Liga Asuransi – Hello risk takers, in the 3rd week of January 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 the third week of January 2024, we are again collecting 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.
AAUI Reviews Electric Vehicle Insurance Premium Rates, Intensive Coordination with OJK
The Indonesian General Insurance Association (AAUI) is conducting an in-depth study regarding the calculation of premium rates for electric vehicle (EV) insurance products. According to the Executive Director of AAUI, Bern Dwiyanto, this study is important considering the limited data on electric vehicles in Indonesia at this time. Dwiyanto emphasized that AAUI is actively coordinating with the Financial Services Authority (OJK) in discussing premium tariff regulations for electric vehicles.
In this coordination, AAUI also discussed the application of insurance for electric vehicles, which currently still use conventional car insurance products. Dwiyanto emphasized that discussions on electric vehicle premium rates are still in the early stages, and the latest data on electric vehicle trends in Indonesia is a key factor in these calculations.
Even though the growth of electric vehicles shows a positive trend, AAUI and OJK are still trying to find effective solutions regarding the application of premium rates. Several insurance companies, such as PT Asuransi Wahana Tata (Aswata), admit that there is growth in premium income from electric vehicles, although on a scale that is not yet significant.
OJK itself, which is also working on a similar study, understands the difference in the insurance value of electric vehicles and conventional vehicles. Chief Executive of the OJK Insurance, Guarantee and Pension Fund Supervisor, Ogi Prastomiyono, explained that determining the insurance value and total loss for electric vehicles is the focus of regulations. This point includes consideration of battery components that have a certain age or useful life.
Until now, there is no certainty when regulations regarding electric vehicle premium rates will be released. However, intensive coordination between AAUI and OJK reflects a commitment to align regulations with the dynamics of the growth of the electric vehicle industry in Indonesia.
Dual Protection for SPORC: Increasing Welfare and Commitment to Environmental Conservation
Deputy Minister of Environment and Forestry (LHK), Alue Dohong, announced that the Rapid Response Forestry Police Unit (SPORC) will receive double protection through the provision of insurance. SPORC, as a special officer responsible for preserving forest areas and the environment, will receive additional life insurance as a form of further protection.
Alue Dohong emphasized that SPORC, with its special task of protecting forest area functions from various crimes, is faced with high occupational risks. Even though SPORC already has conventional insurance, increasing protection with life insurance is expected to provide extra security, especially considering the workload and risks faced by officers.
Providing life insurance as double protection is considered an effort to further ensure the welfare of the families of SPORC officers. Alue Dohong stated that this step was part of the government’s commitment to strengthening human resource capacity and improving the welfare of SPORC.
This decision reflects appreciation for the hard work of SPORC officers who are fighting to keep forest areas sustainable. Alue Dohong emphasized the importance of continuing to improve the quality and quantity of law enforcement in the environmental and forestry sectors. SPORC is reminded not to feel complacent and to continue to strive to improve their capabilities and understand territorial control in their respective work areas as part of their responsibility to the environment.
Source: https://lampung.antaranews.com/berita/713781/sporc-akan-dapat-proteksi-ganda-melalui-asuransi
Easy and Affordable Health Protection: BRILife Offers Life Insurance Starting from IDR 5,000 Through BRImo
Health is an invaluable wealth, and health protection is a priority for many people. Apart from a healthy lifestyle, financial protection with insurance is also a smart step. According to Goodstats, the Jakpat pollster noted that 86% of 338 respondents chose health insurance as their main insurance product.
Health insurance not only provides financial protection for medical treatment costs, but also reduces the financial burden in situations of illness or accident. In addition, life insurance is an option to provide financial protection for the family if the insurance holder dies, with 53% of respondents choosing this option.
Meanwhile, 41% of respondents see old-age insurance as a way to plan for good financial conditions when entering retirement. Vehicle insurance and education are also options at 30% and 27% respectively.
To make it easier to access insurance products, PT Bank Rakyat Indonesia (Persero) Tbk or BRI through its subsidiary, BRILife, now provides purchasing services for two life insurance products, namely Life Care Insurance and Acci Care Insurance via the BRImo application.
Acci Care Insurance provides protection benefits for customers who experience accidents, including protection benefits of up to IDR 200 million for death due to accidents and protection for total or partial permanent disability.
Meanwhile, Life Care Insurance provides protection for conditions caused by any risk, including accidents, illness or other disasters. With nominal coverage of up to IDR 250 million, this product provides the advantage of no need for a medical check-up and a wide entry age, namely 1 year to 55 years.
Another advantage is the flexibility in choosing daily, weekly and annual protection periods with affordable premiums, starting from IDR 5,000. Premium payments can be made easily using BRIVA.
For further information and orders, customers can download the BRImo application, visit the website promo.bri.co.id/main, contact WhatsApp Sabrina at 0812-12-14017, or call BRI contact 14014 or 1500017. With BRILife, health and financial protection become easier and more affordable for all.
EY Global Insurance Leader Highlights Risks and Opportunities of Generative AI in the Insurance Industry
EY Global Insurance Leader, Isabelle Santenac, highlighted a number of recognitions in the insurance industry regarding the opportunities and risks brought by artificial intelligence (AI), especially generative AI. Santenac identified key risks related to how to ensure ethical and regulatory compliant use of AI, especially in the context of data privacy laws. He also expressed concerns regarding the potential for bias in AI models and the need to ensure the security and correctness of the data used.
Despite these challenges, companies in the insurance industry continue to implement ‘proof of concept’ models for internal processes. However, there is hesitation in extending this implementation to further interactions with clients, given the risks involved.
In a recent survey conducted by EY on generative AI, it was found that the real use of this technology is still limited, not just in the insurance industry but more broadly. Santenac underscored that despite much talk and proof-of-concept experiments, large-scale implementation has yet to occur. This poses a challenge to understand how it works and the risks involved.
Santenac believes that it will take time to understand and evaluate the potential risks of generative AI because the technology is still relatively new. However, attention to this matter is very important for the insurance industry.
This article also explores the evolution of generative AI, highlighting its impact on customer behavior and brand equity. Santenac stated that AI has the potential to impact brands, both positively and negatively, and that understanding and using it properly is critical.
Liquidation of PT Wanaartha Life: Griya Makmur Product Policy Holders Paid in Full
The liquidation team of PT Asuransi Jiwa Adisarana Wanaartha (Wanaartha Life) announced its commitment to fully fulfill the rights of Griya Makmur Product policy holders according to the agreement. Policy holders who have completed their obligations will receive full payment, including handover of land and buildings for Griya Makmur Products.
In the claim settlement procedure plan issued on January 12 2024, the liquidation team gave instructions to policyholders to complete the necessary documents as proof of legal relationship with Wanaartha Life. This includes proof of payment of all obligations to the company.
Policy holders with Griya Makmur products are asked to contact the Liquidation Team Admin WhatsApp via number 081398354349 to start the claim process. Meanwhile, for policy holders with other products, payments will be made proportionally.
Chairman of the Wanaartha Life Liquidation Team, Harvardy Muhammad Iqbal, explained that payment of obligations to policyholders will be made after the period for providing confirmation of approval for the liquidation process (voting) ends on January 29 2024. Harvardy emphasized the need for policyholders to consider the available options, both through the process liquidation or other routes outside liquidation.
The voting process can be done digitally via the Wanaartha Liquidation Application, via WhatsApp admin of the Liquidation Team, or by sending a letter via registered courier to the Wanaartha Life office. Policyholders who provide approval will receive a proportional payment after the voting period ends.
Harvardy also highlighted that for policyholders who do not agree or do not provide confirmation during the voting period, their bills will be removed from the List of Provisional Recognized and Recognized Bills.
OJK Reminds 15 Insurance Companies to Immediately Fulfill Actuarial Obligations
The Financial Services Authority (OJK) revealed that 15 insurance and reinsurance companies have still not fulfilled or submitted requests for a fit and proper test of company actuaries. This number is equivalent to 10.4% of the total insurance and reinsurance companies that do not have actuaries. Of this number, 5 companies previously had actuaries but had resigned without finding a replacement.
Chief Executive of the OJK Insurance, Guarantee and Pension Fund Supervisor, Ogi Prastomiyono, stated that the existence of an Appointed Actuary in insurance business activities is a necessity to manage company assets and liabilities optimally. As of January 8, 2024, 130 of 145 insurance and reinsurance companies, or 89.6%, already have company actuaries. Of this number, 7 are still in the process of fit and proper test at OJK.
Ogi emphasized that the need for actuaries is not only in terms of numbers, but also in terms of increasing the competence and integrity of actuaries. This is crucial considering the increasing pressure on the insurance industry which is influenced by market competition and the implementation of PSAK 74.
OJK will continue to monitor the fulfillment of the Appointed Actuary and take the necessary steps to ensure the healthy growth of the insurance industry in the future with adequate risk and wealth management. The First Warning Sanction has been applied to general insurance companies that do not yet have a company actuary. OJK also called for the commitment of the Indonesian Actuaries Association (PAI) to carry out actuarial professional certification exams every month in order to speed up the fulfillment of company actuaries. The company’s compliance plan is monitored regularly, and subsequent warning sanctions will be applied to companies that have not been able to fulfill this obligation.
Mega Insurance has the ambition to increase profits before tax by 35% in 2024
PT Asuransi General Mega (Mega Insurance) has set a profit growth target before tax of 35% for this year, compared to achievements in 2023. In its financial report as of December 2023, the company recorded profit before tax of IDR 106 billion, reflecting an increase of 38.4% from the position in December 2022 which was IDR 76.7 billion.
President Director of Mega Insurance, Tomy Ferdiansah, said that the growth target will be achieved through prudent business development. The company also seeks to optimize investment asset management by targeting an increase in investment returns of 7%. Investment results in December 2023 reached IDR 52.6 billion, up 105% from the same period the previous year, with total investment reaching IDR 758 billion, an increase of 21.6%.
Tomy explained that the company’s focus will be on developing retail products that are aligned with the subsidiary PT CT Corpora. This is in line with Mega Insurance’s efforts to increase its motor vehicle and property business lines, targeting consumer bank customers, especially banks in the CT Corpora business group such as Allo Bank, Bank Mega and Bank Mega Syariah. In addition, the company will place most of its portfolio in Government Securities (SBN) to reduce credit risk and simplify transactions to maintain company liquidity.
Mega Insurance recorded premium income of IDR 1.65 trillion as of December 2023, an increase of 78.3% compared to the same period in 2022. The company’s total equity reached IDR 630 billion, an increase of 25.2%, while the liabilities covered reached IDR 1.17 trillion, up 38.6%. The company’s total assets reached IDR 1.8 trillion, showing an increase of 33.5% from December 2022.
Even though the company’s financial health level, as seen from Risk Based Capital (RBC), fell to 219.66% from 306.60%, this figure is still above the Financial Services Authority (OJK) threshold of 120%. Conglomerate Chairul Tanjung owns shares in Mega Insurance through PT Mega Corpora amounting to 99.99999957% and PT Para Rekan Investama amounting to 0.00000043%.
This article is brought to you by L&G Insurance Broker, insurance broker Indonesia..
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