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There are allegations of “fraud”, Astra Life reports unscrupulous insurance agents to the police
JAKARTA, KOMPAS.com – PT Asuransi Jiwa Astra (Astra Life) has conducted research and verified agent and customer documents regarding Astra Life customer complaints.
President Director of Astra Life Windawati Tjahjadi explained, this started with complaints from 24 Astra Life customers in East Java who said they did not receive the policy.
The customer then requests the return of all insurance premiums paid to Astra Life.
From this report, Astra Life has conducted searches and verifications related to the documents of 24 customers.
Based on the data obtained, Astra Life confirmed that it had sent the policy to the customer in question, but there were allegations of fraud committed by unscrupulous agents.
“Therefore, Astra Life through its attorney Otto Hasibuan from the law office of Otto Hasibuan & Associates, has reported this case to the Indonesian National Police on January 18, 2023,” he said in a press release, Friday (20/1/2023).
Windawati said, since its establishment in 2014, a case like this had never happened.
Astra Life sees that fraudulent practices can have a negative impact on public trust in the life insurance industry in Indonesia.
“There needs to be strict action regarding the alleged fraud,” he added. The steps taken must be in line with the rules set by the Financial Services Authority (OJK) to prioritize aspects of customer protection.
He explained, Astra Life has been trying to provide products and services to customers and run a business with the principles of good corporate governance (GCG). “In accordance with applicable laws and regulations,” he said.
Boss Generali Calls the Value of Early Disbursement of the Policy Stable
Bisnis.com, JAKARTA – The life insurance company PT Asuransi Jiwa Generali Indonesia said that the surrender value or early disbursement before the expiration of the policy or partial withdrawal in 2022 is still stable compared to previous years.
Nevertheless, Generali Indonesia does not deny that there are still customer policies that surrender or cancel policies, especially single premium unit-linked (SPUL) policies that are due. Likewise for the regular premium unit-linked (RPUL) policy, but there was no significant increase.
“The numbers themselves are still likely not much different from the surrenders that occurred in previous years,” Generali Indonesia’s Chief Executive Officer (CEO) Edy Tuhirman told Bisnis, Wednesday (25/1/2023).
Referring to the third quarter/2022 data, Edy said that Generali was still showing quite good performance, reflected in the acquisition of premiums which were recorded at more than IDR 2.2 trillion. In addition, the company’s continued premium also grew 3 percent on an annual basis (year-on-year/yoy).
“In the future, we hope that people can be wiser if they want to make a decision to surrender or cancel a policy, because given the potential risks there will always be and the need for insurance protection is still very much needed to protect against risks that might occur,” he said.
This year, Edy is optimistic that surrender claims will tend to be smaller because people are increasingly aware of the importance of protection. In addition, Edy added, referring to data from the Indonesian Life Insurance Association (AAJI) in the third quarter of 2022, the number of health claims by industry was 35.1 percent.
“This means that there is a growing public demand for insurance protection. In addition, the growing need for insurance is also evidenced by the growing number of insureds industrially, which grew 28 percent in the third quarter of 2022,” he continued.
As for anticipating a surge in surrender claims in 2023, Edy said that Generali Indonesia had conducted a lot of education related to the importance of insurance amid risks that were still high, from the sales aspect of innovation in terms of products for various customer segments and simplification of the purchasing process.
Meanwhile, from the product side, his party has also prepared a product strategy in accordance with developments in protection needs in each segment, both conventional and sharia.
These efforts are made so that the public has access to insurance amid the risks that are currently still high, for both defined benefit and unit-linked products.
“Through this multi-channel and multi-product strategy, it is hoped that it can accommodate the increasing needs of the community for protection,” he concluded.
Here are the provisions for the Sharia Unit Spin Off for Insurance Companies in the PPSK Law
Bisnis.com, JAKARTA— The Indonesian Sharia Insurance Association (AASI) highlighted Law Number 4 of 2023 concerning the Development and Strengthening of the Financial Sector or the PPSK Law.
Article 87 Chapter IV concerning Insurance of the PPSK Law regulates the separation of sharia units or spin off insurance companies.
“In the case of an insurance company or reinsurance company having a sharia unit, after fulfilling certain requirements stipulated by the Financial Services Authority, the said insurance company or reinsurance company is required to separate the sharia unit into a sharia insurance company or a sharia reinsurance company,” citing Paragraph 1 of Article 87 .
Then Paragraph 3 of Article 87 explains that further provisions regarding separation are regulated in the Financial Services Authority (POJK) regulations which have been consulted with the DPR.
When compared to Article 87 of Law Number 40 of 2014 there is not too much difference. Where the article reads, “In the event that an insurance company or reinsurance company has a sharia unit with the value of the Tabarru Fund’ and the participant’s investment funds have reached at least 50 percent of the total value of the Insurance Fund, the Tabarru Fund’, and the participant’s investment funds in the parent company or 10 years since the promulgation of this Law, the insurance company or reinsurance company is obliged to carry out the separation of the sharia unit to become a sharia insurance company or sharia reinsurance company.”
Executive Director of the Indonesian Sharia Insurance Association (AASI) Erwin Noekman said that in principle there was no change regarding the separation of sharia units in Law 40/2014 with the PPSK Law. Provisions for unit separation are also regulated in POJK 67/2016 concerning Business and Institutional Licensing of Insurance Companies, Sharia Insurance Companies, Reinsurance Companies, and Sharia Reinsurance Companies.
“This [Law No. 4 of 2023] AASI considers as an affirmation regarding the old rules. Everything can change if there are changes in the POJK. So to this day the rules for separating sharia units are clear,” Erwin told Bisnis, Wednesday (25/1/2023).
Furthermore, in POJK 67/2016, the separation of sharia units is carried out if the Tabarru’ Fund and the participant’s investment funds have reached at least 50 percent of the total value of the Insurance Fund, Tabarru’ Fund, and the participant’s investment funds in their parent company.
Second, 10 years since the promulgation of Law Number 40 of 2014 concerning Insurance, namely on October 17, 2024.
Erwin said there was still no urgency to change the regulation. He also expressed gratitude for Law Number 4 of 2023 which continues to emphasize the obligation to separate sharia units in insurance.
“Both Law Number 40 of 2014 and Law Number 40 of 2023, both of them still require the separation of sharia units,” he said. Erwin also reminded all AASI Members to comply with applicable legal provisions, and carry out all work programs as submitted in the Sharia Unit Separation Work Plan (RKPUS) which had been approved at the General Meeting of Shareholders (GMS) of each company.
“Should there be changes in the RKPUS, of course we remind all members to first obtain approval at the GMS, and then submit it to the Financial Services Authority [if approved],” he said.
AASI is ready to assist all sharia units, both those establishing new companies and those planning to transfer their portfolios to other sharia insurance companies.
“AASI reaffirms its commitment to assist OJK when needed to facilitate the implementation of the RKPUS in each AASI Member, both those who will establish and those who will make transfers. Furthermore, AASI is willing to be a “match maker” among stakeholders,” he said.
Financial Crime, OJK Investigators Submit 20 Cases to be Submitted to Court
Bisnis.com, JAKARTA – The Financial Services Authority (OJK) noted that it had submitted 20 cases to the prosecutor regarding financial sector crimes.
Darmansyah, Director of Public Relations of the OJK, explained that the case being investigated by the OJK had been declared complete by the Public Prosecutor (P-21) and had been followed by the surrender of the suspects and evidence.
“Of the 20 cases, 18 were in the banking sector and two in the non-bank financial industry (IKNB) sector,” said Darmansyah in a written statement, Wednesday (25/1/2023).
He said, by submitting it to the Prosecutor as a prosecutor, the total financial cases completed by OJK investigators since 2014 reached 99 cases. In detail, 78 cases were in the banking sector, five cases in the capital market and 16 cases in the IKNB.
There are 17 investigators at OJK, consisting of 12 police investigators and five civil servant investigators. “With these steps to strengthen and enforce the law, OJK is optimistic that financial system stability can be maintained, especially in anticipating increased external risks and further encouraging national economic recovery,” he said further.
As is well known, future financial sector crimes will be fully handled by the OJK as the Law on the Development and Strengthening of the Financial Sector (UU PPSK) is passed.
This is stated in article 49 of the latest regulation on the financial sector “Investigations into criminal acts in the financial services sector can only be carried out by investigators from the Financial Services Authority,” reads article 49 paragraph 5 in the PPSK Law.
Get to know “Bridge Bank”, How IFG Handles Default Cases in the Insurance Industry
JAKARTA, KOMPAS.com – The BUMN holding insurance, guarantee and investment Indonesia Financial Group (IFG) handles default cases in the Non-Bank Financial Industry (IKNB) through a bridge bank mechanism.
The Main Commissioner of IFG and Fauzi Ichsan said that the instruments for rescuing financial institutions that had failed were actually completely available in the banking industry.
For example, after the monetary crisis in the 1997-1998 era which was marked by a number of banks being declared bankrupt and mass withdrawals (rush money) occurred, the Indonesian financial system began to improve with the presence of the Deposit Insurance Corporation (LPS).
“The institution is equipped with a number of failed bank resolution instruments, including a liquidation mechanism, temporary equity participation (PMS), purchase & assumption options, and temporary transfer options through a bridge bank,” said this senior economist in a press release, Sunday (22/1 /2023)
Fauzi continued, the insurance industry has never experienced a similar crisis. Policyholders also cannot withdraw their money in droves because it cannot be done contractually. This has caused many insurance companies to have minimal capital, but are still allowed to operate.
On the other hand, Fauzi explained, the insurance industry also does not have an institution similar to LPS which is the final guard for solutions for failed insurance companies.
“In the absence of a resolution authority in the insurance industry as well as rescue options that can handle cases of failed insurance companies, like it or not, IKNB must reflect on the banking industry. The resolution with the bridge bank option has been done by IFG in dealing with failed insurance companies,” he said.
Fauzi, who was also the Chief Executive of the LPS, explained that the handling of failed insurance companies using a bridge bank mechanism divided the insurance company into two parts.
Borrowing a term from the banking industry, the first part is the original bank that failed, which is called a bad bank and will be liquidated later.
The second is a good bank, which is newly formed to accept sound assets and liabilities with the highest legal status from the original bank. For information, in the bridge bank solution in deposit banking, customers of origin banks that fail are not restructured or discounted.
Meanwhile, policies and liabilities from insurance companies that fail to be restructured before being transferred to a good bank. “This option reduces the burden of injecting fresh capital into good banks,” he added. According to him, through the healthy transfer of assets and liabilities, other restructuring options can be opened.
These options include state equity participation (PMN), inviting strategic investors, even later issuing an initial public offering (IPO). With the bridge bank resolution option, the cost of rescuing a failed bank or insurance company becomes cheaper, including the costs that must be borne by the state.
In addition, this resolution guarantees the continuity of added value for policyholders and their business is sustainable. “IFG’s experience in implementing bank bridge resolutions for the insurance industry is a new resolution method in the global financial world. There has never been a failed insurance company that has been rescued through the bridge bank method,” he said.
Starting 2023, Allianz Focuses on Strengthening the Digitalization of Agency and Bancassurance Channels
KONTAN.CO.ID – JAKARTA. Starting in 2023, PT Asuransi Allianz Life Indonesia (Allianz Life Indonesia) plans to optimize the digital ecosystem for marketers both on the banccasurance and agency channels.
Country Manager & Main Director of Allianz Life Indonesia David Nolan sees that the role of marketers is very important in supporting Allianz Indonesia’s business growth.
Therefore, David said that his party focuses on optimizing the digital ecosystem for the convenience of marketers and customers, developing and improving the quality of solutions and services, team empowerment, and financial literacy that supports efforts to increase insurance inclusion and penetration in Indonesia.
“With the cooperation and support of marketers, Allianz Indonesia will continue to provide protection according to customer needs,” he said in an official statement, Thursday (26/1).
Allianz Life Indonesia is currently supported by more than 40,000 business partners who contribute from agency distribution channels.
In the last 4 years, David said these agents consistently posted good performance and recorded a market share growth of 53%.
The use of digital ecosystems also continues to increase and is well utilized by marketers to provide services to customers.
Until the end of 2022, the use of the Allianz Discover digital sales tool to submit insurance policies has reached 99% of all submissions.
On the other hand, Bancassurance Allianz Life Indonesia recorded good market share growth in 2022, with 8% market share. This performance is supported by the synergy that exists between Allianz Life Indonesia and 14 banking partners.
The use of the digital ecosystem provided by Allianz Life Indonesia for Bancassurance marketers has also experienced a significant increase, where almost 100% of insurance policy applications are done digitally, and digital policy issuance accounts for 73% of all new policies.
Nonetheless, Allianz Life Indonesia’s Business Director Bianto Surodjo emphasized that the marketing staff for the Bancassurance distribution channel must be able to provide appropriate product descriptions and suit customer needs.
He explained that the training system provided by Allianz Life Indonesia was structured starting from before work with intensive training, in the form of 1 month full-day training and 3 months of on-the-field training along with assistance, up to on-the-job training. “With a variety of training tailored to business needs, as well as individual needs,” he concluded.
Airasia Ride Indonesia Partners with Jasa Raharja to Provide Insurance for Passengers
KONTAN.CO.ID – JAKARTA. PT Airasia Super App Indonesia inaugurated its partnership with PT Jasa Raharja to provide insurance protection for general passengers and airasia ride Indonesia drivers.
This partnership was summarized in the signing of the Cooperation Agreement “Management of Compulsory Fees and Passenger Accident Coverage for Special Rental Transportation Services” which took place at the Jasa Raharja Office, Denpasar, Bali.
Airasia Super App Group Head of Delivery Lim Ben-Jie said that this collaboration was carried out as a step to place the safety of users and drivers as a priority.
He added that this partnership has also amplified long-term efforts to always adapt to local conditions, both in terms of user needs and government regulations.
“We believe there will be other partnerships with Jasa Raharja in the future, in line with Airasia Ride’s projection to continue to expand to other areas or cities,” he said in an official statement, Thursday (25/1).
For information, Airasia Ride has been paved in Indonesia since November 2022, starting its journey in the province of Bali. Currently, Airasia Ride services are also available in Malaysia and Thailand.
PT Jasa Raharja Teguh Afrianto, Department Head of Obligatory Premium, added that this collaboration is aimed at both the safety of the people who use special charter transportation, or in this case e-hailing.
“We appreciate Airasia Ride Indonesia as the applicator who has fulfilled the elements of licensing and safety,” he added.
Teguh explained that Jasa Raharja would later provide basic protection for airasia ride Indonesia passengers and drivers, in accordance with the provisions of Law no. 33 of 1964 with the amount of compensation as stipulated in the Regulation of the Minister of Finance of the Republic of Indonesia No. 15/PMK/2017 dated 13 February 2017 concerning “Amount of Compensation and Compulsory Contribution of Compulsory Accident Coverage for Passengers of Public Passenger Transportation Equipment on Land, Rivers/Lakes, Ferries/Crosses, Sea and Air”.
This information is presented by L&G Insurance Broker – The Smart Insurance Broker
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