Liga Asuransi – The insurance industry in Indonesia is currently facing major dynamics with various policies, trends, and the latest regulations aimed at strengthening the resilience of the financial sector while protecting the public as customers. From increasing health insurance premiums, mandatory spin-offs of sharia insurance, to plans for a policy guarantee program by the LPS, all of this indicates a fundamental transformation in the insurance industry. Behind issues often perceived as burdensome, such asco-paymentIn fact, there are serious efforts by regulators and industry players to maintain a balance between business sustainability and customer interests. To ensure that all parties can understand and make the best decisions, the role of insurance broker becomes crucial as a neutral companion and advisor. This article was compiled by L&G Insurance Broker, an insurance brokerage firm ready to assist with all your business and industrial insurance needs.
Health Insurance Premiums Predicted to Rise Next Year, Here Are 3 Main Reasons!
Health insurance premiums are expected to increase significantly next year. The main factor behind this trend is the continued surge in medical inflation. Furthermore, Julian Noor, an insurance expert and President Commissioner of Indonesia Re, highlighted another factor. He believes the decreasing number of companies selling health insurance has reduced competition.
The companies that survive are those that implement prudent underwriting or more prudent risk management. “He must consider the inflation in healthcare costs, which must be translated into premiums; there must be an increase,” Julian emphasized. Without premium adjustments, the company will face financial problems.
Julian also highlighted the high cost of healthcare in Indonesia, which is even higher than in neighboring countries like Malaysia. This is also a major driver of rising premiums.
The Role of the AAJI Medical Advisory Board and Claims Data
To address the problem of inflated and unreasonable claims, Julian revealed that the Financial Services Authority (OJK) requires insurance companies to establish a Medical Advisory Board. This board will be staffed by doctors and specialists to detect questionable claims.
Meanwhile, the Indonesian Life Insurance Association (AAJI) noted a surge in health insurance premium revenue. According to AAJI data, premiums for traditional products rose 25.3% year-on-year to Rp 19.84 trillion in December 2024. On average, total health insurance premium revenue has increased 15.9% annually over the past three years.
Despite the premium increase, the Financial Services Authority (OJK) noted that the health claims ratio actually decreased. This indicates that insurance company rate adjustments have successfully mitigated the impact of the surge in claims caused by medical inflation.
With the inevitable increase in premiums, it is important for consumers to understand that this is a step taken by insurance companies to maintain the sustainability of their business and remain able to pay claims in the future.
Source: https://wartaekonomi.co.id/read578025/ketahanan-finansial-kuat-asuransi-astra-raih-rating-a
Not Just Any Rule! Observers Reveal the Surprising Facts Behind the ObligationSpin-offSharia Insurance
Separation policy orspin-offThe Sharia Business Unit (UUS) mandated by the Financial Services Authority (OJK) is considered a strategic government measure to advance the Sharia financial industry. This policy requires large Sharia units to separate into independent Sharia corporate entities.
Insurance industry observer, Erwin Noekman, assesses thatspin-offThis is a “moment of truth.” It’s an opportunity for the public to see which companies are truly committed and capable of developing the sharia insurance business. The new company is the result ofspin-offwill be more independent, more creative in creating unique products, and have the opportunity to strengthen their image in the public eye.
However, Erwin also emphasized the importance of transparency and ethics. Oversight by the Sharia Supervisory Board and Independent Commissioners is crucial to ensuring company management complies with Sharia principles. Any non-compliance could damage public trust and negatively impact the entire industry.
Natural Selection and the Problem of Business Scale
Meanwhile, the Chairman of the College of Risk Management and Insurance (Stimra), Abitani Taim, saw the policy spin-off This is two-fold. For some companies, this is an opportunity to strengthen their competitiveness. However, for others, it can be a process of natural selection.
The main problem faced by some companies is inadequate business scale. This makes it difficult to convince shareholders of the potential of their sharia businesses. Despite this, Abitani is optimistic that spin-offs will encourage the growth of pure Islamic insurance companies, and supported by the group’s strong reputation, will further increase competitiveness.
For your information, the Financial Services Authority (OJK) noted that as of December 2023, 41 insurance and reinsurance companies had submitted plans to separate their UUS. The OJK is targeting 18 UUS to do so.spin-offin 2025, while 8 other UUS will transfer their business portfolios to other sharia companies.
Must Know! Here’s Why Office Health Insurance Is Much Better Than BPJS
Insurance expert and senior practitioner Julian Noor offers an interesting perspective on health insurance. He believes that obtaining health insurance from your employer is far more beneficial than purchasing it individually. This view is based on nearly 40 years of experience in the insurance industry.
Julian explained that companies have greater negotiating power. With a large number of employees, they can obtain better premiums and optimal service from insurance companies. “I think it’s better if the company actually covers health insurance. It’s a bit more complicated for individuals,” he said.
Julian also believes that a good company will provide health insurance for its employees, reflecting its reputation and concern for their well-being. This also impacts productivity and maintains a relatively stable claim rate. In fact, this low claim ratio can be a negotiating tool for companies to request premium reductions during contract renewals.
Three Types of Basic Insurance You Must Have
In addition to health insurance, Julian also recommends that Indonesians have three basic types of insurance for financial protection.
- Personal Accident Insurance: This insurance is relatively cheap and provides 24-hour protection, unlike BPJS Employment which only provides protection during working hours.
- Health Insurance: Complementing the basic protection from BPJS Kesehatan, this insurance is important to cover unexpected medical costs.
- Life insurance: This insurance can act as a financial safety net for families. Julian gave an example: life insurance benefits can be used to cover a child’s education costs. “This guarantee means that if we die, the insurance company will still cover our child’s education costs until they graduate,” he explained.
By having these three insurances, people can feel calmer and more protected when facing various life risks.
Don’t Be Surprised! LPS Reveals Maximum Insurance Policy Coverage Limit: Up to IDR 1 Billion?
The Deposit Insurance Corporation (LPS) continues to prepare an insurance policy guarantee program scheduled to come into effect in 2028. One crucial point still being discussed is the limit on the guarantee value to be provided.
The Chairman of the LPS Board of Commissioners, Purbaya Yudhi Sadewa, revealed that the maximum policy coverage limit is still under review. This discussion draws on experiences from various other countries. “Some say Rp 500 million is sufficient, but others say even higher. Well, the higher limit is probably between Rp 500 million and Rp 1 billion,” Purbaya said.
According to him, this discussion aims to find the most ideal values and those that suit conditions in Indonesia.
The Regulations Are Ready, Waiting for the Government’s Green Light
Purbaya confirmed that the draft LPS regulation (RPLPS) regarding policy guarantees has been completed. The LPS team has been working diligently to compile all the regulations and is now awaiting the issuance of the Government Regulation (PP) regarding this program.
With the drafting process being carried out in parallel, the LPS will not need long to ratify the derivative regulations. “As soon as the PP is issued, we will be ready within a week,” Purbaya emphasized.
LPS HR Challenges and Strategies
Even though the regulations have been finalized, LPS faces serious challenges from the sidehuman Resources (HR). According to Purbaya, finding qualified human resources to become regulators in the insurance sector is not easy.
To address this, the LPS has recruited 54 people for the insurance unit and provided intensive training to improve their quality and competency. LPS has even revised several regulations to attract more graduates with insurance expertise.
This insurance policy guarantee is mandated by Law Number 4 of 2023 concerning the Development and Strengthening of the Financial Sector (P2SK). Through this program, the LPS will guarantee insurance policies within five years of the law’s enactment, namely in 2028.
Not a Burden, Here’s the ReasonCo-paymentProtecting Insurance Customers
The Financial Services Authority (OJK) has postponed the implementation of the schemeco-paymentfor health insurance, which was previously regulated in OJK Circular Letter (SEOJK) Number 7 of 2025. This delay has drawn the attention of the Indonesian Sharia Insurance Association (AASI), which assesses the importance of proper communication to the public.
AASI Secretary, Arry Bagoes Wibowo, explained that this delay occurred because of the public impression thatco-paymentwill burden consumers. However, according to Arry, this perception needs to be corrected. “This is what really needs to be corrected,” he stressed.
Arry continued, the implementationco-paymentIt actually aims to protect consumers. This scheme makes customers aware that they cannot completely escape costs when filing a claim. This is important given the high inflation of medical and overtreatment, which directly causes health insurance premiums to continue to soar. If this trend continues without a scheme co-payment, consumers can be burdened with significant premium increases every year.
Objectives and Mechanisms Co-payment
For your information, the scheme co-payment requires customers to cover a small portion of the total claim, namely 10% of the total claim, with a maximum limit of IDR 300,000 for outpatient care and IDR 3 million for inpatient care.
This regulation was originally planned to come into effect on January 1, 2026. However, the OJK decided to postpone it after holding a Working Meeting with Commission XI of the Indonesian House of Representatives on June 30, 2025. Currently, the OJK and Commission XI of the DPR are coordinating to draft an OJK Regulation (POJK) that will replace the SEOJK.
This delay provides an opportunity for regulators and industry players to refine the regulations and conduct more effective outreach. The OJK hopes that thisco-payment, the volatility of claims can be reduced so that the increase in health insurance premium prices can be controlled and remain affordable for the public.
Why Isn’t Sharia Insurance a Top Choice? Here’s a Smart Strategy to Boost Its Growth
Indonesia, with the world’s largest Muslim population (244.7 million) and the title of most religious nation, has great potential to become a global Islamic economic leader. However, Indonesia currently ranks third in the 2023 Global Islamic Economic Indicator, behind Malaysia and Saudi Arabia. This indicates a significant gap that needs to be filled, one way being through development of sharia insurance.
Although Islamic insurance holds a strategic position within the national Islamic economic ecosystem, its role remains limited. Islamic insurance literacy and inclusion rates remain very low, at 11.7% and 1.5%, respectively. Premium contributions are also small, accounting for only 9.3% of total industry premiums in 2024. To change this, Islamic insurance must transform from a mere alternative to an option on a par with conventional insurance.
Sharia Insurance Transformation Strategy in Indonesia
Here are five key strategies that can drive the growth of sharia insurance in Indonesia:
- Apply Blue Ocean Strategy To date, many Islamic insurance products have merely replicated conventional products, trapping them in a competitive environment. To break out of this rut, the Islamic insurance industry needs to innovate and target untapped market segments, such as agricultural insurance, green insurance, and microinsurance.
- Simplify Communication and Terminology The communication approach should emphasize the universal aspects of Islamic insurance. Malaysia’s experience shows that using simple language to explain Islamic terms has proven effective in reaching a wider audience. This way, Islamic insurance can be more easily understood by all groups, without the constraints of complex terminology.
- Take Advantage of the Muslim Community Network Indonesia boasts a vast and active Muslim community. Integrating Islamic insurance education into Islamic outreach activities, religious studies, and religious forums could be a strategic step. Furthermore, the ever-growing halal ecosystem should also make Islamic insurance an integral part of the Muslim community’s financial protection system.
- Expand Distribution Channels Sharia insurance can no longer rely solely on Sharia-compliant distribution channels. Partnerships with conventional banks with extensive networks, as well as exploration of modern channels such as post offices, are essential.e-commerce, And branchless banking, will open up huge opportunities to reach a wider market.
- Overcoming Pricing Challenges The perception that sharia products are more expensive must be addressed. The industry needs to innovate in actuarial calculations to make sharia insurance premiums more competitive without sacrificing profitability. By capitalizing on the momentum of sharia policy, spin-off and capital adjustments, Islamic insurance can strengthen its position and play a more significant role in supporting inclusive and sustainable economic growth.
With these strategic steps, Sharia insurance is expected to maximize market potential in Indonesia and become a key pillar supporting the national economy.
Source: https://finansial.bisnis.com/read/20250815/215/1902786/opini-strategi-membumikan-asuransi-syariah
Not a Burden, Here’s the Reason Co-payment Protecting Insurance Customers
The Financial Services Authority (OJK) is currently drafting a Circular Letter (RSEOJK) that will regulate the business activities of insurance companies. This regulation will classify insurance companies into two categories based on equity or capital: Insurance Company Groups Based on Equity (KPPE) 1 and 2.
According to Ogi Prastomiyono, Chief Executive of the Insurance, Guarantee, and Pension Fund Supervisory Agency (PPDP) of the Financial Services Authority (OJK), the RSEOJK is a derivative of POJK No. 23 of 2023 and POJK No. 36 of 2024. Its purpose is to ensure that each company operates within its financial capacity, thereby maintaining industry stability and protecting consumers.
Under this regulation, KPPE 1 companies are only permitted to market insurance products with modest risks and low coverage amounts. Conversely, KPPE 2 companies are permitted to market all types of insurance products.
Minimum Capital and Policy Guarantee
The RSEOJK will also regulate the standardization of business lines for all types of insurance, including general, life, and sharia insurance. This standardization will serve as the basis for determining the limits of business lines that can be covered by the Deposit Insurance Corporation (LPS) Policy Guarantee Program, which will take effect in 2028.
For your information, insurance companies in Indonesia are required to meet minimum capital requirements gradually. By 2026, the minimum capital requirement is IDR 250 billion for insurance companies and IDR 500 billion for reinsurance companies.
Furthermore, in 2028, the KPPE grouping will apply with the following details:
- KPPE 1: Minimum capital of IDR 500 billion (insurance) and IDR 1 trillion (reinsurance).
- KPPE 2: Minimum capital of IDR 1 trillion (insurance) and IDR 2 trillion (reinsurance).
This regulation is a strategic step by the OJK to strengthen the national insurance industry to make it healthier and more competitive, while also providing more optimal protection to the public.
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The insurance industry in Indonesia is currently facing major dynamics with various policies, trends, and the latest regulations aimed at strengthening the resilience of the financial sector while protecting the public as customers. From increasing health insurance premiums, mandatory spin-offs of sharia insurance, to plans for a policy guarantee program by the LPS, all of this indicates a fundamental transformation in the insurance industry. Behind issues often perceived as burdensome, such asco-payment, in fact, there are serious efforts by regulators and industry players to maintain a balance between business sustainability and customer interests. This article compiled by L&G Insurance Broker, company insurance broker who are ready to help with all your business and industrial insurance needs.
