With the hike of oil price and depreciating in USD, the inflation of many countries including Indonesia seriously affected. Price of basic consumer goods had been escalating as a result of oil price hike. In this situation, takaful players must be extra careful in accepting new cases especially those with high sum covered. Due diligence must be carried out onto small companies without clear article of association and nature of business. There might be potential corporate clients which setup their companies mainly to benefit from takaful coverage whether life or general via claims. Any irregularities of the company should trigger for comprehensive investigation prior to acceptance.
Investment performance is also seriously affected nowadays. Nevertheless, takaful players should view it as opportunity to make profit by collecting those equities with high potential for growth. New premiums should be invested in selected shares with the highest drop in values. If the company is still operating very well then their shares should be a favourite to investors due to low price. As most life policies are long term in nature thus the investment in equities should be for long term strategy to ensure higher return on investment.
Claims processing also require special attention especially those with shorter duration of policies. Accidental causes need further investigation.
