Impact of Sharia Financing Life Insurance Products on Sharia Banking Performance and Sharia Insurance Industry

Sharia Financing Life Insurance is an insurance that must be followed by every participant related to financing in a financing transaction in sharia banking and Sharia People's Financing Bank to anticipate the occurrence of non-performing financing caused by the customer's death due to illness or accident. However, the high claims of Sharia financing life insurance since 2016-2020 have resulted in an increase in claim reserves and high reinsurance premiums for sharia financing life insurance products as the background for writing this article. The research method used is a comparative phenomenon method by comparing factual phenomena to the variables studied. The impact of sharia financing life insurance products on the performance of Islamic Banking and Rural Banks has a positive impact, as evidenced by the increased claim payments from 2016-2020 and the relatively small non-performing bank loans, but had a negative impact on Sharia Insurance and Reinsurance. the increase in claims reserves and high reinsurance rates will burden customers. We advise Sharia Insurance companies that experience losses to temporarily stop selling these products with Shifting Business or carry out risk selection on age and occupation, while Sharia Insurance Companies that have a good Loss Ratio can apply stop losses the business if claim above 70% for more safety.