Liga Asuransi – Hello risk takers, in the 3rd week of February 2024, we will once again discuss the world of insurance, because insurance is not only limited to vehicles and life, especially for business protection coverage, insurance still has a very wide reach. 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.
Tugu Insurance Records 215% Profit Jump to IDR 1.25 Trillion in 2023
PT Asuransi Tugu Pratama Indonesia Tbk. or Tugu Insurance managed to record a profit after tax of IDR 1.25 trillion in the financial report as of 31 December 2023. This increase reached 215% when compared to the same period in the previous year, which only reached IDR 397 billion on 31 December 2022.
This brilliant performance was driven by an increase in the company’s underwriting results by 1.35% year-on-year (yoy), reaching IDR 746 billion from IDR 736 billion at the end of 2022. In addition, investment results also jumped 76.5% yoy to IDR 392 billion, increased from IDR 222 billion at the end of the previous year.
Tugu Insurance’s gross premium income also experienced a significant increase, reaching IDR 4.7 trillion as of December 31 2023, an increase of 24.7% compared to the previous year which was only IDR 3.76 trillion.
In terms of liabilities, the amount covered also rose 16.5% to IDR 9.03 trillion from IDR 7.7 trillion at the end of 2022. Meanwhile, the company’s equity reached IDR 6.6 trillion on December 31 2023, an increase of 18.9% compared to the same period the previous year.
The total assets owned by Tugu Insurance also increased, reaching IDR 15.7 trillion on 31 December 2023, up 17.5% from IDR 13.3 trillion at the end of 2022. Investment assets increased 31.5% to IDR 7.5 trillion, while assets non-investment reached IDR 8.1 trillion, up 7.02% from the previous year.
Judging from the level of financial health, the company’s Risk Based Capital (RBC) ratio reached 570.12% on 31 December 2023, an increase from 470.02% on 31 December 2022. This ratio is far above the threshold set by the Financial Services Authority (OJK) by 120%.
The Impact of the 2024 General Election on the Insurance Business in Indonesia: Between Stability and Challenges
The 2024 General Election (Pemilu) in Indonesia raises projections about how the insurance business in this country will move, especially in relation to traditional and unit-linked products. However, some experts believe that the growth of new business in traditional insurance will not be greatly affected. Wahyudin Rahman, a risk management practitioner and General Chair of the Indonesian Insurance Writers Community (Kupasi), highlighted that despite fluctuations, the traditional insurance business will remain attractive to millennials and Gen Z who are aware of the need for protection, especially regarding work contract obligations.
However, for unit link products, the situation may be different. Political and economic sentiment related to new elections can influence interest rates and investment performance, which in turn impacts unit-linked products. Apart from that, product adjustments to Financial Services Authority (OJK) regulations regarding PAYDI are also a factor that influences market dynamics.
Nevertheless, insurance premium income projections show growth potential. Although the life insurance sector experienced contraction, the general insurance and reinsurance sectors experienced significant growth. Experts hope that with political stability after the general election, positive sentiment can strengthen life insurance performance and provide a growth boost of 2-3% this year.
Data from OJK shows that the general insurance and reinsurance sector has grown by 20.4% year-on-year (yoy), while the life insurance sector has experienced a contraction of 6.93% yoy. Despite this, business premiums remain a major contributor, showing potential for future growth.
PT BNI Life Insurance’s Latest Achievements: Premium Increase and Unit Link Growth Target
“PT BNI Life Insurance’s Latest Achievements: Premium Increase and Unit Link Growth Target”
PT BNI Life Insurance (BNI Life), a state-owned life insurance company, managed to record an extraordinary achievement in premium income in 2023. With total premiums reaching IDR 5.4 trillion, this company recorded an increase of 7.6% compared to the previous year, especially thanks to the increase in premiums from the employee benefits channel which will reach IDR 1.8 trillion in 2023.
According to Plt. BNI Life President Director, Eben Eser Nainggolan, said that traditional premium income remains the backbone of the company, contributing IDR 4 trillion or around 73.5% of total premium income last year. Meanwhile, even though the contribution was smaller, BNI Life unit link sales also increased by 9.4% to IDR 1.4 trillion.
For this year, BNI Life has set an ambitious target by targeting unit link premium income of IDR 1.49 trillion. This is a strategic step to target the young family customer segment and adapt products to the latest regulations. Unit link products are considered attractive for those who want life insurance protection as well as the opportunity to invest with the hope of significant growth in investment value.
By focusing on increasing unit link sales and adapting to market needs, BNI Life is ready to face challenges and strengthen its position in the life insurance industry in Indonesia.
BPJS Employment Manages Assets Wisely Towards Achieving Record Investment Results
The Social Security Administering Agency (BPJS) for Employment has recorded an extraordinary achievement in managing its assets in December 2023. With total assets reaching IDR 710.86 trillion, BPJS for Employment succeeded in allocating the majority of funds to debt instruments, reaching 72.22% of the total assets available. managed.
According to the Deputy for Communications at BPJS Employment, Oni Marbun, these debt instruments include the majority of them in the form of Government Debt Securities (SUN). Apart from that, BPJS Employment also distributes funds to other investment instruments such as deposits, shares, mutual funds, as well as property and direct investment.
In 2023, BPJS Employment managed to record investment returns of IDR 47.07 trillion, marking a significant increase compared to the previous year. For this year, BPJS Employment is targeting an even higher increase in investment returns, with hopes of reaching IDR 55.28 trillion. This is an ambitious target that indicates serious efforts to increase investment returns.
This achievement also marks the highest increase in investment returns since 2014, with an average increase in realized investment returns of IDR 2.64 trillion since its founding. With a target of realizing investment funds of IDR 812.66 trillion in 2024, BPJS Employment shows a strong commitment to managing its assets effectively for the welfare of social security participants.
OJK and AJB Bumiputera 1912 Steps towards financial health
On February 2 2024, the Financial Services Authority (OJK) held a meeting with the management of the Bumiputera 1912 Joint Life Insurance (AJB). Deputy Commissioner for Supervision of Insurance, Guarantees and Pension Funds at the OJK, Iwan Pasila, stated that the meeting involved members of the General Meeting Members (RUA), Board of Commissioners and Directors of AJB Bumiputera 1912. During the meeting, discussions were held regarding several follow-up actions that needed to be taken to ensure that the health goals of AJB Bumiputera 1912 could be carried out.
Although Iwan could not reveal the details of the meeting in detail, OJK also conveyed several complaints from customers and employees of the insurance company. These complaints are a major concern in managing the company’s restructuring program.
AJB Bumiputera 1912 management also responded to this situation. They stated that the company would make changes to the Financial Restructuring Plan (RPK) and would submit them to the OJK in mid-March this year. Hery Darmawansyah, Corporate Secretary of AJB Bumiputera 1912, explained that changes to the RPK include realistic evaluation and adjustment of plans to actual conditions. One of the changes made is optimizing company assets by selling unproductive assets into liquid assets.
Apart from changes to the RPK, AJB Bumiputera 1912 also discusses changes to the Articles of Association which are adjusted to the latest regulations. The revised Articles of Association have been submitted to OJK for approval.
These steps show the commitment of AJB Bumiputera 1912 and cooperation with OJK in carrying out the company’s financial restructuring program, so as to ensure the continuity and sustainability of the insurance company’s operations.
Chef Juna and Truck Driver Controversy on the Streets That Triggers Vehicle Insurance Considerations
A controversial video regarding an argument between famous chef Junior John Rorimpandey, or better known as Chef Juna, and a truck driver, is going viral on social media. In the video uploaded by the Instagram account @folkshitt on Sunday (11/2/2024), Chef Juna and the truck driver are seen arguing on the street.
The narration in the video states that the argument occurred because the car driven by Chef Juna and the truck driver were close to each other, which then sparked tension between the two. Responding to this case, Chairman of the Indonesian Truck Entrepreneurs Association (Aptrindo) Central Java-DIY, Bambang Widjanarko, revealed that incidents of quarrels between drivers are something that often occurs in traffic in Indonesia.
According to Bambang, high traffic density, selfish driver behavior and hot tropical weather conditions all contribute to collisions between vehicles and increased tensions on the roads. However, he emphasized that having vehicle insurance can help overcome this problem.
Bambang explained that by having vehicle insurance, vehicle owners do not need to clash with other drivers in resolving problems. Claims for vehicle damage can be submitted to the insurance company, who will take care of the entire claim settlement process.
This statement shows the importance of having vehicle insurance in dealing with unexpected road situations. Thus, protecting a vehicle with insurance can provide financial protection and peace of mind to vehicle owners in the midst of busy and risky traffic.
Insurance Claims for Paddy Fields Experiencing Puso in Mesuji
On February 14 2024, the Head of the Facilities and Infrastructure (Sapras) Division of the Mesuji Agriculture and Livestock Service, Achiri, confirmed that as many as 170 hectares of rice fields in Mesuji Regency which experienced planting and harvest failure, known as puso, had submitted insurance claims. The insurance company has carried out a survey of land damaged by flooding and it is hoped that insurance claims can be immediately reduced to be accepted by farmers.
However, there is still some agricultural land that is not covered by insurance services, so the authorities are trying to provide assistance to farmers whose fields have experienced puso. This assistance includes, among other things, rice seeds which are being submitted to the Lampung Provincial Government.
The insurance claim process does take quite a long time, starting from the claim proposal to field checks by the insurance company. Farmers are also aware of this, as expressed by one of the farmers in Sungai Badak Village, Mesuji Regency, who regretted the slowness in visiting the insurance company to check the flood location.
Inability to check paddy fields by insurance companies can have a detrimental impact on farmers, because the claim disbursement process takes longer. Many farmers want to immediately carry out land processing or plowing fields but have not been able to do so because they have not received approval from the insurance company. In fact, the water in some rice fields has begun to recede and the land processing process should be carried out immediately to catch up with the harvest period, especially considering the burden of KUR loans that must be accounted for.
In a situation like this, the importance of insurance for farmers is very clear. Flood insurance can provide important financial protection against the risk of crop failure due to natural disasters, and it is hoped that insurers can be more responsive in handling claims so that farmers can immediately get the help they need.
This article is brought to you by L&G Insurance Broker, insurance broker Indonesia..
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