Empowering Islamic Finance: The Role of Sharia Insurance Education in Indonesia

This study examines the importance of Sharia insurance (takaful) education in fostering the development of the Islamic economy in Indonesia. Despite the country’s significant Muslim population and increasing development in Islamic finance, the penetration of Sharia insurance remains remarkably low. The primary cause of this underperformance lies in limited financial literacy, especially concerning Sharia-compliant financial instruments. Using a qualitative-descriptive approach and an extensive literature review spanning 2020-2024, this research investigates how financial education, both formal and informal, influences public awareness, trust, and the adoption of Sharia-compliant insurance products. Findings indicate that comprehensive and targeted educational interventions significantly enhance individuals’ understanding of takaful, which in turn improves participation and supports broader goals of financial inclusion. Furthermore, Sharia insurance plays a crucial role in providing ethical risk management solutions, supporting economic resilience, and aligning with the principles of Islamic socioeconomic justice. The study recommends integrating Sharia insurance education into national financial literacy programs, utilizing community-based learning models, and utilizing digital platforms for broader outreach. By investing in education, Indonesia can unlock the full potential of its Islamic financial ecosystem and establish a more inclusive, sustainable, and value-driven economy grounded in Sharia principles.