Liga Asuransi – Dear readers, how are you and your business doing? Hopefully in good condition and moving forward. As usual, 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.
To Strengthen the Insurance Industry, OJK Will Raise the Capital Limit for the Insurance Industry
KONTAN.CO.ID – JAKARTA. The Financial Services Authority (OJK) plans to increase the capital limit for insurance companies to make this industry healthier. Efforts to strengthen this financial aspect are also related to the application of Statement of Financial Accounting Standards (PSAK) 74 which will be implemented in 2025.
This capital increase plan is stated in the RPOJK Draft Matrix document Amendment to POJK 67/2016 concerning Business Licensing and Insurance Institutions which mentions a number of provisions regarding capital through Article 12.
The article stipulates that an insurance company must have a paid-up capital of IDR 500 billion, an increase from the previous provision of IDR 150 billion.
Responding to this, the Executive Director of the Indonesian General Insurance Association (AAUI) Bern Dwyanto said, the association is in line with the efforts of the OJK because in order to grow and develop in a healthy and sustainable manner in the future, it is necessary to have strong capital support, good human resources. well, with the implementation of strict governance and effective risk management.
“Capital of insurance and reinsurance companies has followed the rules in POJK 67. Fulfillment of the capital limit, makes the risk-based ratio (RBC) level and the company’s finances stronger,” said Bern when contacted by Kontan.co.id, Tuesday (14/3 ).
However, said Bern, there are challenges for each company to continue to maintain the RBC level, how to manage it properly, as an indicator of the health of an insurance company.
“In this case, AAUI’s authority is to remind members of the rules/regulations in terms of meeting the company’s soundness level. Conducting training in order to fulfill competence in compiling RBC,” he said.
Deputy Chair of the Indonesian General Insurance Association (AAUI) for Information and Applied Technology Dody Dalimunthe views that capital in insurance companies is related to equity position which will determine the limit of the amount of self-risk that can be withheld when issuing insurance policies.
“The greater the equity, the greater the own risk that will be retained, and the remaining risk will be placed through a reinsurance mechanism,” Dody told Kontan.co.id, Tuesday (14/3).
Dody added, the risk characteristics are more complex, especially with added investment risk. Therefore, insurance companies must have sufficient equity in order to have sufficient buffers to maintain their solvency.
Meanwhile, from a business perspective, President Director of PT Zurich Asuransi Indonesia Edhi Tjahja Negara said the new regulation was to strengthen the insurance industry and was very important to support and maintain the momentum of economic growth.
Apart from that, said Edhi, it is a joint responsibility of both business actors and of course the regulator, in this case the OJK, plays a very important role in strengthening the insurance industry.
According to Edhi, raising the capital limit is one of the efforts to strengthen the resilience of the insurance industry and this is certainly in line with the insurance industry’s architectural plans.
“In addition to various other initiatives from regulators, associations, and all of us as insurance industry players,” he added.
Meanwhile, Laurentius Iwan Head of PR, Marcomm, and Events Asuransi Astra said that OJK’s move is one of the efforts to ensure that the insurance industry is healthy so that consumers also have confidence in insurance performance and are more securely protected.
“If the steps are to ensure the health and sustainability of the industry, of course, this plan is good, yes,” he said.
Budi Herawan was Elected as Chairman of AAUI for the 2023-2026 period
KONTAN.CO.ID – JAKARTA. Budi Herawan was elected as General Chair of the Indonesian General Insurance Association (AAUI) for the 2023-2026 period.
In the election, Budi won 39 votes, while Benny Waworuntu got 32 votes and Hastanto SM Widodo got 4 votes.
AAUI Executive Director Bern Dwyanto said, through a fairly long process the AAUI Congress which is held once every three years begins with a General Meeting of Members and is followed by a Congress to elect the AAUI General Chair.
“As of today, Budi Herawan is officially chairman of AAUI for the 2023-2026 period,” Bern said when met in Jakarta, Thursday (16/3).
Bern added, in the future, the insurance industry will indeed face quite a lot of challenges, so it requires a leader and a team that supports the insurance industry to grow and develop as expected by the public and regulators, namely the OJK.
Meanwhile, Budi said that AAUI had a lot of homework. “We will fix the good ones, we will fix the bad ones to make them better,” he said.
Budi hopes that the general insurance industry’s marwah will be better. He has a mission to restore the prestige of the general insurance industry so that it is on par with other industries.
“So, I think this is a priority that will be carried out in the short term while compiling a strong management team for this period,” he said.
According to Budi, the Financial Services Authority (OJK) also really hopes that AAUI will partner well to solve problems in the general industry. Meanwhile, priorities for economic growth, premiums, and improving the reputation of the insurance industry are AAUI’s priorities for the next three years.
“I will try my best so that there is no general insurance and reinsurance industry that is sick,” he added.
Source : https://keuangan.kontan.co.id/news/budi-herawan-terpilih-sebagai-ketua-umum-aaui-periode-2023-2026
Astra Life Launches Flexi Life Protection Sharia Insurance
JAKARTA, KOMPAS.com – PT Asuransi Jiwa Astra (Astra Life) has launched a sharia life insurance product called Flexi Life Protection Syariah. This product is marketed digitally on the Astra Life e-commerce ilovelife.co.id.
President Director of Astra Life Windawati Tjahjadi said, Flexi Life Protection Syariah is a term life insurance product. This sharia life insurance product has financial protection in the form of insurance compensation benefits for the risk of death of up to IDR 2 billion and without a medical check.
“This insurance product also provides an additional 100 percent insurance compensation for the risk of death due to an accident,” he said in an official statement, Thursday (16/3/2023). He added, the contribution amount for this product starts from IDR 228,000 per year.
Payments are available in monthly, quarterly, semi-annual to annual payment terms. Meanwhile, the membership age requirements range from 16-60 years with a protection period of 1 year and can be extended automatically. Automatic extension can be made until the insured participant reaches the age of 85 years.
“Hopefully, through this new product, we can reach and protect more Indonesian people, especially the young millennial family segment who are looking for sharia-based products. by prioritizing aspects of the online insurance experience that are safe, easy, and flexible,” said Windawati.
After Covid, the Reinsurance Industry Highlights Treaty and Market Hardening Problems
KONTAN.CO.ID – JAKARTA. Finally, Covid 19 is over. The pandemic ended at the same time as March entered the renewal treaty period. Some insurance companies have a renewal treaty on April 1 or June 1.
Treaty is a written agreement between an insurance company and a reinsurance company regarding risk sharing.
Main Director of Indonesia Re, Benny Waworuntu said, in connection with the end of the negotiation process for the January 2023 renewal treaty, Indonesia Re saw the need to hold face-to-face (offline) meetings.
Treaty allows insurance companies to have coverage from reinsurance companies automatically. “Regarding efforts to build a renewal treaty rhythm, this is also to maintain fairness in the market,” said Benny, Tuesday (14/3).
Meanwhile, the hardening market occurred in global and regional markets. A hardening market is a condition when the global insurance and reinsurance industry records an increase in claim payments, thereby affecting profitability.
Credit Insurance Needs Joint Risk Mitigation
Bisnis.com, JAKARTA — Like a two-bladed knife, PT Reasuransi Indonesia Utama (Persero) or Indonesia Re views credit insurance as having positive and negative sides. This makes every financial services industry need to mitigate the risk of credit insurance.
President Director of Indonesia Re Benny Waworuntu said credit insurance had a positive impact on moving the real sector which had an impact on increasing people’s purchasing power.
“However, the problem is that not all stakeholders involved know how to properly mitigate [credit insurance] risks, starting from the front, for example, such as banking, financing, insurance, and reinsurance itself,” said Benny in a limited discussion, Tuesday (14/3/2023).
As a player in the reinsurance industry, Benny invites all stakeholders, such as banks, financing institutions, the insurance industry, to the reinsurance companies themselves, to jointly carry out risk mitigation.
“Risk mitigation starts from pricing issues, reserves, terms and conditions issues. We want all of us to have the same perspective that there is a risk and that each party has an obligation to mitigate risk at their own level,” he said.
Benny emphasized that risk management is a step that must be taken by every financial services industry.
“Risk management, the point. Not only in us [risk management], but also in all stakeholders, starting from banking, financing, insurance and reinsurance as well,” he explained.
Previously, the Indonesian General Insurance Association (AAUI) noted that credit insurance claims were observed to have increased by 65.3 percent on an annual basis (year-on-year/yoy) in the fourth quarter of 2022.
Deputy Chairperson of AAUI for Statistics & Research Sector Trinita Situmeang said that one of the reasons for the soaring claims paid on credit insurance was due to the Covid-19 pandemic.
Throughout 2022, claims paid for credit insurance will increase by IDR 4.98 trillion. This means that claims paid for this line of business have increased from IDR 7.63 trillion to IDR 12.61 trillion in the fourth quarter of 2022.
“Credit risk in the last three years has increased, then the default risk has increased which can be caused by a pandemic, economic or other factors. So it will always increase and will roll over every year,” Trinita said in a press conference on General Insurance Industry Data for the 4th Quarter of 2020 in Jakarta, on Tuesday (28/2/2023).
Trinita explained that to suppress the surge in credit insurance is by mitigating risks through price improvements to coordination with related parties such as banks and leasing, as well as ecosystems in credit insurance. “In the future, [credit insurance] must be mitigated, one of which is by improving the price structure,” he said.
Source: https://finansial.bisnis.com/read/20230316/215/1637903/asuransi-kredit-perlu-mitigasi-risiko-bersama.
AJB Bumiputera 1912 Payment Target for Arrear Claims to be Completed in 2025
Bisnis.com, JAKARTA — Bumiputera 1912 Joint Life Insurance (AJB) targets settlement of arrears of claims in 2025. The total arrears to be paid reach IDR 5.29 trillion after the policy on Reducing Benefit Value (PNM).
“Overall, the pending claims disbursement process will be carried out in stages until 2025. The total value of claims after the reduction in benefit values is IDR 5.29 trillion,” said AJB Bumiputera 1912 Main Director Irvandi Gustari quoted on Wednesday (15/3/2023).
Irvandi said that to overcome delayed claim payments, the company fulfills liquidity by requesting the disbursement of excess guarantee funds that have been approved by the Financial Services Authority (OJK), releasing share ownership in companies listed on the Indonesia Stock Exchange, as well as optimizing and disposing of several land and building assets. contained in the company’s Financial Restructuring Plan (RPK).
Disbursement of pending claims was taken after the OJK as the supervisor of the financial services industry has stated that it has no objection to the company’s RPK through letter No. SR.1/D.05/2023 on 10 February 2023. Irvandi also targets the company to return to health in 2027.
“From RPK it’s healthy 2027,” he said during a visit to the Bisnis Indonesia Office on Wednesday, March 1, 2023. Previously, AJB Bumiputera began paying delayed policy claims on March 6 yesterday. The 111-year-old company paid claims worth IDR 22.34 billion to 7,805 individual insurance policies.
On March 13, the company again disbursed 8,124 policies worth a total of IDR 25.84 billion. Please note that payment of pending claims is made according to PNM and the availability of funds.
Priority is given to policyholders who have a claim benefit value after PNM in the amount of a maximum of IDR 5 million, with one full payment. Meanwhile, for the benefit value of claims after PNM of more than IDR 5,000,001 (five million and one rupiah), it will be paid in two stages, namely 50 percent of the claim value after PNM in the year of filing and the next 50 percent of the settlement of the claim value after PNM in the following year.
Chubb Life Indonesia Strengthens Customer Service
JAKARTA – PT Chubb Life Insurance Indonesia ( Chubb Life Indonesia ) continues to improve its services to customers in Indonesia. One of them is by strengthening agent and telemarketing service channels. This step was taken so that customers get the best service with Chubb Life Indonesia.
President Director of PT Chubb Life Indonesia Kumaran Chinan said the agency business line is one of the company’s strengths so far. This strength grew even more after Cigna Insurance joined Chubb Life Indonesia. “We are optimistic that by joining forces with Cigna, we will be bigger and stronger,” said Kumaran Chinan in a written statement, Tuesday (14/3/2023).
PT Asuransi Cigna merged with PT Chubb Life Indonesia starting February 3, 2023. The merger refers to the Financial Services Authority (OJK) Decree no. S-4 /D.05/2023, dated February 2, 2023, and Letter of the Ministry of Law and Human Rights AHUAH.01.030020515 dated February 3, 2023, in which PT Chubb Life Insurance Indonesia became a merged company.
“With this merger we can optimize performance and achieve positive growth in 2023. That’s why, not long after the merger, Chubb Life opened a new agency branch in Padang, West Sumatra,” said Kumaran Chinan.
The opening of the Padang marketing office is in line with the economic movement in West Sumatra which has continued to grow in the last two years. Data from the Central Statistics Agency (BPS) stated that West Sumatra’s economy in 2022 would grow 4.36 percent higher than 2021, which was 3.29 percent. Meanwhile, in 2023, West Sumatra’s economy is predicted to grow 4.2 to 5.0 percent.
Currently, the total number of Chubb Life Indonesia agents is 5,600 people spread throughout Indonesia. While the total telemarketing 400 people. With the opening of a marketing office in Padang, now Chubb Life Indonesia has 15 marketing offices in Jakarta, Bandung, Surabaya, Makassar, Denpasar, Medan, and finally in Padang which opened on 14 March 2023.
Even though the insurance industry’s performance had slumped, OJK noted that in January 2023 the performance of life insurance premiums still contracted 8.13 percent year-on-year (yoy). The contraction in life insurance performance has been going on since January 2021. OJK is optimistic that the prospects for the insurance industry will relatively improve this year. OJK projects that the insurance industry will grow 5-7 percent in 2023.
Based on the latest data, in the fourth quarter of 2022 (unaudited), Chubb’s total assets are IDR 2.61 trillion. Meanwhile, total assets in 2021 will reach IDR 2.66 trillion. In addition, the capital adequacy ratio (RBC) reached 1,282.42%, far above the government’s required minimum limit of 120%. This shows Chubb’s financial strength.
Previously, Bryce Johns, Global President of Chubb Life, said Indonesia was one of the countries Chubb Life focused on in the Asia Pacific region. The combined strengths of the two companies will certainly make Chubb Life a good choice for customers and business partners.
Since the effective date of the merger, all customer protection continues to operate according to the applicable policy provisions and claims are now being submitted to Chubb Life Indonesia. “We will strengthen distribution channels through agencies, brokers, bancassurance, partnerships, and also digital. We are sure that in the future Chubb Life Indonesia will be able to provide optimal products and services to all customers,” said Kumaran Chinan.
Chubb is the world’s publicly traded property and casualty insurance company. With operational reach spread across 54 countries. Chubb Limited the parent company of the Chubb Group, listed on the New York Stock Exchange (NYSE: CB). Chubb Life started its business operations in Indonesia in 2009 by acquiring PT Asuransi Jiwa Bumi Arta Reksatama, an insurance company founded in 1985.
Source : https://ekbis.sindonews.com/read/1046737/178/chubb-life-indonesia-perkuat-layanan-nasabah-1678795390
This information is presented by L&G Insurance Broker – The Smart Insurance Broker.
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