Liga Asuransi – Dear readers, how are you? It doesn’t realize that we have entered the end of 2022. Time flies so fast. As usual, we will always present 7 selected news about the Indonesian insurance industry. We hope this news will be useful for you. If you are interested please share with your colleagues so they also understand like you.
- Pushing the Acceleration of the Sharia Life Insurance Industry, AASI Creates a
KONTAN.CO.ID Guide – JAKARTA. The Indonesian Sharia Insurance Association (AASI) launched a blueprint for sharia life insurance. This document will serve as a guide for all stakeholders in developing, empowering, and overcoming various obstacles to the sharia life insurance industry in Indonesia.
In addition, AASI intends to provide guidelines that can be utilized by all stakeholders to accelerate the progress of sharia life insurance through their respective roles so that more and more Indonesian people are protected.
Understandably, currently the penetration of insurance in general, including Islamic insurance in Indonesia is quite low when compared to other countries.
The Kadence International 2020 survey explained, even though the Muslim population is the largest in the world, many Muslim populations in Indonesia still choose conventional life insurance at 26%, compared to Islamic life insurance at 12%. Meanwhile, another 61% of Muslims said they did not have insurance.
Chairman of AASI, Tatang Nurhidayat said, challenges in the sharia insurance industry include literacy, distribution channels, lack of variety of products and services, to determinants such as policies or regulations that still need to be strengthened.
“There are still quite a lot of tasks or homework for sharia insurance to complete. That’s why we launched this Blueprint document,” Tatang said in Jakarta, Thursday (1/12).
Tatang said, this document serves as a guide for strategic planning in order to advance the sharia life insurance industry as one of the pillars of the nation’s economy.
Meanwhile, Yoga Prasetyo’s Sharia Life Insurance Blueprint Task Force explained, this document has three important pillars of focus. First, communicating the values of sharia life insurance and building trust.
Second, improve and develop ways of working. Third, innovate in products, business and distribution.
Furthermore, Yoga said, the blueprint for sharia life insurance in Indonesia could be implemented according to the 2022-2028 timeframe.
“Let’s work hand in hand to promote sharia life insurance in Indonesia,” he added.
Quoting this sharia life insurance blueprint document, this document is expected to increase Indonesian people’s literacy on the importance of sharia life insurance.
For the sharia life insurance industry, it is expected to be able to explore various potentials for increasing business and meeting community needs through product and service innovation.
In addition, for regulators and the government, this document is expected to support the industry to become stronger and more independent through spin-off and innovation policies.
- Jiwasraya’s Liabilities Transferred to IFG Life Reach IDR 29.3 Trillion
KONTAN.CO.ID – JAKARTA. The process of transferring liabilities from Jiwasraya to PT Asuransi Jiwa IFG (IFG Life) is still not complete.
As of October 2022, IFG Life has received total liabilities from Jiwasraya of IDR 29.3 trillion.
IFG Life Plh Corporate Secretary Gatot Haryadi said, this value is 88.7% of Jiwasraya’s total liabilities which have obtained OJK permit Number S-387/NB.2/2021. Meanwhile, the number of policies reached 157,256 policies.
Gatot added, in November 2022, OJK had also issued permits for the transfer of policy numbers: S-243/NB.2/2022 for 351 policies with a liability value as of August 2022 of IDR 1.17 trillion.
“This was not included in the transfer permit from the previous OJK,” he told Kontan.co.id, recently.
On the other hand, Gatot also said, IFG Life has received assets of IDR 7.7 trillion or the equivalent of 67.7% of the total assets that have obtained OJK permit Number S-387/NB.2/2021.
“IFG Life, as a company that has received a restructuring policy mandate from Jiwasraya, continues to strive for the process of transferring the policies of former Jiwasraya customers to run smoothly and in accordance with applicable regulations,” Gatot explained.
In addition, IFG Life has also made claims benefit payments of IDR 5.03 trillion to several policies which were the result of the Jiwasraya transfer.
To ensure the company has the ability to pay other claims, Gatot emphasized that IFG Life has a solvency ratio (RBC) above the minimum limit of 120%. As of October 2022, IFG Life recorded RBC at 214.90%.
- Haunting Recession, Here’s Zurich’s Boss’ Forecast about the RI Insurance Industry
Bisnis.com, JAKARTA — PT Zurich Asuransi Indonesia Tbk. are optimistic that the insurance industry will continue to grow next year despite the haunting global recession sentiment and the potential to hamper the pace of the Indonesian economy.
President Director of Zurich Asuransi Indonesia Edhi Tjahja Negara said the government had projected Indonesia’s economic growth next year would be at 5 percent. In line with this figure, the insurance industry will still grow because domestic activities have now returned to normal.
“The potential for a recession that will occur next year will not have a very significant impact on Indonesia, because this sentiment will have more of an impact on countries that do have large exports. While Indonesia’s exports are not that big and most of them export energy and the like, these exports are still good,” said Edhi during a press conference, Wednesday (30/11).
Then, the industry is currently having new market opportunities, namely e-commerce. Edhi sees that the e-commerce market for the insurance industry is currently experiencing rapid growth so that in the future this e-commerce also has the potential to become a positive catalyst for the growth of the insurance industry.
“Going forward, we are still optimistic with the insurance industry that there is potential for double-digit growth,” he said.
Asia Pacific CEO & Member of the Zurich Insurance Group Group Executive Committee Tulsi Naidu added, Indonesia is a big market for the Zurich Group. If you look at the past 5 years, market growth in Indonesia is quite large and has a strong position in Asia Pacific.
“In the long term, market growth in Indonesia is still very strong. Indonesia also has a very good profile in the insurance industry,” said Tulsi.
In line with optimism for next year, Zurich is also committed to increasing the financial literacy of the Indonesian people, especially the millennial generation. This commitment is channeled through collaboration with an educational platform called Inspigo.
In the midst of the development of this digital era, financial literacy is very important, especially for millennials. The reason is, by having good financial literacy, the wishes or dreams that they want to achieve can be achieved better.
Meanwhile, through collaboration with the educational platform Inspigo, Zurich wants to present a fresh face of insurance that is relevant to the spirit and values of the good young generation.
Zurich considers that collaboration can provide a lot of value to people’s lives and have a real positive impact on the community. Zurich wants to help young people become more resilient to dare to realize their full potential and create a brighter future.
- Boosting Business in RI, Insurance Company from South Korea Collaborates with Lippo
Jakarta – Insurance company from South Korea, Hanwha Life Insurance Co. Ltd has signed a memorandum of understanding (MoU) with Lippo Group on 16 November 2022 at World Trade Center 1, Jakarta. The signing of this MoU will expand the collaboration between Hanwha Group and Lippo Group.
The signing of the MoU was carried out by CEO of Hanwha Life Insurance Co., Ltd., Yeo Seung Joo and CEO of PT Multipolar Tbk, Adrian Suherman, witnessed by CEO of PT Hanwha Life Insurance Indonesia, Steven Namkoong together with President Commissioner of PT Lippo General Insurance Tbk, Felix Ali Chendra, as well as the management of Hanwha Life and Lippo Group.
The signing of the Hanwha Life and Lippo Group MoU was one of the agendas during the visit of the CEO of Hanwha Life Korea to Indonesia. Previously, on November 13-14 2022, CEO Yeo Seung Joo attended the B20 Forum, part of the G20 Summit series of events in Bali. He also took part in the Korea-Indonesia Business Roundtable meeting with Indonesian President Joko Widodo and South Korean President Yoon Suk Yeol.
“Hanwha Life is the first Korean insurance company to enter Indonesia. As a group, we have a big commitment to Indonesia. Through the signing of this MoU, Hanwha Life and Lippo Group are committed to pioneering a future together in Indonesia, as well as opening opportunities for cooperation in various sectors other than insurance, for example in the financial sector (digital banking, asset management, etc.), digital technology and health,” said Yeo Seung Joo in a written statement, Monday (28/11/2022).
“Cooperation with Lippo Group will bring Hanwha Life to grow stronger in Indonesia. With the spirit of Add Value, Build Dream and Lead Culture, Hanwha Life Indonesia is ready to become No.1 InsurTech in business competence,” said the CEO of PT Hanwha Life Insurance Indonesia, Steven Namkoong in a written statement.
Hanwha Life Insurance Co., Ltd is the second largest life insurance company in Korea, with assets of IDR 1,881 trillion (163.6 trillion won) in 2021. Its subsidiary, PT Hanwha Life Insurance Indonesia, is registered and supervised by the Financial Services Authority (OJK) since October 24 2013, with assets of IDR 2.06 trillion in the third quarter of 2022.
Hanwha Life is part of the Hanwha Group, the 7th largest conglomerate (chaebol) group in Korea with 70 years of experience. In 2021, the total assets of the Hanwha Group will be over IDR 2,500 trillion (224.6 trillion won). Hanwha Group, a Fortune Global 500 (Rank 306 in 2022) and Forbes Global 2000 (Rank 708 in 2022) companies, is a global leader in the petrochemical, aerospace, renewable energy, security technology, construction, property, hospitality & leisure industries , as well as financial.
Currently, Hanwha Group is also in the process of acquiring a 62.6% stake in PT Lippo General Insurance Tbk, the Lippo Group’s insurance business. Meanwhile, until November 28 2022, the acquisition process is still in the process of OJK approval.
Meanwhile, PT Multipolar Tbk is part of the Lippo Group, one of the largest conglomerate groups from Indonesia in Asia with the most diverse business diversification. Lippo Group operates in various sectors, such as property, retail, hospitality & leisure, health, education, media, telecommunications, electronics, finance and digital technology.
“The signing of this collaboration is a start for Hanwha Life and Lippo Group to jointly seize enormous opportunities in the future.” said the CEO of PT Multipolar Tbk, Adrian Suherman in a written statement.
- Zurich Indonesia Ready to Capture Potential Electric Vehicle Insurance Next Year
JAKARTA, KOMPAS.com – PT Asuransi Zurich Indonesia Tbk (ZAI) says it’s ready to capture potential electric vehicles or electric vehicles (EV) next year.
President Director of Zurich Indonesia Insurance, Edhi Tjahja Negara, said that his party would continue to monitor the growth in the need for electric vehicle protection.
“For electric vehicles, we are moving forward. Global has also started. We are also preparing internal capabilities,” he said in a limited discussion with the media, Wednesday (30/11/2022).
He explained that currently Zurich Indonesia has as many as 80 units of electric vehicles in its protection portfolio.
“We are still pushing, we have subject matter experts (SME) to push,” he said.
Subject Matter Expert (SME) is a person who is an expert and has mastered a particular field so that he becomes a source of information and a reference for others.
Edhi is sure that next year the growth in electric vehicle protection will be in line with the electric vehicle market itself.
Regarding the new regulations issued by the Financial Services Authority (OJK), his party will follow these regulations.
Also, before the regulations from the OJK were issued, Zurich Indonesia had previously established communication with associations and regulators.
“There have been talks at the association, so we are also involved,” he said. For information, in the insurance sector, OJK provides incentives by setting premium rates or contributions that can be set at rates that are lower than the lower limit.
This is regulated in the Financial Services Authority Circular Letter Number 6/SEOJK.05/2017 concerning Stipulation of Premium Rates or Contributions to the 2017 Property Insurance and Motor Vehicle Insurance Business Lines (SEOJK 6/2017). This incentive in the insurance sector is valid until 31 December 2023.
- This is the “Trade Credit” Insurance Facility for Exporters
JAKARTA, KOMPAS.com – The Indonesian Export Financing Agency (LPEI) or Indonesia Eximbank continues to be committed to serving the needs of exporters in order to ensure the sustainability of Indonesian exports through its four mandates, namely Financing, Guarantees, Insurance and Consulting Services .
Currently, the challenges faced by business people in Indonesia to build and grow a business in a sustainable manner are increasingly severe. Geopolitical challenges and the impact of the trade war must continue to be considered and anticipated by business actors.
LPEI Business Development Executive Director Maqin U. Norhadi said, one of the forms of this commitment is manifested through the Trade Credit Insurance insurance product facility with a focus on providing a sense of security and protection for Indonesian exporters in exporting.
“Through Trade Credit Insurance, LPEI provides compensation to Indonesian exporters against possible risks of loss due to non-receipt of payment from the buyer or the bank opening the L/C due to commercial risks and political risks in the buyer’s country,” explained Maqin in his official statement, Wednesday (30 /11/2022).
The risk of loss can be caused by commercial risk where the buyer experiences cash flow difficulties and/or political risk due to political turmoil in the buyer’s country so that invoice payments are in arrears or not paid at all.
Maqin explained, this insurance facility is a manifestation of the Government’s role through LPEI to assist Indonesian exporters in increasing the confidence level of carrying out export activities, implementing risk management, expanding into international markets, and increasing competitiveness at a very competitive global level.
In 2021, LPEI reached an outstanding coverage value of IDR 10.9 trillion, an increase of 34.56 percent from the previous year’s period (2020).
In addition, LPEI’s Trade Credit Insurance in the 2021 period has contributed to supporting Indonesia’s export activities by providing protection for export transactions to 637 buyers spread across 73 countries, including Japan, the United States, Singapore, China, Thailand, Malaysia, Australia, Germany , Bahrain, Kuwait, Spain, Pakistan, Nigeria, Senegal, Cameroon, Ivory Coast, to Egypt.
Maqin added, during the Covid-19 pandemic until now, LPEI has remained consistent in providing protection to existing insureds from various sectors in an effort to maintain LPEI’s mandate to increase national exports.
He said LPEI is still trying to maintain the Trade Credit Insurance insurance facility that has been provided to exporters by conducting periodic monitoring of transactions and political conditions in the buyer’s country.
“We will continue to maintain relations with Indonesian exporters by not leaving exporters who used the LPEI insurance facility before the pandemic,” he said.
As an effort to encourage the SME sector to be export-oriented, LPEI will continue to provide insurance awareness of the benefits of LPEI export insurance to mitigate risks of export transactions conducted by SMEs.
In addition, another benefit emphasized is increasing the level of banking confidence so as to make SMEs bankable in order to obtain financing facilities. “We hope that with LPEI’s export insurance products, SMEs can penetrate new markets and be more comfortable doing transactions with buyers,” concluded Maqin.
For information, business actors who wish to obtain further information regarding LPEI export insurance products can contact the Head Office, Regional Offices, or the LPEI website.
- Insurance Digitization, Solutions to Increase Penetration of Life Insurance in Indonesia
KOMPAS.com – Even though the world community is facing an economic slowdown and rising inflation due to the Covid-19 pandemic, the interest of Indonesian people in life insurance products is actually increasing.
The Indonesian Life Insurance Association (AAJI) in a Press Release on the Performance of the Life Insurance Industry for the First Semester of 2022 stated that the total group of insureds reached 51.96 million people, an increase of 23.7 percent on an annual basis. Then, the total individual insured is 21.94 million people.
This figure is up 9.5 percent on an annual basis. Chairman of the Board of Directors of AAJI Budi Tampubolon said that the increase in life insurance performance, especially for the individual insured, shows that the Indonesian people are increasingly aware of the urgency of insurance protection as protection and long-term financial planning.
“Regular premium income also grew by 1.3 percent to Rp 49.7 trillion. This indicates that people are increasingly understanding the long-term protection function of life insurance products,” said Budi in a press release received by Kompas.com, Wednesday (23/9/2022).
In addition, the increase in the number of group insureds reflects an increase in demand for insurance protection from business actors to employees indicating that there has been economic improvement in almost all sectors. It also shows that companies are increasingly committed to creating a sustainable business.
This fact is in line with the results of the National Financial Literacy and Inclusion Survey (SNLIK) by the Financial Services Authority (OJK) in 2022 which found that the financial literacy index of the Indonesian people had increased. Its value has now reached 49.68 percent.
Meanwhile, the financial inclusion index was 85.10 percent. That means, knowledge, skills, and beliefs that influence people’s attitudes and behavior in managing finances to achieve prosperity have increased.
So it’s not surprising that the number of individual life insurance insured is now increasing, albeit slightly, namely 8 percent of the total population of Indonesia in the first semester of 2022.
Insurance technology is the solution
. increased penetration of life insurance. This should be pursued through products that are easily accessible.
“Financial literacy must be boosted by education and outreach. This product must also be easily accessible to the public, for example by utilizing digital technology,” said Horas as reported by Kompas.com, Thursday (6/8/2020).
For him, digital technology can become a distribution channel for life insurance products. Moreover, most Indonesian people already use smartphones to access the internet.
The report titled “Digital 2022 Global Overview Report” released by Hootsuite and We Are Social states that internet users in Indonesia reached 204.7 million people or 73.7 percent of the total population in January 2022. This number increased by 2.1 million users or 1 percent when compared to 2021.
The same data source states that almost all internet users or as many as 94.9 percent of them access the internet using smartphones.
Meanwhile, OJK’s Chief Executive for Non-Bank Financial Industry Supervision (IKNB) Ogi Prastomiyono said digital transformation policies in the financial services sector were also one of OJK’s priorities.
According to him, digitization not only helps insurance companies improve customer satisfaction, but also streamlines business operations.
To support the digitization of the life insurance industry, OJK has also issued OJK Regulation Number 13/POJK.02/2018 concerning Digital Financial Innovation in the Financial Services Sector. This regulation contains provisions that cover the supervision and regulation of the digital financial industry.
“OJK encourages the insurance industry to transform in business processes and provide services to consumers by optimizing the use of digital tools,” said Ogi.
Opportunities for growth and government support are a breath of fresh air for the insurance industry to develop business towards digital or insurance technology (insurtech).
The Head of Marketing and Communication of AAJI, Wiroyo Karsono, considers that insurtech can help penetrate insurance into the wider community. Currently, there are 10 insurtechs in Indonesia.
“Insurtech itself initially acted as an aggregator. Then, insurtech collaborated with a number of e-commerce companies, for example Shopee and Tokopedia,” said Wiroyo at a media gathering held in Bandung, West Java, Thursday (30/6/2022).
Meanwhile, economist Poltak Hotradero said that digitalization allows insurance companies to innovate to create insurance products that are more personal to customer needs.
“Insurance companies can provide products and premium costs according to the needs and economic capabilities of customers,” said Poltak in a webinar entitled “How Insurance and Media Survive During the New Normal and Get Ready for 2022”, Tuesday (21/12/2021).
With digital technology, said Poltak, insurance companies can collect complete customer data. This data can be processed to produce customer profile analysis, such as economic capability and insurance protection needs.
Thus, insurance companies can offer products that are right on target. In the end, the penetration of life insurance to the public can increase.
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