Liga Asuransi – What an assembly of readers. How are you? As usual, we are again presenting selected information about the world of insurance in the country. This week there has been much of the latest information from the insurance world. For that, we always present it to loyal readers.
We hope this information can sharpen your insurance knowledge and is functional. If you are interested in this news, please share it with your colleagues, so they understand like you.
Insurtech Facing Cases of Default, Affecting Insurance Industry Reputation
Bisnis.com, JAKARTA— Fuse also highlighted cases of default in Indonesia. This company is an insurtech platform that connects various insurance products from many insurance companies with multiple means of distribution.
Founder and Chief Executive Officer (CEO) Andy Yeung said a default would certainly affect public confidence in the insurance industry.
Therefore, he continued that insurance companies need to strengthen risk management and oversight of investments made to minimize the risk of default and ensure sustainable business continuity.
“Apart from that, the regulator also needs to take strict steps to prevent default cases from occurring that harm customers and strengthen public confidence in the insurance industry as a whole,” said Andy when contacted by Bisnis Thursday (23/2/2023).
Andy assessed that digital financial literacy also plays a crucial role in financial inclusion and services, as well as increasing the adoption of digital financial products. He also believes that partners/agents/brokers are essential in educating customers.
He added that Fuse improves the ability of agents to promote insurance products to customers. The hope is that they can provide better advice and recommendations according to needs to gain more trust from customers.
“Currently, we have over 80 thousand partners/agents spread throughout Indonesia,” he said.
Even though the default case has affected public trust, Andy admits that he is sure that insurance penetration and literacy will increase so that more and more Indonesian people can have insurance protection.
The company also continues to try to take advantage of various aspects to increase digital competitiveness throughout the country by improving insurance products that are easy to understand, useful, and affordable, as well as cost-effective insurance distribution methods.
“We are well positioned to enter the underpenetrated insurance market using our unique technology platform, which combines multiple distribution models, adapting to the different ways consumers buy insurance,” he said.
Jasindo Insurance Aims for Premiums to Grow 24 Percent in 2023
Bisnis.com, JAKARTA — PT Asuransi Jasa Indonesia (Jasindo) has set a premium growth target of 24 percent this year, in line with the company’s performance which has improved in the 2022 period.
Jasindo Insurance Business Development Director Diwe Novara said that the growth target of 24 percent is a realistic figure for the company.
“All companies will set targets and try to achieve the highest possible growth, but we must also be realistic. So, this year we are targeting growth of 24 percent for premiums,” Diwe told Bisnis Wednesday (22/2/2023).
As for maintaining the company’s performance, Diwe said that Asuransi Jasindo would be selective in developing products and focusing on corporate developments.
In addition, his party also conducts periodic evaluations and research. Based on the financial reports, Jasindo was able to turn around risk-based capital (RBC) from the December 2021 period, which was recorded at -84.85 percent to 137.21 percent in December 2022.
According to Diwe, the company succeeded in reversing the RBC ratio because Jasindo divested its investment in shares and evaluated assets which were also carried out.
In addition, Jasindo also carried out a credit insurance restructuring which was included in the company’s financial restructuring steps.
In addition, Diwe added that IFG, as the holding company, supported the financial restructuring plan (RPK) by providing a shareholder loan of IDR 250 billion.
“Jasindo has also carried out intense coordination with the Ministry of SOEs and the OJK regarding the recovery of the RBC, and all have produced results,” he said.
In line with the RBC improvement, Asuransi Jasindo also experienced a growth in profit after tax of more than 27 times throughout 2022 or increasing from IDR 9.13 billion to IDR 250.18 billion.
Diwe stated that the company’s high performance in the 2022 period was Jasindo’s effort to provide optimal customer service, in addition to the company’s focus on RPK.
“The industry’s trust in continuing to use Jasindo is our encouragement that the company can grow even better,” he concluded.
EGMS Holds, Maximus Insurance Changes Plan for Separation of Sharia Business Units
KONTAN.CO.ID – JAKARTA. PT Asuransi Maximus Graha Persada Tbk (Maximus Insurance) has changed its plan to separate its sharia business unit after holding an Extraordinary General Meeting of Shareholders (EGMS).
In its announcement published by KONTAN (24/2), the EGMS held on 22 February 2023 discussed changes to Maximus Insurance’s work plan to separate the sharia business unit.
The EGMS resulted in an agreement that the sharia units would be separated by transferring the entire portfolio of the company’s memberships to sharia insurance companies that have obtained business licenses from the Financial Services Authority (OJK).
“About POJK 67 of 2016,” wrote management.
In the EGMS, 99.86% of the people present agreed with the changes to the work plan. Meanwhile, the rest disagreed as much as 0.14%.
Furthermore, the EGMS authorizes the directors to make all the preparations needed to separate the sharia unit.
“Giving power and authority to the directors to take all necessary actions related to the decision of the meeting,” he explained.
RI Tourism Grows, What Are the Prospects for Travel Insurance?
Jakarta – Indonesia’s tourism sector has begun to grow after being affected by the COVID-19 pandemic. Data from the Central Statistics Agency (BPS) shows that from January August 2022, the number of domestic passengers increased by 92% compared to the same period in 2021.
Then, the number of passengers going abroad (international) until the beginning of the third quarter of 2022 rose 32% compared to the end of the second quarter of 2022.
During the stretching tourism sector, travel insurance is considered essential. Not only related to safety, but also to protecting against loss of goods.
“In addition to travel documents for entry requirements such as visas and passports, one thing that should not be neglected is having travel insurance that can protect yourself and your family from unavoidable unforeseen situations, such as flight delays, lost luggage, costs or medical evacuations, even losing a passport when traveling abroad, which will result in a loss of not only time but a lot of money,” said Christian Putra, Marketing Director of PT Asuransi Mitra Protector Mustika (MPM Insurance) in his statement, Friday (17/2/2023).
For domestic travel insurance, his party has a product that starts from IDR 28,000, which protects tourists by covering medical costs due to illness or accidents.
This protection for tourists includes minor matters such as flight cancellations, replacement of lost or stolen baggage, protection for medical emergencies, including medical treatment, evacuation, and repatriation, and guarantees for accidental injury and death.
There is also insurance for international travel that protects overseas travel to any destination. It covers accidental death or injury coverage, medical emergency coverage, compensation for lost or stolen baggage, reimbursement for costs related to flight cancellations, flight delays, and other travel disruptions, and many more.
International travel insurance is also a mandatory requirement for a Schengen visa if you want to travel to one of the 26 countries in Europe.
“With the optimism of the revival of tourism in Indonesia and the huge potential of the community, we hope to be able to provide consumers with better and more competitive protection options from MPM Insurance travel insurance products,” he explained.
Source: https://finance.detik.com/moneter/d-6574196/wisata-ri-tumbuh-bagaimana-prospek-asuransi-perjalanan.
This Year, Inflation and Covid-19 Can Trigger an Increase in Insurance and Reinsurance Claims
KONTAN.CO.ID – JAKARTA. Inflation and Covid-19 could trigger an increase in claims in the insurance and reinsurance industry in 2023.
Maria Elvida Rita Dewi, Finance and Actuarial Director of PT Reasuransi Indonesia Utama (Persero) or Indonesia Re, explained individual health insurance products contributed to a massive increase in claims for her party in 2022.
Apart from changes in consumer behavior, he explained, the exceptionally high increase in inflation was also the reason for the rise in claims from individual health insurance products.
Even based on an internal study that had been conducted, Vida said the increase in inflation in health costs in Indonesia was higher than in global inflation.
“In 2023, the potential for an increase in health cost inflation is still huge. Therefore, he explained that Indonesia Re had adjusted the inflation assumption in calculating health insurance premium rates,” he explained.
Vida believes that the claim that Covid-19 may still be a challenge. Even though it did not directly impact general reinsurance claims, the economic situation due to the pandemic was considered to have an impact, especially on the line of credit insurance.
Therefore, he explained, Indonesia Re had made restrictions since the beginning of 2022 for this line of business.
“However, Indonesia Re also anticipates several things that have the potential to cause claims in 2023, such as climate change, a possible recession, and other things.”
Vida revealed that the life reinsurance business portfolio at Indonesia Re was greatly affected by the surge in claims for the Delta Covid-19 variant in the fourth quarter of 2021, which came from health insurance and credit life insurance products.
The impact of these claims continues into the first quarter of 2022 due to claim delays and the Covid-19 claims that occurred last year. The majority of these claims come from health insurance products.
Nevertheless, Vida revealed that as of December 2022, the total number of claims for Covid-19 had decreased significantly compared to the realization in 2021. The entire shares for Covid-19 in 2021 reached IDR 325 billion, while in December 2022, it was recorded at IDR 98 billion.
“For the life reinsurance business line itself, the value of gross claims completed due to Covid-19 in 2022 fell to 16.29% of total claims compared to 2021 of 23.34%. This shows optimism that the impact of Covid-19 on claims is decreasing,” he said.
The impact of Covid-19, continued Vida, also affected the underwriting performance of the general reinsurance sector. Indirectly, he explained, the effect was felt on various business lines, especially the financial line, which includes suretyship and credit insurance with a claim value of around IDR 200 billion in 2021.
“As of December 2022, the credit insurance (treaty) sector still posted underwriting results minus IDR 123 billion,” he said.
Even though it has experienced a significant decline in 2022, Vida said the potential for an increase in Covid-19 claims from health insurance products is still relatively large.
“This is because the Indonesian government only covers severe symptoms of Covid-19, and the insurance company bears the treatment of moderate and mild symptoms,” said Vida.
Separately, the General Chair of the Indonesian General Insurance Association (AAUI) HSM Widodo also assessed that inflation will still be one of the industry’s challenges, particularly regarding national insurance and reinsurance claims.
“Surely [inflation is still a challenge]. From the claim side, it will greatly increase from the reinstatement affected by the claim,” he said.
In addition, he explained that inflation would affect the cost of goods sold (CoGS), or all costs incurred by companies to produce products/services, from the manufacturing stage to their distribution.
Rudy Kamdani was Elected as General Chair of AASI for the 2023 – 2026 period
KONTAN.CO.ID – JAKARTA. Rudy Hamdany from PT AXA Mandiri Financial Services was elected General Chair of the Indonesian Sharia Insurance Association (AASI) for 2023 – 2026.
The election of the new Chairperson was in a series of AASI Member Meetings. The event at The St., The Regis Hotel begins with the Annual Member Meeting (RAT), a form of accountability for managing AASI for the 2022 financial year.
This event was attended by 49 representatives of AASI member companies and Ogi Prastomiyono, the Chief Executive of OJK Non-Bank Financial Industry Supervision, who gave remarks.
After the Annual Member Meeting (RAT) results are agreed upon, the agenda continues at the Extraordinary Member Meeting (RALB). With the end of the 2020 – 2023 period chaired by Tatang Nurhidayat, the election for the 2023 – 2026 period chairman was held in this forum.
In the nomination process, there were five names nominated by AASI member companies. However, after going through the verification and confirmation process, there were only three candidates who met the requirements and were willing to be nominated as candidates for General Chair, namely Edi Setiawan from PT Capital Life Syariah, Rudy Kamdani from PT AXA Mandiri Financial Services, and Tati Febriyanti from Reinsurance Syariah Indonesia.
After the voting process, Rudy was elected to lead AASI for the next three years. Rudi expressed his gratitude for the trust of AASI members.
“AASI belongs to all member companies, so the obligation to advance sharia insurance is also the responsibility of all member companies,” said Rudy in a written statement Friday (24/2).
In conveying his vision and mission, Rudy carries ten work programs, namely: strengthening the role and function of the AASI executive director, increasing AASI collaboration at all levels of society, increasing literacy and education, strengthening the structure of the AASI secretariat, organizing Milad involving all AASI stakeholders, organizing activities together with member companies, making sharia insurance the leading choice in insurance, encouraging the implementation of spin-offs, holding appreciation for outstanding marketers and figures, and positioning sharia insurance as a driver of the halal ecosystem.
Source : https://keuangan.kontan.co.id/news/rudy-kamdani-terpilih-sebagai-ketua-umum-aasi-periode-2023-2026
Collaborating with AXA Mandiri, Bank Mandiri Taspen Provides Debtor Life Protection
Jakarta – PT AXA Mandiri Financial Services (AXA Mandiri) and PT Bank Mandiri Taspen announced a strategic collaboration in credit life insurance protection for Bank Mandiri Taspen debtors. With the inauguration of this cooperation agreement, Bank Mandiri Taspen debtors will benefit from coverage and protection from AXA Mandiri in facing life risks that can be experienced at any time.
“This collaboration is important for AXA Mandiri and Bank Mandiri Taspen because we commit to customer service. One of the manifestations is providing credit life insurance protection to Bank Mandiri Taspen debtors,” said President Director of AXA Mandiri, Handojo G. Kusuma, in a written statement Tuesday (21/2/2023).
Mandiri Life Credit Plus Insurance is a group credit life insurance product that protects the insured as a debtor in the event of a risk of death due to natural causes, illness, or accident. Insurance product protection that complements debtor loans will provide a sense of comfort for debtors in carrying out the payment period for their loan obligations.
The Main Director of Bank Mandiri, Taspen Elmamber P. Sinaga, said this collaboration was a concrete manifestation of partnership and synergy between Bank Mandiri’s subsidiaries to provide the best solutions for the community.
“Hopefully, this collaboration will benefit all, especially to protect debtors from various credit risks that might occur,” said Elmamber.
Elmamber hopes that the synergy between Bank Mandiri Taspen and AXA Mandiri will provide positive performance for both companies in the future.
This information is presented by L&G Insurance Broker – The Smart Insurance Broker.
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