Liga Asuransi – Hello risk takers, in the first week of May 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.
PT Asuransi Asei Indonesia: Superior Performance in 2023 Despite Heavy Challenges
PT Asuransi Asei Indonesia, one of the main players in the Indonesian insurance industry, managed to record impressive performance in 2023 even though it was faced with various significant challenges. Through its recently released financial report, this company shows its ability to manage risk and maintain financial stability amidst complex market dynamics.
Profit Growth and Decrease in Premium Income
2023 will be a historic year for PT Asuransi Asei Indonesia by recording positive underwriting results of IDR 119 billion, reflecting a significant increase of 20.7% on an annual basis from the previous year. However, there was a quite striking decline in the company’s premium income, which fell by 41.2% year-on-year (yoy) to IDR 288 billion from IDR 491 billion in the same period the previous year.
Operational Efficiency and Liability Management
Even though premium income experienced a significant decline, PT Asuransi Asei Indonesia succeeded in managing operating expenses efficiently. The total operating expenses borne were successfully reduced to IDR 91.4 billion, showing a decrease of 8.3% yoy from the previous year. On the other hand, the company also succeeded in controlling the increase in liabilities, although it still recorded an increase of 10.25% yoy to IDR 1.36 trillion in 2023.
Asset and Equity Performance
In terms of assets, PT Asuransi Asei Indonesia shows stable growth, with total assets reaching IDR 2.3 trillion in 2023, an increase of 4.72% yoy from the previous year. However, there was a decrease of 5.13% in the company’s equity, reaching IDR 466 billion compared to the previous year which reached IDR 491 billion.
Financial Health Evaluation
The company’s financial health level, measured through Risk Based Capital (RBC), shows a significant downward trend. The company’s RBC level reached 265.38% in 2023, a decrease compared to 328.14% in the previous year. Despite this, PT Asuransi Asei Indonesia is still able to maintain its position in the market well.
Sharia Business Unit Performance
On the Sharia Business Unit (UUS) side, PT Asuransi Asei Indonesia also recorded impressive performance. Profit from the company’s sharia insurance increased to IDR 7.5 billion, an increase of 413.2% compared to the previous year. However, there was a significant increase in insurance expenses, reaching IDR 2.4 billion in 2023, an increase of 1,245% from the previous year.
Future Challenges and Projections
Even though it has managed to record positive performance, PT Asuransi Asei Indonesia is still faced with various challenges in the future. Companies will need to continue to improve operational efficiency and optimize risk management strategies to face changing market dynamics. With a strong foothold and commitment to quality service, PT Asuransi Asei Indonesia is optimistic about continuing to develop and become a leader in the country’s insurance industry.
Facing a Safer Future with Mandatory Insurance in Indonesia
Exactly on January 12 2023, Indonesia entered a new era in developing and strengthening the financial sector through the enactment of Law Number 4 of 2023 concerning Development and Strengthening of the Financial Sector (UU P2SK). This law is an important milestone in supporting efforts to develop the financial sector as a whole by combining various regulations into one comprehensive regulation, including Law Number 40 of 2014 concerning Insurance.
One of the innovations promoted by the P2SK Law is the establishment of a mandatory insurance program, which will provide protection to all or certain groups in society from certain risks. This program not only provides basic protection, but is also designed to realize the principles of financial inclusion in a more effective way.
Focus on Third Party Legal Liability (TPL) Lakalantas Insurance
One of the important points in the implementation of the P2SK Law is the implementation of mandatory insurance, especially in the context of third party legal liability insurance (TPL) related to traffic accidents (Lakalantas). This is important considering the high level of traffic accidents in Indonesia.
The government together with the regulator, the Financial Services Authority (OJK), are currently drafting a Government Regulation (PP) regarding mandatory insurance, which is targeted to be issued in 2024. The main aim is to ensure that the norms regulated in the PP can be implemented effectively, including in terms of Affordable premium determination, easy premium quotation process, and efficient claim settlement.
Future Challenges and Projections
While these measures are highly desirable to increase the level of public protection, the challenges faced are not insignificant. The insurance penetration rate which is still low, only 2.27% in 2022, as well as the insurance density level which is not yet optimal, shows that there is still a lot of work that needs to be done.
OJK has set ambitious targets through the 2023-2027 Indonesian Insurance Development and Activity Roadmap, namely increasing insurance penetration to 3.2% and increasing density levels to reach IDR 2.4 million per resident. To achieve this target, cooperation between the government, regulators and insurance industry players is needed to educate the public about the importance of having insurance protection.
Hope for a Safer Future
It is hoped that the issuance of government regulations regarding mandatory insurance will be a significant first step in improving road safety and providing better protection for all parties concerned. By prioritizing the principles of transparency, justice and inclusion, we can create a safer and more prosperous environment for all Indonesian people.
As a country committed to improving the quality of life of its people, the implementation of mandatory insurance is an important instrument in achieving this goal. Hopefully, with solid cooperation between the government, regulators and industry players, Indonesia can become an example in implementing mandatory insurance that is effective and inclusive for all its people.
Jasindo Insurance Records Solid Profit Growth Amidst Economic Challenges
Jakarta, 25 April 2024 – PT Asuransi Jasa Indonesia (Asuransi Jasindo) reported solid achievements in its financial report for 2023, despite being faced with significant economic challenges. President Director of Asuransi Jasindo, Andy Samuel, stated that the company’s net profit reached IDR 102.88 billion, marking impressive performance amidst a dynamic business environment.
This profit is recognized as a direct result of the core competence of the Jasindo Insurance business. This marks a strategic change from the previous year, where the company took corporate action to revitalize the company through divestment of shares in several entities.
Andy Samuel emphasized, “Jasindo’s performance growth in 2023 must be seen comprehensively, continuously and comprehensively. We continue to strengthen the company’s core competence, especially in superior products such as Property, Marine, Energy, Engineering, Aviation and Liability.”
Jasindo Insurance’s Director of Finance and Investment, Jhon Harlen Butar-Butar, added that the company’s underwriting results increased by 44.30% year-on-year to IDR 420.50 billion, while gross premiums were still moving up by 2.43% year-on -year to IDR 3.17 trillion.
However, the company also faced several challenges, especially in investment returns which decreased by 52.89% year-on-year to IDR 226 billion. However, Asuransi Jasindo has succeeded in managing its financial health well, as evidenced by the increase in the Risk Based Capital (RBC) level to 159.10%.
In its future vision, Asuransi Jasindo is committed to continuing to strengthen its core competence, increasing operational efficiency, and providing added value for policyholders and other stakeholders. With the right strategy, companies are ready to face challenges and opportunities in the future.
Vehicle Insurance Premium Income Reduces, Claims Increase in Quarter I/2024
Jakarta, 30 April 2024 – The Indonesian General Insurance Association (AAUI) recorded a slowdown in vehicle insurance premium income in the first quarter of 2024, which was triggered by a decline in car sales. Meanwhile, total vehicle insurance claims will increase until March 2024.
According to the Executive Director of AAUI, Bern Dwyanto, the increase in claims was mainly caused by inflation in spare part prices. Nevertheless, Bern said that overall, vehicle insurance premium income was still positive despite experiencing a slowdown. “Premium income has also increased, although it is slowing down,” he told Bisnis on Monday (29/4/2024).
Bern also explained that projections for this year were still waiting for first quarter performance data to see the trend more clearly. However, he emphasized that vehicle, property and credit insurance remains the largest contributor to the general insurance industry.
Data from the previous year shows that motor vehicle insurance will experience growth throughout 2023, with a total premium collection of IDR 19.497 trillion. This growth is supported by the growth of the financing industry sector, the majority of which is motor vehicle financing.
However, data from the Association of Indonesian Automotive Industries (Gaikindo) shows a decline in wholesale car sales of 23.9% and retail sales of 15% in the first quarter of 2024 when compared to the previous year.
AAUI continues to collect and analyze data for the first quarter of 2024, and will provide further projections as the economic and industrial situation develops.
PT Asuransi Ramayana Tbk. Announces Cash Dividend Distribution of IDR 19.78 Billion for 2023
Jakarta, 7 May 2024 – PT Asuransi Ramayana Tbk. (ASRM) announced plans to distribute cash dividends of IDR 19.78 billion for the 2023 financial year to shareholders, following the results of the company’s Annual General Meeting of Shareholders (AGMS) on April 23 2024. The company’s profit throughout 2023 reached IDR 89 billion, an increase of 17, 35% year-on-year compared to the previous year.
According to information from the company, dividends per share will reach IDR 65, and will be distributed to shareholders whose names are registered in the company’s shareholder register until Monday, May 6 2024 at 16.00 WIB. Dividend payment is scheduled for May 22 2024, while cum dividends in the regular market and negotiated market will be made on May 2 2024. The ex-dividend date in the regular market and negotiated market is May 3 2024, while the ex-dividend date in the cash market is May 7 2024.
The unrestricted retained earnings balance reached IDR 69 billion. The company recorded equity worth IDR 677 billion in 2023, an increase of 10.5% year-on-year. The company’s total assets also increased by 13.82% year-on-year to IDR 1.9 trillion in the same year.
In terms of financial health, Ramayana Insurance recorded a Risk Based Capital (RBC) level of 193.57% in 2023, still above the provisions of the Financial Services Authority (OJK) with a threshold of 120%.
This decision to distribute cash dividends marks Ramayana Insurance’s commitment to providing added value to its shareholders, as well as maintaining the company’s financial health. With solid achievements, the company is optimistic about continuing to provide the best service to customers and improving performance in the future.
PT Asuransi Jiwa IFG (IFG Life) Saves the Environment by Planting Mangroves at Pantai Indah Kapuk
Jakarta, 6 May 2024 – As many as 25 companies from the insurance industry have joined efforts to preserve the environment by planting mangroves in the Pantai Indah Kapuk (PIK) ecotourism area, Jakarta. PT Asuransi Jiwa IFG (IFG Life) participated in this activity as a real form of concern for environmental sustainability.
In collaboration under the auspices of the Indonesian Life Insurance Association (AAJI) and the Mangrove Indonesia Lestari Foundation, IFG Life Corporate Secretary, Gatot Haryadi, stated that the company really appreciated this activity. According to him, participation in mangrove planting not only confirms IFG Life’s commitment to the environment, but also reflects the concern of all insurance industry players for natural sustainability.
“Mangroves not only provide habitat for various biological species, but also play an important role in maintaining the balance of coastal ecosystems,” said Gatot, highlighting the ecological benefits provided by mangroves. He also added that planting mangroves in Jakarta has a significant social and economic impact on local communities, such as protecting coastal areas from abrasion, increasing fisheries resources, and providing economically profitable ecotourism potential.
Gatot emphasized that environmental sustainability has become one of IFG Life’s main priorities. During 2023, IFG Life has implemented a number of environmental social responsibility programs, such as improving turtle conservation facilities at Bajulmati Beach in Malang, assistance in overcoming the haze disaster in Palangkaraya, and bamboo/mangrove tree planting activities in Cermin Bajo Cave.
“We believe that environmental conservation efforts must be supported jointly by all parties to maintain the sustainability of the environment where we live. Because in the end, we will also feel the benefits,” concluded Gatot, inviting the entire community to play an active role in preserving the environment.
Great Eastern Life Indonesia Records Profit of IDR 208 Billion, Announces New Board of Directors
Jakarta, 4 May 2024 – PT Great Eastern Life Indonesia, the leading life insurance company in Indonesia, announced brilliant achievements in 2023 by recording a net profit of IDR 208 billion. In a press release issued today, Nina Ong, President Director of Great Eastern Life Indonesia, expressed her pride in this achievement.
According to audited financial reports, Great Eastern Life Indonesia managed to collect total premiums of IDR 3.7 trillion, an increase of 17% from the previous year. Meanwhile, the company’s total assets grew to IDR 12.2 trillion, up 23% from 2022. Great Eastern Life Indonesia’s capital adequacy level also remained strong, recording an RBC (Risk-Based Capital) of 326%, far above the minimum ratio required. required by the Financial Services Authority (OJK).
“Nina Ong revealed that Great Eastern Life Indonesia’s positive achievements are not only a success for the company, but also a motivation to continue to improve the quality of products and services,” said the company’s press statement.
In addition to proud financial achievements, Great Eastern Life Indonesia also announced the latest composition of directors as part of a strategy to increase competitiveness in the market. Nina Ong officially serves as President Director replacing Clement Lien Cheong Kiat who has completed his duties during his 9 years of leadership. Apart from Nina Ong, two new directors, Roy Hendrata and Hana, were also appointed to join the board of directors of Great Eastern Life Indonesia.
Nina Ong, who has more than 20 years of experience in the insurance industry, was welcomed by the industry on her appointment as President Director. “We believe that with the new board of directors, Great Eastern Life Indonesia will further develop and make a positive contribution to Indonesian society,” said Nina Ong.
With brilliant achievements and a strong commitment to continue to innovate, Great Eastern Life Indonesia confirms its position as one of the leaders in the life insurance industry in Indonesia.
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