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Prudential plc (LSE:PRU) has announced a strategic long-term bancassurance partnership with Bank Syariah Indonesia (BSI), which will see Prudential become the designated Syariah life insurance provider for BSI starting in early 2025. This collaboration allows BSI to market, promote, and distribute Prudential’s insurance products to its extensive customer base.
As the largest Syariah bank in Indonesia and the sixth-largest bank in the country by assets, BSI stands out in the financial landscape, boasting over 20 million customers and more than 1,000 branches nationwide. Given that approximately 84% of Indonesia’s population of 280 million identifies as Islamic, the partnership taps into a substantial and growing market for Syariah-compliant financial services.
This alliance represents a pivotal shift for Prudential’s operations in Indonesia, which have traditionally relied heavily on the agency distribution channel. By entering into this bancassurance arrangement, Prudential aims to broaden its reach and enhance its market presence in the rapidly expanding bancassurance sector. Additionally, it allows Prudential to deepen its involvement in the under-penetrated Syariah market, providing an opportunity to offer tailored financial solutions to meet the needs of Indonesia's predominantly Muslim population.
