Liga Asuransi – Dear Wonderful readers, how are you? In the first week of October, we will meet again in the 5th edition of selected insurance news for October 2022.
Many things have happened in the insurance world this month. Here we write 5 selected news about insurance for you. If you are interested in this article, please share it with your friends so they know about insurance news updates.
- The Policy Guarantee Program Begins To Be Regulated, This Is The Insurance Association
KONTAN.CO.ID – JAKARTA. The policy guarantee program is still a chore in the insurance industry today. This has also begun to be answered with the presence of the Draft Law (RUU) on the Development and Strengthening of the Financial Sector (P2SK).
As is known, the existence of the Policy Guarantee Institution (LPP) is a mandate of Law No. 40 of 2014 which should have been established by the government within 3 years since the law was issued. The P2SK Bill has provided a few detailed points regarding this policy guarantee program by giving a mandate to the Deposit Insurance Corporation (LPS) that runs this program.
One of the points is the payment of the initial membership fee, which is paid by the insurance company once when you first become a participant and the periodic insurance premium which is paid twice a year. However, the bill does not explain further how much the insurance company has to pay and the policy value that will be guaranteed under this program.
“The contribution will be based on the level of risk owned by the insurance company, the higher the risk of the insurance company, the higher the contribution,” said Executive Director of the Indonesian Life Insurance Association (AAJI) Togar Pasaribu to Kontan.co.id, Thursday (6/10).
Meanwhile, Togar also said that even the guaranteed value for the first phase will be smaller than what has been guaranteed by banks at LPS. For information, LPS guarantees bank customer funds of up to Rp 2 billion.
“Over time (the guarantee) will be adjusted to the situation and conditions at that time,” said Togar.
Togar also believes that the costs that will be required to pay the fees also depend on the respective companies. In this case, it could be charged at a premium price or take a portion of the acquisition costs.
Meanwhile, the Chairman of the Indonesian General Insurance Association (AAUI) HSM Widodo did not want to comment much on the number of contributions and guarantees that will be determined by this policy guarantee program. According to him, contributions and guarantees require a more comprehensive actuary calculation with a scientific basis. Thus, it cannot be estimated for its magnitude.
Not only about the contribution and the value of the guarantee, but the points of this policy guarantee program also talk about what protection products cannot be guaranteed by this LPS. For example, insurance products related to investment (unit link) and products whose guarantee value is quite large, but the details are not stated.
Widodo assesses that the unit link product is part of the investment, such as mutual funds managed through a custodial bank. Thus, all gains and losses that may occur are the rights of consumers.
Meanwhile, Togar said that the existence of this policy guarantee institution could at least anticipate the existence of reckless policies. So, the presence of actuarial experts in this institution is needed because they can anticipate the emergence of moral hazards from the perpetrators.
“An example of recklessness, for example, is to attract public interest, a premium program of Rp. 100 thousand per year is made, the sum insured is up to Rp. 10 billion,” he concluded.
- The Kanjurungan Stadium Tragedy Is a Warning of the Importance of Event Liability Insurance
KONTAN.CO.ID – JAKARTA. The Indonesian football world is in mourning after the riots that occurred after the match between Arema and Persebaya at the Kanjuruhan Stadium, Malang, which killed more than 150 people. Insurance companies are also tracking the question of whether spectators in the match get insurance or not.
AAUI Executive Director Bern Dwiyanto also said that his party was investigating whether there was event liability or personal accident insurance in the match.
“Usually it is included in the component of the match ticket,” said Bern to KONTAN, Sunday (2/10).
Bern said that currently, the understanding of self-protection from the organizers of several events in Indonesia is still low. Plus, adding insurance can result in higher ticket prices.
“Ticket prices may be hard to sell if there is additional insurance,” he added.
Therefore, Bern said, the events in the match could be momentum to raise awareness regarding the importance of having personal accident insurance.
He also advised the public to always ensure that events, be it football matches or concerts, are affiliated with an insurance company to provide personal accident insurance products.
“Currently, there are many major sporting events and music concerts that also provide insurance because promoters realize the importance of ownership of such protection,” he said.
- The number continues to shrink, is the presence of an insurance agent still needed?
KONTAN.CO.ID – JAKARTA. The number of insurance marketers from agency channels continues to shrink. Based on data from the Indonesian Life Insurance Association (AAJI) as of Semester I/2022, the number only reached 507,206, down 3.5% from the previous year which reached 525,694.
AAJI Executive Director Togar Pasaribu explained that the decline in the number of agents was caused by many factors, including recruitment of agents which did require a long process, was not easy and required quite a high cost. In addition, the agent’s license validity period which is only two years has expired, and the agent resigns or dies.
According to him, there is a fee for the process of recruiting new marketers, called the business opportunity presentation. Insurance companies gather people to be motivated and invited to become agents.
“Furthermore, training and taking the license exam. For example, out of 10 people who are invited, maybe only three are interested, and usually only one becomes an agent,” Togar told kontan.co.id.
Even though there are digital insurance marketing services, according to Togar, people still need the presence of agents to face to face to get an explanation regarding the insurance products they will buy.
BNI Life Finance Director Eben Eser Nainggolan also admitted that insurance marketing through agency channels until the end of the third quarter of 2022 had not provided a bright spot. Until August 2022, agency channel premium income decreased slightly by 5% compared to the same period last year.
Agency channels also only contributed 3% of the company’s total premium income. As of August 2022, it recorded a premium income of Rp 104 billion from agency distribution.
“However, we believe the role of insurance agents is still very important in the life insurance industry. For agency channel prospects, we see that there is still a very good opportunity for positive growth,” said Eben.
BNI Life also projects that premium income by the end of the year can reach more than Rp 200 billion from the agency’s distribution channel.
To improve the performance of agency channels, his party carried out several strategies including, creating marketing programs to support sales, actively providing ongoing training needed by marketers, and providing marketing support tools both print and digital.
Source : https://keuangan.kontan.co.id/news/nomor-terus-shrinking-apakah-kehadiran-agen-masih-dibutuhkan
- Premiums Still Weak, Life Insurance Industry Income Drops to Rp 105.4 T
Jakarta – The life insurance industry in the first semester of 2022 recorded total revenue of Rp 105.4 trillion. This achievement decreased by 12.3% compared to the same period in 2021 Rp 120.2 trillion.
Chairman of the Management Board of the Indonesian Life Insurance Association (AAJI) Budi Tampubolon said the decline in income was likely due to a decline in premium income, which contributed 90.7% to total revenue.
“However, if we take it further, this achievement is still much better than the industry’s results at the beginning of the pandemic in 2020 (which amounted to Rp. 73 trillion in the first half of 2020),” Budi said at a press conference at his office, Central Jakarta, Tuesday. (6/9/2022).
Based on the data presented, the total premium income of the life insurance industry was recorded at Rp. 95.7 trillion. In general, there was a decrease of 8.9% compared to the same period the previous year.
Even so, premium income from the sharia business, group insurance, and regular payments is said to have recorded growth. On the other hand, the total insured also rose 19.1% to 73.9 million people, consisting of individual insureds to 21.9 million people and group insureds to 52 million people.
“The growth in the total insured but still holding back in premium income, indicates that insurance products marketed in the first semester of 2022 by the life insurance industry have begun to realize the lower middle-class people who want to have insurance protection but with a smaller premium value,” he explained.
Based on the products marketed, the total premium income of the life insurance industry is still dominated by unit-linked life insurance products with a contribution of 59.3%, while the other 40.7% comes from traditional life insurance products.
“Almost 60% of the premium income in semester I-2022 for the life insurance industry still came from unit-linked products. Premium income from unit-linked life insurance products recorded a total premium income of Rp. 56.7 trillion, while traditional life insurance products of Rp. 39 trillion. ,” he added.
- Many layoffs, BPJS Employment JPK Claims Up to Rp. 18 Billion
Bisnis.com, JAKARTA – The Employment Social Security Administration (BPJS) or BP Jamsostek has distributed claims that have been paid in the amount of Rp. 18 billion to employees affected by the termination of employment policy (PHK) by utilizing the program Job Loss Guarantee (JKP).
The Director of Membership of BP Jamsostek Roswita Nilakurnia said that the benefits of the JKP program will be received if the employees affected by the layoff have fulfilled the contribution period (number of months of payment) for 12 months, of which 6 months is in the condition that the contributions have been paid consecutively before the layoff occurs.
“As of the end of September 2022, there were around 4,703 participants who had received JKP benefits in addition to access to the job market and vocational, the total cash benefits paid were around Rp. 18 billion,” Roswita said to Bisnis, Wednesday (5/10/2022)
Roswita explained that Employees affected by layoffs are registered in the full BPJS Employment program and the JKN BPJS Health program, then they can submit a JKP claim after making sure they have fulfilled the JKP membership requirements and the requirements as JKP beneficiaries.
“JKP does not mean that all layoffs will be able to claim JKP because they must meet the requirements for JKP participation and beneficiaries,” he explained.
He added that the JKP program consisted of Cash Benefits for 6 months for access to the job market and vocational (job training). Later, these benefits will be run by BP Jamsostek and the Indonesian Ministry of Manpower.
Then, continued Roswita, the application must have a statement of layoffs from the company which has also been approved by the local Manpower Office (Disnaker).
For information, the JKP program is intended so that victims of layoffs can maintain a decent standard of living when workers lose their jobs. The JKP program provides support for the basic needs of a decent living when there is a risk due to termination of employment while trying to get a job again.
Source : https://finansial.bisnis.com/read/20221005/215/1584669/ramai-phk-klaim-jpk-bpjs-ketenagakerjaan-.
This information is presented by L&G Insurance Broker – The Smart Insurance Broker
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