Liga Asuransi – Hello risk takers, in the second week of April 2024 we will once again discuss developments and events in the world of insurance in Indonesia in the last week, because as we all know, the object of insurance is not only vehicles, life, health or property, but also The scope of objects that can be insured is very wide, especially in the business sector. Almost all business processes from A to Z can be protected by insurance. In this edition, as usual, we have again collected 7 selected news related to insurance that are good for you to know.
As always, if you are interested in this article, please share it with your colleagues so they can understand it as well as you.
The Bleak Future of Bumi Asih Jaya Insurance Amid Legal Upheaval
The bankruptcy case involving PT Asuransi Bumi Asih Jaya continues to face sharp scrutiny from various parties, including the Financial Services Authority (OJK) and the Minister of Law and Human Rights of the Republic of Indonesia (Menkumham) Yasonna Laoly. In the latest meeting between the OJK and the Minister of Law and Human Rights, it was revealed that the company’s business license had been revoked since 2013 by the OJK, but the settlement was neglected.
Chief Executive of the OJK Insurance, Guarantee and Pension Fund Supervision (PPDP), Ogi Prastomiyono, explained that even though its business license had been revoked, PT Asuransi Bumi Asih Jaya did not fulfill the clause to settle its debts and obligations. This resulted in OJK filing for bankruptcy with the commercial court, with a cassation decision from the Supreme Court in 2015.
However, the problem is further complicated by the frequent changes in curators in this case. According to Minister of Law and Human Rights Yasonna Laoly, one of the main obstacles in resolving this case is the problem of frequently changing curators and allegations of misappropriation of bankruptcy assets. Concerns regarding the continuity of the legal process have become a serious focus, especially with the lack of seriousness in handling it by the curator team.
In an effort to resolve this problem, the meeting between the OJK, the Minister of Law and Human Rights, and the owner of PT Asuransi Bumi Asih Jaya, Rudi Sinaga, highlighted the urgency of revising the Bankruptcy Law and Postponement of Debt Payment Obligations (PKPU). Minister of Law and Human Rights Yasonna Laoly emphasized the need for legal revision to overcome this protracted problem.
Wahyudin Rahman, a risk management practitioner and General Chair of the Indonesian Insurance Writers Community (Kupasi), believes that the problems faced by Bumi Asih Jaya Insurance are mostly caused by curators who are not serious in handling cases. With indications of asset misappropriation, trust in the legal process is increasingly eroded.
Given the complexity and impact caused by this case, stakeholders are expected to work together to find a fair and sustainable solution. Revision of the law and serious handling of the receivership issue is the key to avoiding further setbacks in resolving this case.
OJK Reveals Seven Insurance Companies Are Still Under Special Supervision, Three Companies Have Lost Their Business Licenses
Towards the beginning of 2024, the Financial Services Authority (OJK) is lifting the lid on the condition of insurance companies in Indonesia. According to data released on April 3 2023, there are still seven insurance companies that are under special supervision. This figure shows resilience which has been stagnant since last January, but shows a decline from the position in December 2022 which recorded 12 companies.
Chief Executive of the OJK Insurance, Guarantee and Pension Fund Supervision (PPDP), Ogi Prastomiyono, explained that these companies were under special supervision because their financial conditions were unhealthy. The main factors causing this include the lack of solvency ratios, liquidity and investment adequacy which have not yet reached 80%. This shows the need to increase the company’s capital to meet the minimum requirements set.
“The unhealthy condition of this insurance company is caused by a lack of capital to cover the deficit and the failure of shareholders to provide additional capital or find strategic investors,” said Ogi.
OJK has emphasized that they will not hesitate to revoke the business permits of insurance companies that are unable to improve their financial conditions. Several cases of business license revocation have occurred in 2023, including PT Asuransi Jiwa Kresna Life (Kresna Life), Asuransi Prolife Indonesia, and PT Asuransi Purna Artanugraha (Aspan).
Kresna Life lost its business license on June 23 2023 because it was unable to meet the minimum RBC requirement of 120% and was unable to cover the financial deficit. Prolife Indonesia, previously known as Indosurya Life, also lost its business license on November 2 2023 because it was unable to resolve the problems it was facing. Meanwhile, Aspan had its business license revoked in early December 2023 because it did not meet the specified solvency, equity and investment adequacy ratios.
OJK’s affirmation of the need to improve the financial condition of insurance companies is an important highlight in maintaining policyholder trust. Despite the challenges, hope is still open for these companies to improve their performance and increase public trust in the insurance industry in Indonesia.
Indonesian Insurance Industry Continues to Grow, Total Assets Reach IDR 1,130.05 Trillion in February 2024
The Indonesian insurance industry continues to show positive development, with total assets reaching IDR 1,130.05 trillion in February 2024. Data released by the Financial Services Authority (OJK) shows an increase of 2.08% on an annual basis compared to the same period the previous year. which recorded total assets of IDR 1,106.97 trillion.
Chief Executive of the OJK Insurance, Guarantee and Pension Fund Supervision (PPDP), Ogi Prastomiyono, explained that the total assets consist of commercial and non-commercial insurance (social insurance). On the commercial insurance side, total assets reached IDR 909.77 trillion, marking an increase of 2.47% on an annual basis. Meanwhile, non-commercial insurance which includes the Social Security Administering Agency (BPJS) Health and Employment reached IDR 220.27 trillion.
In the non-commercial insurance sector, which includes BPJS Health and BPJS Employment assets, total assets were recorded at IDR 220.27 trillion with growth of 0.53% on an annual basis.
Ogi also said that commercial insurance premium income in February 2024 reached IDR 60.84 trillion, marking an increase of 10.88% on an annual basis. Life insurance premium income grew by 1.45% with a value of IDR 30.77 trillion, while general insurance and reinsurance premiums reached IDR 30.07 trillion with significant growth of 22.53% on an annual basis.
The growth of the life and general insurance industry is supported by solid capital, with Risk Based Capital (RBC) levels reaching 452.24% and 339.94% respectively, well above the threshold set by the OJK of 120%.
On the pension fund industry side, total pension fund assets also recorded positive growth of 10.88% on an annual basis, reaching IDR 1427.01 trillion. Voluntary pension funds recorded assets of IDR 372.34 trillion with growth of 7.03% annually, while mandatory pension programs recorded assets of IDR 1054.67 trillion with growth of 12.07% annually.
Lastly, guarantee companies also recorded significant growth, with asset value reaching IDR 46.73 trillion, up 15.50% on an annual basis.
This data shows that the Indonesian insurance industry continues to develop and shows strong resilience, giving stakeholders and policy holders hope for the sustainability of this industry in meeting needs and providing good protection for the community.
Allianz Life Indonesia Reveals Insurance Protection for Cancer, Responding to Kate Middleton’s Case
The leading life insurance company in Indonesia, PT Asuransi Allianz Life Indonesia (Allianz Life), highlights the importance of insurance protection against the risk of cancer, responding to the case that happened to the British Princess, Kate Middleton. According to Allianz Life Indonesia Country Chief Product Officer, Himawan Purnama, protection for cancer can be obtained through various types of insurance policies, but with applicable terms and conditions.
Himawan explained that a health insurance policy can provide reimbursement for medical costs for cancer sufferers, or through a critical illness insurance policy that provides sum assured. However, a diagnosis of cancer must be stated after the customer has a policy and the policy status is active. If the customer has been diagnosed with cancer before purchasing the policy, then the risk of cancer will be excluded from the policy.
Allianz Life Indonesia also provides additional benefits or special health riders for cancer in the form of SmartMed Cancer. This rider offers comprehensive coverage for all types of cancer, including reimbursement for medical costs, traditional treatment, psychological counseling, dietitian consultations, as well as diagnostic examinations.
Himawan emphasized that with SmartMed Cancer, customers not only get reimbursement for medical costs, but also other additional benefits that help with treatment, so that customers can focus on the healing process.
The case of Kate Middleton who was diagnosed with cancer after undergoing major stomach surgery is an example that highlights the importance of insurance protection against cancer. This is because cancer is one of the highest causes of death in the world. Through proper insurance coverage, individuals can obtain the financial support necessary to face treatment and recovery from this disease.
Igloo and Tokopedia Collaborate with Insurtech to Provide Goods Insurance
Tokopedia, one of the leading e-commerce platforms in Indonesia, has entered into a strategic partnership with insurtech startup Igloo to provide access to insurance for consumers. Through this collaboration, Tokopedia consumers will be able to access goods protection insurance in the e-commerce, logistics and fintech sectors.
In the initial stage, Igloo will provide three types of goods protection insurance on the Tokopedia platform. Consumers will be given the option to choose the type of insurance that suits their needs before continuing the payment process. The cost and term of insurance will vary depending on the type of protection chosen, including:
Gadget protection, with costs starting from IDR 48,300 for a 12 month period.
Electronic protection, with costs starting from IDR 14,334 for a 12 month period.
Total damage protection, with costs starting from IDR 500 for a period of 3 to 12 months.
Apart from providing goods insurance for consumers, Igloo and Tokopedia are also exploring cooperation opportunities in other embedded insurance fields. This shows their commitment to providing better and more comprehensive services to Tokopedia platform users.
Previously, Tokopedia had collaborated with PT. Panasonic Insurance Service for shipping insurance services, as well as partnering with PT Asuransi Tokio Marine Indonesia for user transaction protection. This partnership confirms Tokopedia’s commitment to providing additional protection and security for users during transactions on their platform.
Source : https://id.techinasia.com/tokopedia-kerja-sama-igloo
Performance of Various Insurance Issuers Listed on the Indonesian Stock Exchange During 2023
Various performance trends can be seen from a number of insurance issuers listed on the Indonesia Stock Exchange throughout 2023. The financial reports released by several of these companies show different achievements.
PT Asuransi Bintang Tbk (ASBI), for example, managed to record a profit of IDR 5.826 billion, up 13.22% from the previous year. Underwriting income also increased by 3.5%, while gross premiums decreased by 17.62%.
Meanwhile, PT Maskapi Reinsurance Indonesia Tbk (MREI) managed to record impressive profits, increasing 63.25% from the previous year to IDR 61.356 billion. Underwriting income and gross premiums also experienced significant increases.
On the other hand, PT Asuransi Bina Dana Arta Tbk (ABDA) experienced a decline in profit of 7.19%, even though gross premium income grew positively by 15%. Chief Executive Officer of Oona Indonesia, Vincent C. Soegianto, stated that even though there was a decline in profits, this achievement was still quite competitive in the industry.
Vincent also emphasized the company’s strength in terms of RBC (Risk Based Capital) which reached 701.4% as of the end of 2023, showing great trust from customers in their products.
Responding to this trend, Vincent revealed that ABDA would invest in technology, human resources and brands to increase profits which had fallen.
Reliance Sekuritas analyst, Reza Priyambada, assessed the positive performance of a number of insurance issuers. He highlighted stocks such as PT Panin Financial Tbk (PNLF) and PT Malacca Trust Wuwungan Insurance Tbk (MTWI) which have strong fundamentals and positive performance.
Although Reza did not provide specific recommendations for insurance stocks, he emphasized the importance of considering shares of insurance issuers that show strong fundamentals and positive performance.
Source : https://keuangan.kontan.co.id/news/begini-kata-analis-soal-rekomendasi-saham-emiten-asuransi
The Brilliant Performance of PT Asuransi Tugu Pratama Indonesia Tbk (TUGU) Records Significant Improvement in 2023
PT Asuransi Tugu Pratama Indonesia Tbk (TUGU) posted an impressive increase in performance throughout 2023, as revealed by its financial report.
According to the financial report presented, the consolidated profit for the year attributable to the owners of the parent entity reached IDR 1.32 trillion. This marks a jump in Tugu Insurance’s net profit of 281% from the same period the previous year, which only reached IDR 347.15 billion.
This extraordinary achievement is also reflected in Tugu Insurance’s gross premium income which reached IDR 7.7 trillion on a consolidated basis. This shows an increase of 15% compared to the previous year which reached IDR 6.7 trillion.
In terms of premium production details, the fire & property, miscellaneous, engineering and aviation sectors will be the largest contributors in 2023. Meanwhile, underwriting income recorded a figure of IDR 2.6 trillion, an increase of 11% compared to the same period the previous year.
President Director of Tugu Insurance, Tatang Nurhidayat, explained that Tugu Insurance’s total expenses for that year were recorded at IDR 1.96 trillion, showing a significant decrease of 24% from the previous year which reached IDR 2.59 trillion.
Tatang emphasized that the company continues to strive to manage various risks carefully and consistently. He added that Tugu Insurance’s premium production in early 2024 was still in line with the targets set in the Company’s Work Plan and Budget (RKAP).
Optimism also radiates from insurance industry regulators and business players, who project that general insurance premium income growth in 2024 could reach above 10%. Tugu Insurance itself is optimistic that it will continue to achieve an increase in premium production in 2024.
This year, Tugu Insurance’s focus will be on strategies for carrying out business activities by optimizing captive business in several main sectors, as well as increasing non-captive business through product, service and distribution channel innovation. This is expected to open up opportunities for penetration into the wider SME, retail and BUMN synergy markets.
Source : https://keuangan.kontan.co.id/news/laba-asuransi-tugu-pratama-tugu-melesat-281-intip-penopangnya
This article is brought to you by L&G Insurance Broker, insurance broker Indonesia..
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