Liga Asuransi – Dear readers, how are you? It’s hard to believe that this week has entered the last week of 2022. As usual, we will always present 7 selected pieces of information for you regarding the world of the Indonesian insurance industry, we hope that this news will be of benefit to you. If you are interested please share with your colleagues so they also understand like you.
- Financial Services and Insurance Become the Third Contributor to Tax Revenue, Reaching 10.9 Percent
Bisnis.com, JAKARTA – The financial services and insurance sector is the third largest contributor to total tax revenue throughout 2022, from January 2022 to December 14, 2022.
Minister of Finance Sri Mulyani Indrawati said that the financial and insurance services sector is the third contributor to tax revenue out of eight industries. Meanwhile, the performance of tax revenues was supported by economic recovery, commodity prices, and the policy mix.
“The financial services and insurance sector contributes 10.9 percent to total tax revenue,” said Minister of Finance Sri Mulyani in a press conference on Our State Budget, quoted Friday (23/12/2022).
This year, Minister of Finance Sri Mulyani revealed that the financial services and insurance sector had recovered compared to last year’s conditions. The reason is, in the 2022 period, the financial services and insurance sector was able to grow 12.1 percent, whereas last year this sector was still slightly contractive, namely by -0.2 percent.
“For the overall performance of the first quarter, second quarter and third quarter, including October and November 2022, the insurance financial services sector grew by double digits above 10 percent. In fact, above 20 percent for November 2022,” he explained.
Seeing this growth, the Minister of Finance concluded that performance in the financial services and insurance sector had shown improvement.
In detail, in the first quarter of 2022, the financial and insurance services sector was able to grow 13.9 percent. Then the second quarter and third quarter of this year, this sector recorded growth of 17.4 percent and 13.5 percent respectively. Furthermore, growth also continued to the position in October 2022 which reached 12.5 percent and grew again to reach 27.8 percent in the November 2022 period
processing industry held the first contributor to tax revenue. This sector was able to contribute 29.2 percent with growth this year reaching 35.1 percent. This figure grew higher compared to last year which only reached 17.5 percent.
Then, the trade sector is the sector with the second largest contribution to tax revenue until December 14, 2022, which has a portion of 23.7 percent of total tax revenue. Meanwhile, this year, the trade sector grew by 44.9 percent, or higher than last year’s growth of 30.5 percent.
- Officially Inaugurated, This Is the Composition of the 2022-2025 Apparindo Central Executive Board
KOMPAS.com – The Central Executive Board of the Association of Indonesian Insurance and Reinsurance Brokerage Companies (Apparindo) for the 2022-2025 period was officially inaugurated on Thursday (22/12/2022) in Jakarta
Based on the acclamation on October 31, 2022, a new Chair of Apparindo has been elected for the 2022-2025 period.
In accordance with the mandate of Apparindo’s AD/ART, currently 44 members of Apparindo’s management have been elected, which includes 7 departments as follows:
- Organizational and Social Department
- Public Relations and Promotion Department
- Department of Inter-Institutional Relations and International Relations
- Legal and Compliance Department
- Engineering Department
- Department of Training and Member Progress
- Department of Statistics, Research and IT
The composition of the Apparindo Board of Directors is as follows:
- General Chair: Yulius Bhayangkara
- Chair I: Boyke Lukman
- Chair II: Primo Fortasiano
- Chair III: Willy Ignatius Sianipar
- Secretary General: Nefertiti Marzuki
- Deputy Secretary General: A. Stanley Soripada
- Treasurer : Sherlyana
- Deputy Treasurer: Handoko Afandy
Meanwhile, the position of Chairman of the Apparindo Honorary Council for the 2022-2025 period is Hari Purwanto. Meanwhile Deputy Chair I Arman Juffry and Deputy Chair II Mashudi and assisted by 6 other members.
While the Supervisory Board has elected Soedarto Jono as Chairman and Kristinan Benny Hapsoro as Deputy Chairperson who is assisted by 3 members of the Supervisory Board.
Apparindo currently has 196 member companies, consisting of 155 Insurance Broker Companies and 41 Reinsurance Broker Companies.
The existence of Apparindo under the umbrella of the Indonesian Insurance Council (DAI), takes an important role in terms of educating and promoting insurance in order to increase the insurance literacy of the Indonesian people, regarding the importance of protecting themselves, their families and their property.
Apparindo Chairperson Yulius Bhayangkara explained the big theme of the current management “We want a bigger portion”, namely Apparindo’s enthusiasm for efforts to get a bigger commercial and economic portion and also get a better position.
“We continue to try and maximize our performance in positioning insurance brokerage companies and reinsurance brokers, to be at the forefront and have an important role in the insurance world, especially the domestic market,” said Yulius, quoted from an official statement, Friday (23/12/2022).
Secretary General of Apparindo Nefertiti Marzuki added, one of Apparindo’s other participations was to increase financial and insurance literacy and education.
“We always play an active role in socializing the insurance industry in Indonesia, with an emphasis on deepening insurance literacy and insurance penetration in Indonesian society,” he said.
- SKK Migas Construction Project Insurance Consortium – KKKS Completes Payment of Claims
KONTAN.CO.ID – JAKARTA. The SKK Migas Construction Project Insurance Consortium – PSC Contractors for the 2014 – 2016 period symbolically paid Insurance Claims of US$19,930,483.00 net of deductible for the tilt of the PHE-12 platform owned by Upstream Holding Pertamina.
Symbolically the submission of claims was carried out by Syah Amondaris, Strategic Business Director of PT Asuransi Jasa Indonesia as Leader of the SKK Migas – PSC Construction Project Insurance Consortium for the 2014-2016 period to Muhammad Arifin as General Manager of Zone 11 Pertamina Hulu Energi WMO.
In his remarks, Jasindo Insurance Strategic Business Director Syah Amondaris stated that the SKK Migas – KKKS Construction Project Insurance Consortium for the 2014 – 2016 period consists of PT Asuransi Jasa Indonesia (Leader), PT Asuransi Tugu Pratama Indonesia Tbk, PT Asuransi Central Asia, PT Asuransi Ekspor Indonesia, PT Asuransi Astra Buana, PT Asuransi Sinar Mas, PT Asuransi Wahana Tata, PT Asuransi Multi Artha Graha, and PT Asuransi Bangun Askrida have completed payment of claims through comprehensive stages such as claim surveys, investigations, verification and clarification of the suitability of the fees submitted. as a claim under the terms of the policy.
Also present at the event were Head of Business Strategy, Risk Management and Taxation Division of SKK Migas Eka Bhayu Setta and VP Financing & Treasury Subholding Upstream Pertamina Villia Sim.
Various related parties from Pertamina Hulu Energi as well as technical consultants, including the Loss Adjuster were involved in the PHE-12 platform insurance claim settlement process.
The payment process itself is carried out by always upholding the principles of professionalism and good corporate governance, in which the Consortium is committed to continuing to provide the best insurance services to upstream oil and gas industry players in Indonesia.
The SKK Migas-KKKS construction project insurance consortium is led by Asuransi Jasindo and consists of eight national insurance companies.
The members of the consortium for the 2020-2022 period are PT Asuransi Tugu Pratama Indonesia Tbk, PT Asuransi Wahana Tata, PT Asuransi Kredit Indonesia, PT Asuransi Astra Buana, PT Asuransi Central Asia, PT Asuransi Jasaraharja Putera, and PT BRI Asuransi Indonesia. Since 2010 until now, the consortium has covered 54 SKK Migas-KKKS construction project insurance, consisting of 39 offshore and 15 onshore.
Meanwhile, SKK MIGAS-KKKS/TAC/JOB industrial asset and well insurance has provided protection by issuing 128 policies for various oil and gas blocks operated by oil companies in Indonesia with a coverage period from 1 June 2021 to 31 May 2023.
- Capital ‘Reh’ Can Get Insurance for Holidays, Can Claim up to IDR 200 Million
Jakarta – For people who want to take a vacation, PT Asuransi Jiwa IFG (IFG Life) has a product to protect themselves and potential risks while traveling. With this insurance, all holiday activities and tours become safer and more comfortable.
IFG Life Chief Marketing Officer Dowi Benedict Teng explained that this is a LifeSAVER product which is IFG Life’s commitment to easy protection products at affordable prices. Dowi explained that people who want to buy this insurance product can buy it online through the Life by IFG application.
He explained that travel activity is a risky activity. The more people who travel, the higher the chance of an accident or unwanted incident. With IDR 49,000, customers can get protection of up to IDR 200 million for serious injuries resulting from accidents or up to IDR 20 million for minor injuries.
“Travellers need to protect their trips with insurance protection,” he said in a written statement, written Friday (23/12/2022).
Dowi added that IFG Life is under the auspices of the Indonesia Financial Group (IFG) as a BUMN holding for Insurance, Guarantees and Investments. IFG Life will apply the principles of Good Corporate Governance (GCG) in carrying out its business activities.
IFG Life is fully supported as part of the IFG Holding and also the BUMN ecosystem. This certainly gives IFG Life an advantage in collaborating and synergizing in future business development. In accordance with its commitment, as of November 2022 the number of policies that have been transferred from Jiwasraya to IFG Life has reached 157,266 policies.
Meanwhile, IFG Life has also paid claims worth IDR 5.2 trillion to policyholders who have switched to IFG Life since December 2021. The policyholders who migrated to IFG Life are former Jiwasraya customers who have agreed to restructuring. IFG Life as of November 2022 has a risk based capital (RBC) of 171.03% so it is classified as a healthy life insurance company.
In its operations, IFG Life will ensure that the policies that have been transferred from Jiwasraya are properly managed with utmost care, including ensuring that benefits are paid in accordance with the terms and conditions stated in each policy.
- Holidays Have Arrived, Keep Protecting Yourself with Insurance
JAKARTA, KOMPAS.com – The end of the year has arrived. Many people take advantage of the end of the year by going on vacation out of town or even abroad.
Chief Marketing Officer of IFG Life Dowi Benedict Teng assessed that travel is a risky activity. Therefore, it is important to keep protecting yourself with insurance during the year-end holidays.
“Travelers need to protect their trips with insurance protection,” he said in an official statement, Friday (23/12/2022).
PT Asuransi Jiwa IFG, he said, has a product that can be used during this holiday season. With this insurance product, people who are on holiday can have protection.
Dowi said the LifeSAVER product is a digital life insurance that can be purchased online by the public through the Life by IFG application. He explained, with a premium of around IDR 49,000, customers can get protection of up to IDR 200 million. Dowi said this was part of IFG Life’s efforts to present a breakthrough in order to compete in the life insurance industry.
IFG Life offers digital-based protection products that can be reached by all levels of society. Under the auspices of the Indonesia Financial Group (IFG) as the holding company for BUMN Insurance, Guarantee and Investment, IFG Life will apply the principles of Good Corporate Governance (GCG) in carrying out its business activities.
IFG Life is fully supported as part of the IFG Holding and also the BUMN ecosystem. This gives IFG Life an advantage in collaborating and synergizing in future business development.
As of November 2022, IFG Life has a risk based capital (RBC) of 171.03 percent. This figure is above the threshold set by the Financial Services Authority (OJK) of 120 percent.
- RI’s Biggest Insurance Case, What’s the Fate of the Customer?
Jakarta, CNBC Indonesia – 2022 will be a year of transition from the Covid-19 pandemic to a new normal. Not only society, but also the business world must be transformed to deal with it.
It cannot be said that this year has been smooth sailing, it has also been full of turmoil, especially in the homeland insurance business. Closing this year, the Financial Services Authority (OJK) revoked the business license of PT Asuransi Jiwa Adisarana Wanaartha (Wanaartha Life/PT WAL) as a Life Insurance Company because the company was unable to comply with the conditions which led to the imposition of a Business Activity Restriction (PKU) sanction.
Sanctions are imposed on WAL due to violations of the minimum solvency level, minimum investment adequacy ratio, and minimum equity that are not in accordance with the provisions of laws and regulations in the field of insurance. Since the revocation of WAL’s business license, Shareholders, Directors, Board of Commissioners and WAL Employees are prohibited from transferring, guaranteeing, pledging or using assets, or taking other actions that can reduce assets or reduce the value of assets of PT Asuransi Jiwa Adisarana Wanaartha.
It is predicted that the fate experienced by WAL will also be experienced by PT Asuransi Jiwa Kresna (Kresna Life). OJK Chief Executive for Non-Bank Financial Industry Supervision (IKNB) Ogi Prastomiyono said that his party assesses that there is still an opportunity for a company like Kresna Life to submit its financial restructuring plan by the end of this year.
Kresna Life has been sanctioned with revoking its business license since March 2021. This is because the PKU sanction for Kresna Life was given on December 7, 2020.
Currently, the OJK has formed a special supervision team for troubled insurance companies. In total, there are 13 insurance companies being supervised, including Kresna Life. In detail, seven companies come from the life insurance industry. Meanwhile, the remaining six companies come from the general insurance industry including reinsurance companies. There are no details from the OJK, but several companies are well known, such as AJB Bumiputera 1912.
On the other hand, some time ago, PT AJB Bumiputera will start paying claims in two stages. . The first phase will be carried out in February 2023 and the second phase will be carried out in February 2024.
Unfortunately, the payment mechanism is still unknown. BPA RM spokesperson, Bagus Irawan, ensured that claim payments went well and were in accordance with applicable regulations.
“The point is that AJB Bumiputera is currently waiting for the RPK which has been perfected and submitted again to OJK RI for approval and ACC,” Bagus said to CNBC Indonesia, Tuesday (6/12/2022).
Referring to POJK 17 of 2017 article 4 paragraph 5b the sanction for Restricting Business Activities (PKU) is a maximum of three months and if the violation is not completed then the sanction for revoking the business license can be carried out.
Kaleidoscope 2022: Steep Road for the Insurance Industry
JAKARTA, KOMPAS.com – The Indonesian insurance industry must go through a steep road throughout 2022. Since the beginning of the year, the insurance industry has been shaken by cases that dragged three insurance companies regarding unit link products.
After this incident, the OJK immediately responded by issuing regulations regarding investment-linked insurance products (PAYDI) or unit-linked.
In addition, many life insurance companies have stumbled on defaults and continue to be under scrutiny. Starting from AJB Bumiputera, Jiwasraya, Kresna Life, to Wanaartha Life.
The following is a list of events related to insurance summarized by Kompas.com in the 2022 Kaleidoscope:
- Unit Link
Dispute Victims of investment-linked insurance products (PAYDI) or unit-linked insurance companies became a hot topic at the beginning of the year.
Unit link insurance victim communities Prudential, AXA Mandiri, and AIA have been recorded as holding several mass actions in front of the Financial Services Authority (OJK) building.
Unit link insurance victim community coordinator Maria Trihartarti has repeatedly asked the OJK to be firm in dealing with this case.
“OJK is an authority. So, use their authority to solve this. OJK should not be afraid of insurance companies. Even though it is the customer’s money that is paid, they should put more weight on consumer protection,” he told Kompas.com.
- Customers encouraged to go to LAPS SJK
Meanwhile, three insurance companies involved in the unit link issue opened their voices regarding the action taken by the insurance victim community.
The three companies that were dragged into the unit-linked insurance product case were Prudential, AXA Mandiri and AIA.
Prudential Indonesia Chief Marketing and Communications Officer Luskito Hambali said that his party had tried to resolve complaints from each individual in the group.
“Prudential Indonesia is committed to solving this problem in accordance with applicable regulations,” he said in his statement, Wednesday (23/3/2022).
He further reminded that the OJK has advised groups that make complaints about unit link products to continue dispute resolution to the Financial Services Sector Alternative Dispute Resolution Institution (LAPS SJK).
In the same vein, AXA Mandiri Compliance Director Rudy Kamdani said that apart from settlement through the LAPS SJK, his party had also resolved a number of customer complaints directly.
“We will obey and implement whatever decision LAPS SJK as an independent dispute resolution institution has in accordance with the law, including if the decision requires premium returns to customers,” Rudi said in a statement, Tuesday (22/3/2022).
Meanwhile, Director of Legal Compliance and Risk of PT AIA Financial Rista Qatrini Manurung also gave a similar response.
“We understand that there are still a number of parties who have not been able to accept the solutions offered. For this reason, in accordance with the advice from the OJK, we have officially announced a unit linked complaint resolution scheme through the LAPS SJK for this customer group,” he said.
- OJK Issues Unit Link Rules The
Financial Services Authority issued Circular Letter of the Financial Services Authority Number 5/SEOJK.05/2022 concerning Insurance Products Linked to Investment (SEOJK PAYDI) or known as unit link, Wednesday (23/3/2022).
At that time, the Chief Executive of the OJK IKNB Supervision, Riswinandi, said that SEOJK PAYDI regulated the implementation of PAYDI by insurance companies and sharia insurance companies, including sharia business units, which took effect on March 14, 2022
. for insurance companies, so that the marketing of PAYDI products or unit link does not cause problems in the future,” he said in a press statement.
He added, SEOJK PAYDI encouraged improvements in three main aspects, namely marketing practices, information transparency, and PAYDI asset management.
He hopes that improvements in marketing practices and information transparency can ensure that PAYDI policyholders truly understand the PAYDI being purchased. This includes insurance benefits, costs and risks borne by the policyholder.
Furthermore, in the marketing process, the company must conduct an assessment of the needs and capabilities of the policyholder, the risk profile of the policyholder, and ensure that the PAYDI purchased is in accordance with the results of the assessment.
In addition, he said the company needed to provide an accurate, clear and complete explanation regarding the PAYDI specifications being marketed. The company also confirms the policyholder’s understanding of the PAYDI purchased.
- Installment Promise to Pay Claims
Member Advisory Board (BPA) AJB Bumiputera 1912 decided to start paying claims to policyholders next year. This was discussed when the BPA AJB Bumiputera 1912 held an extraordinary session (SLB) from 29 November to 1 December 2022.
BPA Bumiputera Spokesperson RM Bagus Irawan said, regarding the payment of AJB Bumiputera 1912 claims, the company will start making payments in the first phase.
“The plan (the first stage) will be carried out in February 2023,” he said in an official statement, Monday (5/12/2022).
He added, BPA had also estimated that the second phase of AJB Bumiputera’s claim payments would be made in February 2024.
- OJK Revokes Wanaartha Life Business License
OJK revoked the business license of PT Asuransi Jiwa Adisarana Wanaartha (Wanaartha Life) on Monday (5/12/2022).
Chief Executive of OJK’s IKNB Supervision Ogi Prastomiyono explained, this revocation was carried out because Wanaartha Life or PT WAL was unable to meet the solvency ratio (risk based capital) set by OJK according to applicable regulations of 120 percent.
“This is because PT WAL is unable to cover the difference in liabilities with assets, either through capital injection by controlling shareholders or inviting investors,” he said in a press conference, Monday (5/12/2022).
Ogi explained, the high difference between liabilities and assets was an accumulation of losses due to the sale of a product similar to a saving plan.
He explained, Wanaartha Life sells products with definite returns that are not matched by the company’s ability to get returns from managing its investments.
In addition, this condition was engineered by Wanaartha Life so that the financial reports submitted to OJK and published financial reports did not match actual conditions.
President Director of Wanaartha Life Adi Yulistanto said, the company is known to only have assets of less than IDR 270 billion. Meanwhile, the company’s total liabilities reached IDR 15.84 trillion.
- OJK Check Savings Plan Insurance Products
OJK will review and conduct a survey of savings plan products offered by insurance companies.
OJK Chief Executive for Non-Bank Financial Industry Supervision (IKNB) Ogi Prastomiyono said that this savings plan product often has problems with a number of insurance companies.
One of them is the case that occurred at PT Asuransi Jiwa Adisarana Wanaartha (Wanaartha Life) and PT Asuransi Jiwasraya (Persero).
Saving Plan is a type of insurance product that offers life insurance for a certain period of time as well as savings or investment benefits that can be disbursed.
- The Migration of Jiwasraya Policy to IFG Life Has Not Been Completed
The process of transferring or migrating the Jiwasraya policy to PT Asuransi Jiwa IFG (IFG Life) has not shown significant progress.
Corporate Secretary of IFG Life Gatot Haryadi said that, until November 2022, there were 157,266 of the Jiwasraya policies that had agreed to the restructuring. Total liabilities from the number of policies were recorded at IDR 30.4 trillion.
“In addition, the company has made claims benefit payments of IDR 5.24 trillion,” he told Kompas.com, Saturday (18/12/2022).
Thus, Gatot revealed, the acquisition of IFG Life’s total assets amounted to IDR 30.32 trillion. This number is not significant when compared to reports on policy migration in semester I-2022.
At that time, IFG Life Director of Finance and Investment Farid Azhar Nasution said, IFG Life had received 157,247 policies until Semester I-2022.
“Meanwhile, the value of the liability is IDR 28.8 trillion or around 87.2 percent,” he said in a press release, Friday (5/8/2022).
From this data it is known that during the third quarter of 2022, the Jiwasraya policy migration process only added 19 policies and the value of its liabilities increased by IDR 1.6 trillion.
Those are the various events that have occurred in the insurance industry throughout 2022. Some predict that the insurance industry will have a lot of potential next year, especially for traditional insurance. This needs to be accompanied by the insurance industry’s efforts to improve and implement good governance.
This information is brought to you by L&G Risk Insurance Broker.
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