The Indonesian insurance industry is not doing well, experiencing growth on one hand but also facing pressure, scrutiny, and even a crisis of confidence. This ranges from claims now being “supervised by doctors,” to constantly revised regulations, and even the House of Representatives’ push for immediate policy guarantees.
The question is: is this a sign that the industry is getting healthier… or is it undergoing a major overhaul?
This summary of seven recent news stories clearly demonstrates the direction of change in the insurance industry: increasingly stringent, more transparent, but also increasingly complex. From the profit momentum during the Hajj season, the unit-linked controversy, to the challenges facing MSMEs and financing, all point to one thing: the industry is at a crucial juncture.
Hajj Season a ‘Golden Pit’ for Insurance! OJK Reveals Premium Surge Due to the Pilgrimage
The Financial Services Authority (OJK) assesses that the 2026 Hajj season has the potential to significantly boost travel and personal accident insurance premium growth. The increased mobility of Indonesian pilgrims since April 2026 has created a greater need for protection against various risks during their pilgrimage.
Ogi Prastomiyono, Chief Executive of the Financial Services Authority (OJK), stated that historically, the Hajj and Umrah periods have consistently contributed to increased premiums in travel insurance. The risks faced by pilgrims extend beyond health concerns to accidents and travel disruptions such as delays or cancellations.
However, despite these opportunities, the Financial Services Authority (OJK) highlighted that the number of insurance providers specifically for Hajj and Umrah is still relatively limited, both in general insurance and Sharia life insurance. This situation indicates that the market has not been optimally tapped.
However, these limitations actually create significant opportunities for the industry to develop more relevant and innovative products. As public awareness of the importance of protection during religious travel increases, this segment is considered to have promising growth potential in the future.
Source: https://wartaekonomi.co.id/read608110/ojk-prediksi-premi-asuransi-perjalanan-naik-saat-musim-haji
Credit Insurance Regulations Revamped Again? OJK Speaks Out, Industry BeginsWorried!
The Financial Services Authority (OJK) is currently evaluating the effectiveness of OJK Regulation (POJK) No. 20 of 2023, which regulates credit insurance and credit guarantees. This step was taken after the regulator received various input from industry players, both general insurance associations and guarantee companies.
OJK Deputy Commissioner Iwan Pasila stated that the regulation was initially designed to improve the credit insurance ecosystem, making it healthier and more sustainable. However, in its implementation, several aspects are still deemed in need of adjustment. One major focus is the risk-sharing mechanism between insurance companies and creditors, which is currently set at 75% to 25%.
The Indonesian General Insurance Association (AAUI) considers this evaluation a reasonable step, considering that the credit insurance sector is highly sensitive to underwriting quality, governance, and reinsurance adequacy. Furthermore, POJK 20/2023 also imposes stringent requirements, ranging from increasing minimum equity to meeting solvency ratios, liquidity ratios, and integrating technology systems with creditors.
Going forward, the industry hopes that any adjustments will maintain a balance between prudential principles, business sustainability, and the role of credit insurance as a financing support. Dialogue between regulators and industry players is considered crucial to ensure the resulting policies remain relevant and implementable.
OJK Transforms Unit Links! Tighter Transparency, Will Customers Benefit More?
The Financial Services Authority (OJK) continues to refine its Investment-Linked Insurance (PAYDI) or unit-linked products to improve performance and strengthen customer protection. This initiative focuses on reducing implementation barriers, particularly in marketing, while maintaining transparency and product alignment with customers’ risk profiles.
Ogi Prastomiyono, Chief Executive of the Financial Services Authority (OJK), emphasized that these improvements aim to ensure that unit-linked products are marketed more clearly, transparently, and without misleading information. This is crucial given that PAYDI products have frequently come under scrutiny due to their complexity and potential for miscommunication with customers.
On the industry side, Allianz Life Indonesia stated its commitment to strengthening its portfolio.unitlink, which will contribute 74% to the company’s total premiums by the end of 2025. The strategy includes product simplification, increased information transparency, and strengthened governance.
Furthermore, the use of digital technology and collaboration with investment managers are also focused on improving fund performance and customer experience. Education for customers and marketers is also being strengthened to support healthier and more sustainable growth in the future.
Health Insurance Claims Now “Doctor-Supervised”! 13 Companies Partner with DPM, Are Customers More Secure?
Thirteen insurance companies and Third Party Administrators (TPAs) have begun partnering with Medical Advisory Boards (DPMs) to strengthen the health insurance claims assessment process. This step is seen as an effort to increase objectivity and accuracy in handling claims, particularly those related to complex medical conditions.
Executive DirectorDPM PERDOKJASIDr. Dian Budiani explained that this collaboration is still in its early stages. Several major companies, including Allianz Life, Manulife Indonesia, Sun Life, and Chubb Life, have signed agreements, while others are still in the exploratory phase.
Under its mechanism, insurance companies still conduct an initial screening of incoming claims. Cases deemed to require more in-depth analysis will be forwarded to the DPM for review by a doctor or specialist in their field. This process is targeted to be completed in approximately five business days, depending on the complexity of the case.
Despite its crucial role in providing medical opinions, the DPM does not have the authority to decide on claims. The final decision rests with the insurance company. To date, no claims have been handled, as DPM operations only commenced in March 2026. This initiative is expected to increase transparency and customer trust in the health insurance industry.
Insurance Assets Continue to Rise, But Premiums Remain Sluggish? OJK Reveals the Truth!
The Financial Services Authority (OJK) projects that the Indonesian insurance industry will continue to grow positively throughout 2026, with assets expected to increase by 5–7 percent annually. Meanwhile, premium growth is projected to be more moderate, at around 3–6 percent, reflecting the ongoing consolidation phase in the industry.
Ogi Prastomiyono, Chief Executive of the Financial Services Authority (OJK), explained that the modest premium growth reflects adjustments to business models and strengthening governance following regulatory reforms. Nevertheless, public demand for protection is believed to be continuing to increase, in line with growing awareness of the importance of financial protection.
Data as of February 2026 shows that total insurance industry assets have reached Rp1,219.35 trillion, representing 6.80 percent year-on-year growth. Premium income was recorded at Rp62.37 trillion, with the largest contributions coming from life insurance and general insurance. However, life insurance premium growth was relatively stagnant, increasing only slightly by 0.12 percent.
On the other hand, the industry’s capitalization remains very strong, as reflected in the Risk-Based Capital (RBC) ratio, which is well above the minimum threshold of 120 percent. Going forward, the Financial Services Authority (OJK) is encouraging product innovation, distribution digitalization, and increased literacy to expand market penetration and maintain sustainable growth.
MSMEs Can’t Run Alone! OJK Reveals the Secret to Easier Financing Access
The Financial Services Authority (OJK) has emphasized that strengthening the Micro, Small, and Medium Enterprises (MSMEs) sector cannot be done in isolation but requires cross-sector collaboration within an integrated ecosystem. This was conveyed by OJK Executive Director of Guarantee Supervision, Asep Iskandar, who believes that synergy between parties is key to expanding access to financing for MSMEs.
According to him, this ecosystem involves various parties, including the central government, the Financial Services Authority (OJK), the financial services sector, and the Regional Financial Access Acceleration Teams (TPAKD), which have now been established in all provinces. Within this system, guarantee companies play a strategic role as liaisons between MSMEs and financing institutions.
Guarantee companies serve to increase financial institutions’ trust in MSMEs while also helping strengthen risk management. The guarantee scheme itself involves three main parties: the guarantor, the MSME as the guaranteed party, and the financial institution as the recipient of the guarantee.
With this guarantee, credit risk can be reduced, thus encouraging more financial institutions to channel financing to the MSME sector. The Financial Services Authority (OJK) hopes this collaborative approach will accelerate MSME growth and increase financial inclusion in Indonesia.
The House of Representatives Urges Immediate Policy Guarantees! Is the Fate of Insurance Customers at Stake?
The House of Representatives (DPR RI) is urging the Deposit Insurance Corporation (LPS) to immediately finalize the roadmap for the Policy Guarantee Program (PPP) so that it can be optimally implemented. This push comes amid concerns about the condition of the insurance industry, which has been under pressure in recent years.
Didik Haryadi, a member of Commission XI of the Indonesian House of Representatives (DPR RI), emphasized the importance of a prepared policy guarantee scheme to protect customers and maintain industry stability. He believes that without concrete steps, public trust in insurance could continue to decline.
The House of Representatives also highlighted several crucial aspects that require careful formulation, such as the contribution mechanism for insurance companies, whether it will be comprehensive or based on specific criteria. Furthermore, questions were raised regarding alternative funding options if the guarantee scheme is deemed inadequate, including the possible involvement of the banking sector.
Nevertheless, the House of Representatives (DPR) expressed its full support for the implementation of PPP and hoped the program could be implemented soon. The introduction of policy guarantees is believed to be a crucial step in strengthening customer protection and increasing public trust in the national insurance industry, which is currently facing various challenges.
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If we draw a common thread, all these dynamics lead to one goal, namely rebuilding trust.
However, stricter regulations alone are not enough. The insurance industry is required to be more adaptive, transparent, and truly focused on customer needs, rather than simply pursuing premium growth.
The question now is no longer “will insurance grow?” but who will survive and be trusted amidst these major changes?
Because in today’s era, the winner is not the biggest but the most trusted.
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