Liga Asuransi – Wonderful readers, how are you and your business doing? Hopefully in good condition and moving forward. As usual at the beginning of February, we will return to present selected and up-to-date information about insurance news in Indonesia.
Here we have summarized seven news update options for you. If you are interested in this article please share it with your colleagues so that they also understand like you.
List of the 15 Best and Strongest Life Insurance Companies in 2023
Jakarta, CNN Indonesia — CNBC Indonesia Research determined 15 conventional life insurance companies with the best and strongest status in 2023. The ranking was carried out for 51 life insurance companies registered and recognized by the Financial Services Authority (OJK).
This list of life insurance is measured based on total asset ownership using the latest conventional unit financial statements of each company. It is divided into three groups.
First, life insurance companies with assets of more than IDR 20 trillion. Second, life insurance companies with assets between IDR 6 trillion and IDR 20 trillion. Third, life insurance companies with assets between IDR 1-IDR 5 trillion.
CNBC Indonesia Head of Research Muhammad Ma’ruf hopes that this ranking will be able to answer the public’s need for reliable insurance information in facing difficult situations in 2023.
“Of course this selection does not necessarily negate the performance of other insurances. All participants pass the minimum standards, as proper insurance with a risk based capital (RBC) above 120 percent. However, the 15 selected insurances are the best of the best 2023 in their respective groups. each,” said Ma’ruf, quoted from CNBC Indonesia, Tuesday (31/1).
On the other hand, CNBC Indonesia Financial Expert & Researcher Aulia Akbar said there were 9 assessment categories to determine the winner.
The assessment includes capital adequacy ratio, investment adequacy ratio, loss ratio, growth in gross premium income, net profit rate, increase in assets, debt ratio, return on assets, as well as a media perspective.
“All assessment indicators are quantitative with only one point of view representing qualitative media, even that is a small part of the total weight of the assessment,” he explained.
The following is a list of the 15 best and strongest life insurance in 2023 based on the CNBC Indonesia Research version:
Life insurance with assets above IDR 20 trillion:
- PT Asuransi Simas Jiwa
- PT Axa Mandiri Financial Services
- PT BNI Life Insurance
- PT Prudential Life Assurance
- PT Asuransi Jiwa Manulife Indonesia
Life insurance with assets between IDR 6 trillion and IDR 20 trillion:
- PT Panin Dai-ichi Life
- PT Asuransi Jiwa Sinarmas MSIG Tbk
- PT Great Eastern Life Indonesia
- PT Zurich Topas Life
- PT Axa Financial Indonesia
Life insurance with assets between IDR 1 trillion and IDR 5 trillion:
- PT Asuransi Jiwa Starinvestama
- PT Hanwha Life Insurance Indonesia
- PT Asuransi Jiwa BCA
- PT PFI Mega Life Insurance
- PT Lippo Life Assurance
AAUI Forms a Task Force to Review Electric Vehicle Insurance
Bisnis.com, JAKARTA — The Indonesian General Insurance Association or AAUI has formed a task force or special task force to conduct a study of electric vehicle insurance products.
This was conveyed by AAUI Executive Director Bern Dwiyanto to Bisnis, in line with the continued development of electric vehicles in various aspects. The development of the electric vehicle ecosystem will also affect the insurance industry.
According to Bern, currently there is no specific insurance product for electric vehicles. The reason is that there are differences in risk between electric vehicles and conventional vehicles, so special studies by the industry are needed.
AAUI also formed a special task force to carry out the study. Bern stated that the AAUI study could become a reference for the insurance industry in compiling protection for electric vehicles—which is believed to be growing rapidly.
“AAUI this month has formed a task force for this acceleration,” Bern told Bisnis, quoted on Wednesday (1/2/2023).
The task force has a number of duties and powers. The first is to conduct a study on the application of Battery-Based Electric Motorized Vehicle (KBLBB) insurance products abroad, as a reference for Indonesia.
Second, the task force will hold discussions or focus group discussions (FGD) with related parties, including regulators, brand sole agents (ATPM), repair shops, and other parties.
“Third, compiling a review of KBLBB insurance, including Terms & Conditions which include wording, premium rates, and deductibles. The fourth is conducting outreach to AAUI members on the studies that have been prepared,” said Bern.
At present, AAUI has not conducted specific data collection regarding insurance premiums for electric vehicle protection. Existing premiums are still recorded in the motor vehicle insurance data group in general.
Even so, Bern stated that later there would be a separation between the recording of electric vehicle insurance premiums and conventional ones. The data can be used as a reference for industrial developments, as well as a follow-up to the AAUI study.
Property Sector Recovers, Tugu Insurance Records Premium Income of IDR 4.7 Trillion
JAKARTA, KOMPAS.com – PT Asuransi Tugu Pratama Indonesia (Tugu Insurance) feels that the property sector in Indonesia is starting to improve after the Covid-19 pandemic subsides.
According to Tugu Insurance President Director Tatang Nurhidayat, currently property insurance at Tugu Insurance has experienced an increase in terms of premium income.
His party recorded total consolidated gross premium production until the third quarter of 2022 valued at IDR 4.73 trillion, up 10% compared to 2021 of IDR 4.28 trillion.
“During this period, Class of Business (CoB) Fire & Property still contributed the largest premium production, namely IDR 1.76 trillion, up 25% compared to the same period last year of IDR 1.41 trillion,” Tatang explained in a press release received Kompas.com, Wednesday (01/02/2023).
Meanwhile, data from the Indonesian General Insurance Association (AAUI) also stated that premium growth from the property sector was the highest, both in terms of premiums and growth in the third quarter of 2022.
In detail, property insurance grew 30.7 percent (year-on-year/YoY). Meanwhile, the amount of incoming premiums rose from Rp. 15.73 trillion to Rp. 20.57 trillion.
Tugu Insurance as a general insurance company makes property insurance one of its main business lines.
This property insurance product is in great demand, moreover it is intended to cover the risk of damage to buildings, due to the occurrence of things that are not desirable.
Tugu Insurance property insurance can guarantee damage to industrial and non-industrial buildings.
For industrial buildings that can be guaranteed, for example factories, warehouses, gas stations, shops, malls and others. As for non-industrial buildings such as residences, apartments, offices, hospitals, schools and campuses, they also receive guarantees.
Of course if there is damage to the building due to unwanted things such as fire, earthquake, flood or other natural disasters.
“Tugu Insurance continues to innovate to develop its various products and services, including the property insurance business line. Various corporate, retail and sharia insurance services can be obtained at Tugu Insurance, which has been registered and supervised by the Financial Services Authority (OJK),” concluded Tatang.
Things Don’t Go Away, This Is the Fate of Jiwasraya and AJB Bumiputera
Jakarta – The Financial Services Authority (OJK) is handling problems involving the Bumiputera Joint Life Insurance (AJB) and Jiwasraya Insurance. For Jiwasraya, they are currently asked to continue carrying out the policy restructuring that has been carried out and continue with the transfer of policies that agree to restructuring from Jiwasrya to IFG Life.
IKNB Supervision Chief Executive Ogi Prastomiyono revealed that the OJK had given a statement of no objection to the Jiwasraya RPK (Financial Restructuring Plan) through letter S-449/NB.2/2020 October 22, 2020. Based on the results of OJK monitoring several main activities in the RPK have been carried out.
“IFG life that received the transfer has had its capital strengthened through additional capital from both State Equity Participation (PMN) and IFG,” he said in a press conference, Thursday (2/2/2023).
He explained that the policy restructuring had been carried out, followed by the transfer of the policy which agreed to restructuring from Jiwasraya to IFG life.
The transfer of the policy portfolio is currently underway in stages. OJK has asked the Company to transfer all policies immediately.
For policies that have not been transferred, OJK asks Jiwasraya to adjust the RPK so that it reflects the current situation.
“In supporting the process of completing the transfer of policy portfolios, additional capital is still needed from shareholders so that all policies that have agreed to restructuring can be fully transferred to IFG Life,” he explained.
According to Ogi, Jiwasraya must submit an RPK that can complete portfolio transfers for all policyholders who agree to the restructuring, including the additional capital from shareholders needed to complete the said transfer.
OJK Overhauls Deputy Commissioner for Capital Markets, Leasing, and Insurance, Here’s the List
Bisnis.com, JAKARTA – The Financial Services Authority (OJK) has reshuffled the ranks of deputy commissioners and heads of departments under the commissioners of the non-bank financial industry (IKNB), capital markets, education and consumer protection.
There were 16 Work Unit leaders who were sworn in and took their oath of office today, Wednesday (1/2/2023).
“Effectively today, we have a new organizational structure for three fields, namely the Non-Bank Financial Industry (IKNB), Capital Markets and Consumer Education and Protection, and at the same time fill positions in this new structure, including adjustments to the Strengthening and Development Law. Financial Sector (UU PPSK),” said Mahendra in his remarks at the inauguration ceremony which was also attended by the OJK Board of Commissioners at the OJK Wisma Mulia 2 Office, Jakarta.
According to him, the reshuffle of OJK officials is also in line with the implementation of the newly passed financial omnibus law and to adapt organizational needs to stakeholder demands for OJK’s real role.
The appointed officials have also been carefully selected through a direct monitoring process from Members of the OJK Board of Commissioners to eligible candidates.
The new structure of OJK 2023 at Deputy Commissioner and Head of Department levels:
- Bambang W. Budiawan as Deputy Commissioner for Supervision of Financing Institutions and Other Financial Services Institutions;
- Moch. Ihsanuddin as Deputy Commissioner for Insurance and Pension Fund Supervision;
- Djustini Septiana as Deputy Commissioner for Issuer Supervision, Securities Transactions, and Special Examinations;
- Yunita Linda Sari as Deputy Commissioner for Investment Management Supervision of the Capital Market and Securities Institutions;
- Sarjito as Deputy Commissioner for Consumer Protection;
- Dewi Astuti as Head of the IKNB Insurance and Support Services Supervision Department;
- Moch. Muchlasin as Head of the Pension Fund Supervision Department and IKNB Special Supervision;
- Ahmad Nasrullah as Head of the Supervision Department for Financing Institutions and Special Financial Institutions;
- Triyono as Head of the Department of Supervision of Other Financial Services Institutions;
- Djoenieri as Head of the Department of Regulation and Development of IKNB;
- Asep Iskandar as Head of the Department of Licensing, Special Examination and Quality Control of IKNB;
- Ona Retnesti Swaminingrum as Head of Securities Institution Supervision Department;
- Khoirul Mittaqien as Head of the Department of Special Examination and Securities Transactions;
- Luthfy Zain Fuady as Head of Capital Market Licensing Department;
- Novira Indrianingrum as Head of Issuer and Public Company Supervision Department;
- Bernard Widjaja as Head of Market Conduct Supervision Department.
Insurance Issues in RI: People Know But Don’t Understand!
Jakarta, CNBC Indonesia – As we know that the Covid-19 pandemic has caused many business sectors to collapse. Even so, the insurance business still performed quite well.
In fact, the life insurance business in Indonesia can still grow until the end of 2021. This indicates that our society is now starting to realize the importance of insurance products for everyday life.
The Services Authority is again holding a National Financial Literacy and Inclusion Survey (SNLIK) in 2022.
The results of the 2022 SNLIK show that the financial literacy index of the Indonesian people is 49.68 percent, an increase compared to 2019 which was only 38.03%. While the financial inclusion index this year reached 85.10%, an increase compared to the previous SNLIK period in 2019, which was 76.19%.
This shows that the gap between literacy levels and inclusion levels is decreasing, from 38.16% in 2019 to 35.42% in 2022.
If you look in detail, referring to OJK data, financial literacy in the insurance industry reached 15.8% in 2016, then rose to 19.4% in 2019, and shot back to 31.72% in the current year 2022.
Meanwhile, inclusion in the insurance industry reached 12.01% in 2016, rose to 13.15% in 2019 and again increased 16.63% in the current year 2022.
Based on these data, this shows quite good development, the figure of 31.72% is quite a high increase from 2019. This means that people already have enough knowledge, skills, beliefs that influence a person’s attitude and behavior to make decisions in managing their finances, especially in terms of insurance. This.
However, the most important thing is that we have to see the gap, because it means that people buy insurance products and also understand these products. If you look at the data for 2022, the gap is far away, namely 15.09% from 2019 at 6.25% gap.
This means that people really know about insurance products, but the big question is whether they understand the financial products they buy? this is what should be highlighted.
This gap should be endeavored to get smaller. If high inclusion is good, but if the inclusion index is too far from the literacy index this will potentially be a problem.
Kresna Life Submitted Health Plans Many Times But Was Rejected, Here’s OJK’s Explanation
Bisnis.com, JAKARTA — The Financial Services Authority (OJK) said that PT Asuransi Jiwa Kresna (Kresna Life) had submitted a Financial Restructuring Plan (RPK) several times, but was rejected.
OJK Chief Executive for Non-Bank Financial Industry Supervision (IKNB) Ogi Prastomiyono said that during the submission of the last RPK, namely towards the end of 2022 or to be precise on December 30 2022, Kresna Life submitted an RPK with a scheme in the form of a conversion of company obligations or debt and policy claims from policyholders to be subordinated loans.
“In the RPK there is no explanation regarding the commitment or approval of policyholders to convert rights for policy claims into subordinated loans. Therefore, we need concrete evidence that they [policyholders] agreed and it was transferred to subordinated loans,” said Ogi in a press conference on the Development of Policy and Supervision of the Non-Bank Financial Industry (IKNB) online, Thursday (2/2/2023) .
Meanwhile, since OJK received Kresna Life’s RPK, OJK together with Kresna Life’s shareholders, directors and commissioners made a commitment in the form of the last opportunity that the company had to fulfill.
“We emphasize to shareholders, directors and commissioners that this is the last chance and this must be fulfilled within 1 month of the last meeting which will be due on February 13, 2023,” he explained.
In addition, OJK also requested that Kresna Life provide transparency of information to all policyholders so that they understand the risk scheme and consequences of the planned conversion of the policy to subordinated in the RPK, both the risks and the rights of the policyholders to switch to subordinated loans.
“We will wait within a week how many of the policyholders agree, and we will calculate the impact of the conversion,” he continued.
The reason, said Ogi, is that the OJK will carry out calculations related to fulfilling the level of solvency or risk-based capital (RBC), investment adequacy ratio (RKI), to liquidity so that Kresna Life is able to pay the obligations of policyholders that are due. Later, OJK will ask for help from independent parties to public accountants to ensure that the processes and schemes are up to standard.
Furthermore, if the policyholders are willing to convert to subordinated loans, but the solvency ratio is not met, then the shareholders must increase capital.
“Because it needs to be known, the last scheme does not include additional capital from shareholders, so it only converts policyholders into subordinated loans,” he said.
Meanwhile, if PSP does not inject capital, OJK will take firm steps. “If it is not deposited or does not meet the requirements for sustainability, OJK will take firm action because this opportunity has been given long enough to Kresna Life to save the company,” he concluded.
This information is presented by L&G Insurance Broker – The Smart Insurance Broker
—
LOOKING FOR INSURANCE PRODUCTS? DON’T WASTE YOUR TIME AND CONTACT US RIGHT NOW
L&G HOTLINE 24 HOURS: 0811-8507-773 (CALL – WHATSAPP – SMS)
website: lngrisk.co.id
E-mail: customer.support@lngrisk.co.id
—
