, the company prioritizes sustainable growth over aggressive scaling through high burn rates and deep discounting. The focus remains on building trust, fostering education, and growing organically. 

Competition and Market Differentiation

Indonesia’s insurtech sector is experiencing rapid growth, but insurance penetration remains low. As of June 2021, OJK reported an insurance penetration rate of just 3.11%, leaving 96.89% of the population uninsured. Despite this gap, the insurtech sector is gaining traction. In early 2024, Indonesian insurtech companies attracted $47 million in funding, a dramatic increase from $7.5 million in the same period the previous year. This surge signals growing investor confidence in digital insurance solutions.

However, the Sharia insurance segment faces unique challenges. A 2014 OJK mandate required conventional insurers to spin off their Sharia units into independent entities by 2024. As of 2020, 78% of Sharia insurance business units had yet to complete the spin-off due to concerns over profitability and structural changes.

This regulatory shift has left the Sharia insurance market fragmented, with no clear leader post-spin-off. This presents an opportunity for Wakalahmu to establish itself as a key player by combining ethical Sharia principles with innovative technology.