Insurance League – Hello risk takers, in the 4th week of February 2024 we are again discussing 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.
Projections for the Growth of the Indonesian Life Insurance Industry in the Midst of Government Transition and Changing Economic Conditions
The Indonesian Life Insurance Association (AAJI) predicts that improving real sector performance will provide a positive impetus for the growth of the insurance industry, especially in the midst of the government transition this year. Apart from that, increasing public understanding and interest in insurance products is also expected to have a positive impact on the industry. “These factors are the basis for projecting an increase in premium income for the life insurance industry in 2024,” said Head of Product, Risk Management, GCG AAJI, Fauzi Arfan, to Bisnis on Thursday, February 15 2024.
Apart from real sector performance, Fauzi also highlighted that the increase in premium income will be driven by the normalization of sales of Investment Linked Insurance Products (PAYDI) after adjustments to the latest regulations which are expected to be completed this year. Overall, AAJI projects life insurance industry premium growth of 7% -10%, including for the new business sector.
To strengthen premium growth, including from new business segments, Fauzi emphasized the importance of product innovation that suits the needs of the millennial generation and Gen Z. Considering that the majority of Indonesia’s population currently consists of this generation, this is a great opportunity for the life insurance industry to be more active in reach them.
Apart from that, Fauzi emphasized the importance of strengthening governance and protecting customers to strengthen public trust in the life insurance industry. In an effort to expand the market, AAJI encourages all companies to increase comprehensive literacy activities at various levels of society, including through the use of social media which can be accessed quickly and easily. “With collaboration between associations, industry players and regulators, we are confident that more and more people will feel confident about having life insurance protection,” added Fauzi.
Tugu Insurance’s Brilliant Performance in 2023: Net Profit Soars 215% to IDR 1.25 Trillion
PT Asuransi Tugu Pratama Indonesia Tbk., or Tugu Insurance, revealed the factors causing the surge in net profit in 2023. The company’s net profit jumped 215% on an annual basis to IDR 1.25 trillion on December 31 2023, compared to IDR 397 billion in the period the same as the previous year. According to the President Director of Tugu Insurance, Tatang Nurhidayat, the increase in profit was due to the company’s operational performance and other income. Net premium income reached IDR 1.19 trillion in December 2023, reflecting 10% growth compared to the previous year. This growth also supported underwriting income which grew 11% to IDR 1.17 trillion.
Apart from that, the company’s investment returns will also increase rapidly by 76% in 2023 to IDR 392.5 billion. These things helped increase Tugu Insurance’s total business revenue to IDR 1.14 trillion in December 2023 from IDR 959 billion the previous year, showing annual growth of 19%.
Based on the financial report as of 31 December 2023, the company’s liabilities rose 16.5% to IDR 9.03 trillion from IDR 7.7 trillion as of 31 December 2022. Meanwhile, Tugu Insurance’s equity reached IDR 6.6 trillion on 31 December 2023, an increase of 18 .9% compared to IDR 5.6 trillion as of 31 December 2022. The company’s total assets also experienced a significant increase to IDR 15.7 trillion as of 31 December 2023, up 17.5% from IDR 13.3 trillion as of 31 December 2022. Investment assets increased 31 .5% to IDR 7.5 trillion, while non-investment assets rose 7.02% to IDR 8.1 trillion.
Judging from Risk Based Capital (RBC), the company’s financial health reached 570.12% on 31 December 2023, an increase from 470.02% on 31 December 2022. This RBC ratio is far above the threshold set by the Financial Services Authority (OJK) by 120%.
OJK Urges Shareholders of PT Asuransi Jiwa Adisarana Wanaartha to Return to Indonesia
The Financial Services Authority (OJK) has sent a request to Evelina F. Pietruschka, a shareholder of PT Asuransi Jiwa Adisarana Wanaartha (Wanaartha Life), to immediately return to Indonesia. Evelina F. Pietruschka is currently one of the suspects and is listed on the Wanted List (DPO). Chief Executive of OJK Insurance, Guarantee and Pension Fund Supervision, Ogi Prastomiyono, stated that OJK continues to urge Wanaartha Life shareholders to take responsibility for the company’s customers. “OJK continues to urge company shareholders to return to Indonesia and take responsibility for the situation currently occurring at PT Asuransi Jiwa Adisarana Wanaartha,” said Ogi in a written statement, as reported on Thursday (22/2/2024).
In an effort to protect consumers, OJK has carried out a supervisory function over insurance companies in accordance with applicable regulations, both during the business license period and in the ongoing liquidation process by the liquidation team, including Wanaartha Life. “OJK respects the ongoing legal process related to PT Asuransi Jiwa Adisarana Wanaartha by law enforcement,” he added.
According to the Director of Special Economic Crimes at Bareskrim Polri, Police Brigadier General Whisnu Hermawan, Interpol has issued a red notice against three suspects, including Evelina Pietruschka, Manfred Pietruschka, and Rezanantha Fadil Pietruschka, as of December 23 2022. Even though a red notice has been issued for the three, the status Evelina Pietruschka is still in DPO status. However, for Manfred and Reza, there is a possibility that they have also changed citizenship, considering that they are one family. “Evelina Pietruschka is the wife of Manfred Pietruschka, and previously, Reza, their son, studied in the United States,” explained Whisnu to Bisnis on Monday (8/1/2024).
Prudential Indonesia Launches PRUFuture Life Insurance to Reach the Young Generation
Prudential Life Assurance (Prudential Indonesia) has introduced a new conventional life insurance product called PRUFuture with the aim of attracting new customers, especially millennials and generation Z who have started their careers and have their own income. Karin Zulkarnaen, Prudential’s Chief Customer and Marketing Officer, stated that this product is specifically designed to meet the needs of young people and young families, and offers advantages that are different from other products. Even though data from the Indonesian Life Insurance Association (AAJI) shows that only around 26 million individuals out of a total of 94 million insured have insurance in the third quarter of 2023, Karin emphasized that the younger generation is increasingly aware of the importance of financial protection by setting aside a portion of their income to invest in insurance. .
According to the Empowering Aspirations: Financial Preparedness in Asia survey, 82% of millennials and generation X see insurance as an integral part of their financial planning or as a safety net. Karin also noted that around 73.7% of generation Z have thought about marriage and family, with 1.7 million marriages taking place every year in Indonesia. Thus, Prudential seeks to attract new customers from this segment by expanding the market through innovative products.
In 2023, around 65% of Prudential’s new customers will come from millennials and generation Z. Prudential is optimistic that it can continue to attract customers from this segment through this new product and hopes to increase the number of new customers, especially from these groups, by the end of the year. Meanwhile, Junaedy Aries Wijaya, Head of Product Design at Prudential Indonesia, explained that PRUFuture has five advantages, including optimal protection with affordable premiums, large premium discounts, and lifetime protection up to 120 years of age. This product is aimed at all groups, but Prudential prioritizes young families as the main target because of its simplicity.
PT Asuransi Jiwa Inhealth Indonesia Announces Plan to Acquisition a Majority of Shares by PT Asuransi Jiwa IFG
PT Asuransi Jiwa Inhealth Indonesia (Mandiri Inhealth) announced plans to acquire the majority of the company’s shares by PT Asuransi Jiwa IFG (IFG Life). IFG Life is a subsidiary of PT Bahana Pembinaan Usaha Indonesia (Persero) or BPUI, which operates under the name Indonesia Financial Group (IFG) in the life and health insurance sector. The plan to acquire 70% of the shares was announced by the directors of Mandiri Inhealth in an announcement published in the Monday edition of the Indonesian Business Daily (26/2/2024). The announcement was made in accordance with applicable legal provisions, including Article 127 paragraph (2) jo. paragraph (8) Law no. 40 of 2007 concerning Limited Liability Companies, as amended by Law no. 6 of 2023 concerning Stipulation of Government Regulations in Lieu of Law no. 2 of 2022 concerning Job Creation becomes law.
“We hereby announce the plan to acquire 70% of the shares in the Company [PT Asuransi Jiwa Inhealth Indonesia] by PT Asuransi Jiwa IFG, directly from the Company’s current shareholders, PT Bank Mandiri (Persero) Tbk. and PT Kimia Farma Tbk.,” wrote the announcement was made on Monday (26/2/2024). The address of PT Asuransi Jiwa Inhealth Indonesia is located at Mandiri Inhealth Tower, Jalan Prof. Dr. Satrio Kav. E-IV No. 6, Karet Tengsin Village, Setiabudi District, South Jakarta, DKI Jakarta.
“This acquisition plan will be subject to applicable laws and regulations, and requires approval from the Financial Services Authority,” he added. The Mandiri Inhealth Board of Directors also informed that interested parties can obtain the acquisition plan at the company office. Any objections from Mandiri Inhealth creditors or interested parties to the acquisition plan can be submitted in writing along with the reasons for the objection and supporting documents within 14 calendar days after the date of this announcement. The objection letter must be addressed to PT Asuransi Jiwa Inhealth Indonesia, Mandiri Inhealth Tower, Jalan Prof. Dr. Satrio Kav. E-IV No. 6, Karet Tengsin Village, Setiabudi District, South Jakarta, DKI Jakarta, with a copy sent to: public.relations@mandiriinhealth.co.id. According to information from the official Mandiri Inhealth website on Monday (26/2/2024), the composition of the company’s shareholders currently consists of PT Bank Mandiri (Persero) Tbk. (BMRI) or Bank Mandiri by 80%, PT Kimia Farma Tbk. by 10%, and IFG by 10%.
Alleged Motives Related to Insurance in Dante’s Death Case: Expert Response and Explanation by Tamara Tyasmara
There is one motive that is thought to be the reason behind the death of Dante, son of Tamara Tyasmara and Angger Dimas, which is related to insurance.
Financial experts also responded to the alleged motive related to insurance in the Dante sinking case by Yudha Arfandi.
Polda Metro Jaya has named Yudha Arfandi as a suspect in Dante’s death based on CCTV footage which shows Yudha drowning Dante to death.
However, there are allegations that the motive behind Yudha’s actions was to obtain an insurance claim for Dante’s death.
A financial expert gave his view on this possible motive, explaining that insurance claims can be submitted by the party who paid the insurance premium.
However, he emphasized that the insurance claim process is not easy because there are requirements that must be met.
According to him, life insurance should be taken out by parents as a form of economic protection for children if their parents die.
Legal experts also explain the various types of personal insurance, including health insurance, critical illness and life insurance.
He emphasized that policy holders can pay premiums for the insurance through other people, but the insured should have economic value that can be replaced if they die.
Although there is speculation that the motive for Dante’s death was related to insurance, Tamara Tyasmara denied this. He revealed that Dante’s insurance was no longer active and he had to cover Dante’s medical costs personally before he died.
AAUI predicts that there are 12 insurance companies that have the potential to fail to reach the minimum capital of IDR 250 billion
The Indonesian General Insurance Association (AAUI) estimates that around 12 insurance companies in Indonesia may not reach the minimum equity of IDR 250 billion by the end of 2026, in accordance with the requirements set by the Financial Services Authority (OJK). AAUI Chairman, Budi Herawan, said that despite this, his party was still waiting for the results of the implementation of PSAK 117 because it was believed that it could change the dynamics of the insurance industry in the country. AAUI is trying to overcome two main challenges, namely adjustments to PSAK 117 and compliance with regulations related to increasing capital or equity.
Herawan emphasized that AAUI is not in conflict with the OJK and supports efforts to strengthen the insurance ecosystem in Indonesia. In addition, AAUI is formulating proposals to accommodate insurance companies that may not be able to meet the minimum capital requirements set by the regulator. This effort is carried out to find solutions for companies that have the potential to not meet OJK expectations in 2028, by obtaining approval and support from the regulator.
Seleris Platform Brings a Revolution in Insurance Underwriting with AI
Seleris Platform Brings a Revolution in Insurance Underwriting with Artificial Intelligence Technology. Insurance companies in Indonesia and globally can increase efficiency, accuracy and speed in the underwriting process thanks to this platform.
Rinaldi Anwar, Founder and CEO of Seleris, said that this platform marks an important point in the development of the insurance industry. “Seleris is a future underwriting solution that will change the paradigm in life and health insurance. This platform helps insurance companies improve service to customers and business efficiency,” said Rinaldi at the launch of Seleris.
Through Seleris, insurance companies can speed up the policy issuance process, increase underwriting accuracy, and reduce operational costs. “Seleris provides a faster, easier and more transparent experience for customers and insurance agents, so more people can get the protection they need,” added Rinaldi.
Advanced features offered by Seleris include artificial intelligence-based risk assessment, underwriting automation, and the use of chatbots.
Source: https://www.beritasatu.com/ekonomi/2801674/ai-merevolusi-industri-asuransi-jiwa-dan-kesehatan
This article is brought to you by L&G Insurance Broker, an insurance broker Indonesia..
—
LOOKING FOR INSURANCE PRODUCTS? DON’T WASTE YOUR TIME AND CONTACT US NOW
24 JAM L&G HOTLINE: 0811-8507-773 (CALL – WHATSAPP – SMS)
website: lngrisk.co.id
Email: customer.support@lngrisk.co.id
—
