Assesment Financing Insurance, Whether the Bank Carry Out its Own Insurance or Use an Insurance Company

BUR Sharia, serving families aspiring to prosperity, offers financial services such as the BUR Sharia Financing Group Loan, specifically designed to empower women.To guard against loan repayment failures due to customer mortality, BUR Sharia currently collaborates with an insurance vendor, with the bank covering the insurance premiums, thus protecting both customers and the institution.In the context of slowing macroeconomic growth and intense competition, BUR Sharia is compelled to enhance its operational efficiency.BUR Sharia must operate more effectively.Hence, it is assessing the possibility of using its own funds to cover the risk of customer defaults due to death and providing compensation in the event of a customer's spouse's death while still considering prudence and regulatory compliance by contemplating cost reductions without compromising the quality of service to its customers.This study aims to assist in evaluating the bank's decision on whether it is better to use its own funds or to employ life insurance services to manage or bear the risk of customer defaults due to death and to investigate the advantages and challenges that will arise.This research employs a qualitative methodology, including interviews with heads of projects.Leaders and senior experts, followed by analysis using Cost & Benefit methods and SWOT analysis.