Liga Asuransi – The Indonesian insurance industry continues to exhibit exciting dynamics, from product innovations and strategies to expanding protection to the challenges of maintaining growth amidst global economic conditions. A variety of updates emerge from this sector—from breakthroughs in automated claims for disaster insurance, state asset protection, to strategic moves by major insurance companies to strengthen their positions. The following news provides a comprehensive overview of the direction of development in the national insurance industry, which is increasingly relevant to the needs of the public and the business world.
Sharia Literacy Rises, But Inclusion Lags! Prudential Has a Smart Strategy to Expand Protection
According to the 2025 OJK National Survey on Financial Literacy and Inclusion (SNLIK), sharia financial literacy rose from 39.11% in 2024 to 43.42% in 2025. Unfortunately, the inclusion rate only slightly increased, from 12.88% to 13.41%. In fact, sharia insurance penetration has yet to reach 1%.
This situation emphasizes that innovation and expanding access to sharia protection are crucial for wider community benefit.
Chief Customer Marketing Officer Prudential Syariah, Vivin Arbianti Gautama, emphasized that innovation is not just about launching new products, but ensuring that the products truly provide benefits according to participants’ needs at affordable prices.
“We are committed to providing relevant, affordable, and beneficial sharia-compliant protection solutions, while also promoting access to healthcare for the Indonesian people,” Vivin said on Sunday (September 14, 2025).
Prudential Syariah itself has successfully maintained its position as the industry leader with total assets of IDR 7 trillion. Contributions in the second quarter of 2025 (year to date) also increased 3% to IDR 1.9 trillion compared to the same period last year. Furthermore, claims compensation and benefits disbursed reached IDR 1 trillion—a tangible manifestation of the principle of mutual assistance among participants.
To meet community needs, Prudential Syariah continues to strengthen its product portfolio. Some of its flagship products include:
- PRUCritical Trust– life protection solutions.
- PRUSafar Plan– Sharia protection for the preparation and implementation of the Hajj pilgrimage.
- PRUWell Medical Syariah– health protection with a fair price concept (fair pricing).
- PRUSehat Syariah– innovative products for the younger generation.
Distribution is also a key focus, not just products. With the support of over 80,000 Sharia-compliant marketers and the expansion of bancassurance channels with Bank Syariah Indonesia (BSI), Prudential Syariah can now reach more than 20 million BSI customers.
In terms of literacy, the company launched the Sharia Knowledge Center (SKC) and expanded its digital education program, reaching over 3 million people. Furthermore, strategic collaborations with communities, universities, and major Islamic organizations such as Nahdlatul Ulama (NU), Muhammadiyah, and Al-Azhar have benefited approximately 300,000 people through social and educational programs. Vivian concluded,
“We believe that Sharia-based protection can be a crucial pillar for public welfare. Therefore, we will continue to innovate, expand distribution, and strengthen collaborations so that more people can benefit from Sharia-compliant protection.”
Here’s How Sinar Mas Insurance Protected the Nusantara Lima Satellite Upon Launch
PT Asuransi Sinar Mas (ASM) has once again demonstrated its leadership in the insurance industry by underwriting the launch of PT Pasifik Satelit Nusantara (PSN)’s Nusantara Lima satellite. ASM Director Dumasi M M Samosir revealed that the company has already covered three PSN satellites, including this latest one.
To maintain financial security, ASM collaborates with PT Reasuransi Nusantara Makmur (Nusantara Re) as a local partner and with Marsh Re, which connects with international reinsurance companies. The policy issued is a Satellite In Launch policy, which covers risks from launch until the satellite reaches orbit. After that, coverage will transition to a Satellite In Orbit policy.
“The Satellite In Launch Policy covers all losses, both partial and total losses,” Dumasi explained.
However, the launch of the Nusantara Lima Satellite, planned to use SpaceX’s Falcon 9 rocket, was postponed for the second time on Tuesday (September 9, 2025) Florida time, United States. The reason was that the US space agency, through the Air Force, did not grant liftoff clearance because the weather was deemed too risky. PSN CEO Adi Rahman Adiwoso said the decision was made just 30 seconds before the rocket was scheduled to launch.
Senior insurance expert Julian Noor emphasized that satellite launches fall into the giant risk category. He believes local insurance companies have limited capacity to cover them, so international reinsurance is always involved. He believes that ideally, satellite insurance in Indonesia would be conducted through a consortium with the support of specialized satellite experts.
Are State Assets Threatened by Riots and Disasters? This Is the Importance of State-Owned Enterprise Insurance!
Recently, Indonesia has been rocked by various events that have the potential to cause significant losses to the state. These include demonstrations that have turned into riots and damaged public facilities, and the threat of natural disasters such as earthquakes, which could strike at any time. This phenomenon serves as a stark reminder that State Property (BMN) must be insured.
The Chairman of the Indonesian General Insurance Association (AAUI), Budi Herawan, emphasized that ideally, all state-owned assets should be protected by insurance. Unfortunately, the reality on the ground is far from ideal. Some of the main challenges faced include:
- Budget limitations to pay the premium in full.
- Under insurance, where the insured value is not commensurate with the actual asset value so that the claim is not maximized.
In fact, according to Budi, with state-owned assets insurance, the state can avoid sudden budgetary burdens in the event of asset damage. Furthermore, the post-incident recovery process will be faster, more measurable, and the state’s financial risks will be more manageable.
Downward Trend: Only 56 Ministries/Institutions Participate in State-Owned Enterprise Insurance
As of June 2025, only 56 ministries/institutions had insured their assets through the State Property Insurance (ABMN) program. This figure actually decreased compared to the end of 2024. This is despite the fact that the number of state assets continues to grow and the risks involved are increasingly complex.
Insurance Consortium Support
Dody Dalimunthe, President Director of PT Asuransi Asei Indonesia, also part of the ABMN consortium, emphasized that all vital state assets should be insured. The reasoning is simple: if assets are damaged, financial losses can be substantial, and public services can be disrupted.
However, Dody added that the protection scheme still adheres to the principles of priority and is phased, given the state budget constraints. Currently, Asei and its consortium are protecting state assets such as ministry/institution office buildings, educational and healthcare facilities, and public infrastructure.
Premium Sources and Protection Schemes
Interestingly, BMN insurance premiums are sourced from the state budget (APBN), through the budgets of each ministry/institution. These premium funds are managed by an insurance consortium, which currently includes 59 insurance and reinsurance companies. The risks covered are then distributed according to the companies’ capacities, with a portion passed on to reinsurers.
Program BUMN The program itself has been running since 2019 and is one of the government’s important strategies to maintain the continuity of public services even in the event of disasters or riots.
Why is BMN Insurance Crucial?
- Avoid state losses due to asset damage.
- Speed up the post-damage recovery process.
- Controlling state financial risks.
- Ensuring that public services continue to run even if disruptions occur.
Conclusion
With the risks of riots, fires, and even earthquakes becoming increasingly real, protecting state assets through the State Property Insurance program is no longer an option, but rather an urgent need.
Source: https://keuangan.kontan.co.id/news/belum-semua-aset-barang-milik-negara-diasuransikan
Good News! Next Year, Disaster Insurance Claims Can Be Disbursed Automatically Without a Survey
The Indonesian insurance industry is preparing to introduce a new product considered revolutionary. Insurance and reinsurance companies, along with the Financial Services Authority (OJK) and relevant associations, are developing a national-scale parametric disaster insurance program. This product is targeted for official launch in 2026.
Head of the Industry Research Department of PT Reasuransi Indonesia Utama (Indonesia Re), Fiza Wira Atmaja, revealed that the development of parametric insurance has been ongoing for the past year. Indonesia Re itself is one of the companies actively involved in the study.
“This is a joint government initiative. We are developing national-scale parametric insurance, with the target of implementing it by 2026,” said Fiza (August 17, 2025).
What is Parametric Insurance?
In contrast to conventional insurance which pays claims based on the results of physical damage surveys in the field, parametric insurance pays claims automatically based on certain parameters, for example rainfall or earthquake magnitude.
This means that disbursement of funds no longer requires a lengthy loss investigation process. For example, if an area is flooded due to extreme rainfall, claims will be paid out at a higher rate than in areas with lower rainfall.
The main goal is not to compensate for the loss of property or lives, but rather to provide emergency response funds so that disaster management can be carried out immediately.
Development Progress and Challenges
Fiza explained that the parametric insurance product design is currently complete, but still requires several revisions and adjustments. Some aspects currently being reviewed include:
- The premium amount is appropriate to the risk.
- Claim payment scheme based on parameters.
- The portion of risk to be insured, both domestically and in the international market.
“The product design is already in place, just a few revisions are needed. We’ve already shared it with the international market,” he added.
Why is it important for Indonesia?
As a country prone to disasters, from earthquakes and floods to volcanic eruptions, Indonesia requires a fast, transparent, and targeted financial protection scheme. Parametric insurance is considered a potential solution because:
- Speed up the disbursement of funds when a disaster occurs.
- Reducing the burden on the APBN in financing emergency disasters.
- Providing financial certainty for local governments, institutions, and affected private parties.
Conclusion
If all goes according to plan, Indonesia will have its first national-scale parametric disaster insurance product by 2026. With a data-driven claims system, rather than damage surveys, it is hoped that disaster management will be more responsive and efficient, providing maximum protection for the public.
Indonesian Exports Threatened with Default? Trade Insurance a Powerful Weapon to Face Global Risks!
Amid global economic uncertainty that could disrupt national export flows, trade insurance plays an increasingly vital role. This protection product not only protects businesses from the risk of default but also increases the competitiveness of Indonesian exports in the global market.
President Director of PT Asuransi Asei Indonesia, Achmad Sudiyar Dalimunthe, emphasized that insurance protection is a strategic solution for exporters facing various risks, both due to commercial and political factors.
“Trade insurance not only protects businesses from the risk of default, but also serves as a catalyst for increasing national export competitiveness,” he said in Jakarta on Wednesday (August 20, 2025).
Global and Sharia Collaboration
Asei Insurance itself has actively collaborated with various parties in the export ecosystem, such as the Indonesian Export Financing Institution (LPEI), the International Islamic Trade Finance Corporation (ITFC), and the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC).
This collaboration not only strengthens protection but also opens up opportunities for Sharia-based financing, especially for MSMEs.
Globally, Asei, which is a subsidiary of PT Reasuransi Indonesia Utama (Persero), is also connected with Aman Union and Berne Union, two large associations that oversee international credit insurance and export financing companies.
Insurance Industry Performance Continues to Grow
Data from the Financial Services Authority (OJK) shows that total insurance industry assets reached Rp1,163.11 trillion as of June 2025. In terms of premiums, the commercial industry grew 0.65% to Rp166.26 trillion, while general insurance premiums rose 5.84% to Rp58.50 trillion in the second quarter of 2025.
Meanwhile, Asuransi Asei recorded impressive performance with premiums of Rp234.20 billion as of August 2025, up 42.76% compared to the same period last year.
A Great Opportunity is in Front of Our Eyes
Through the 2023–2027 Roadmap for the Development and Strengthening of Indonesian Insurance, the Financial Services Authority (OJK) targets an increase in national insurance penetration from 2.27% in 2022 to 3.2% in 2027.
This target presents a significant opportunity for trade insurance to play a stronger role in maintaining the sustainability of Indonesian exports, particularly amidst the risky dynamics of the global economy.
Car Submerged in Bali Floods? Insurance Claims Soar, Be Careful If Your Policy Doesn’t Have Extended Coverage
PT Asuransi Astra Buana reported a surge in vehicle insurance claims due to the floods in Bali. As of Friday (September 12, 2025), the company had received dozens of claims, a significant increase compared to just a few dozen the previous day.
Head of PR MarcommLaurentius Iwan Pranoto, Head of Events at Astra Insurance, emphasized that flooding is not automatically covered by standard policies. Natural disaster risks like flooding can only be claimed if the customer has added extended coverage to the policy.
“Make sure your policy includes extended flood coverage, otherwise your claim may be rejected,” Iwan emphasized. He assured that any claims already submitted would be promptly addressed, either through repairs or replacement.
In addition, Iwan also shared emergency steps when the car is submerged in flood water:
- Make sure the vehicle is in a safe position.
- Disconnect the negative battery cable to prevent short circuits.
- Check the condition of the oil because it has the potential to be mixed with water.
- Do not start the engine when the vehicle is submerged.
From a business perspective, Asuransi Astra’s performance remains solid. Gross premium income as of July 2025 reached Rp5.44 trillion, an 11% increase compared to the previous year. Meanwhile, gross claims were recorded at Rp2.35 trillion.
Meanwhile, data from the National Disaster Management Agency (BNPB) indicates that flooding in Bali has claimed 14 lives, left two missing, and displaced more than 562 residents. Flooding has been recorded in 120 locations, with Denpasar being the most affected area (81 locations). The disaster was also exacerbated by landslides in 18 locations. Minister of Environment and Forestry Hanif Faisol Nurofiq stated that initial indications of the flooding were clogged drainage during two days of extreme rain.
Commercial Insurance Premiums Slump, but OJK and Industry Remain Optimistic About Year-End Recovery
The Financial Services Authority (OJK) recorded only a slight increase of 0.77% to Rp 194.55 trillion in commercial insurance premiums as of July 2025. Iwan Pasila, Deputy Commissioner for Supervision of PPDP (Insurance and Insurance Supervision), attributed this weak growth to economic conditions and seasonal factors. However, he expressed optimism that there would be a surge at the end of the quarter, consistent with the trend in previous years.
“Companies must remain disciplined in managing risks, policy benefit obligations, and investment policies,” Iwan emphasized.
Purchasing power pressures are also considered a major contributing factor. Togar Pasaribu, Executive Director of the Indonesian Life Insurance Association (AAJI), acknowledged that new premiums have decreased, but continuing premiums have actually increased by 6.1%, with the number of insured increasing by 8.8% compared to last year. He believes traditional products will continue to support industry growth, which is expected to grow 6.5% year-on-year in the first half of 2025.
According to Togar, the key to industry sustainability is strengthening the portfolio in line with purchasing power, expanding digital channels, and establishing strategic partnerships. “With solid risk management, claims control, and operational efficiency, we are optimistic that the industry will continue to grow,” he said.
Budi Herawan, Chairman of the Indonesian General Insurance Association (AAUI), believes that weak public purchasing power due to the national economic downturn is the primary factor contributing to premium stagnation. He remains uncertain whether the premium growth target can reach above 1% by the end of the year.
Meanwhile, insurance observer Dedy Kristiyanto predicts that life insurance premiums will only grow 0–3% in 2025. He believes there has been a shift in interest from unit-linked to traditional products. Therefore, companies are required to adapt to regulations, aggressively develop digital channels, and offer relevant products.
In detail, life insurance premiums actually decreased 0.84% to Rp103.42 trillion in July 2025. Conversely, general insurance and reinsurance premiums grew positively by 2.67% to Rp91.13 trillion. Commercial insurance claims recorded Rp123.25 trillion, a 5.41% decrease from the previous year.
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From these reports, it’s clear that the insurance industry in Indonesia is moving toward innovation, collaboration, and expanding more inclusive access. Challenges remain, ranging from low literacy and consumer purchasing power to complex global risks, but the opportunities for driving sustainable growth are also significant. In facing these changes, the role of insurance brokers is increasingly crucial in bridging client needs with the best protection solutions. L&G Insurance Broker presents as a trusted partner ready to help businesses, institutions, and individuals in obtaining the most appropriate, effective, and appropriate insurance protection according to their needs.
