The development of the national insurance industry from late October to early November 2025 demonstrated interesting and challenging dynamics. Amid the increasing intensity of natural disasters such as earthquakes and floods in various regions of Indonesia, the Financial Services Authority (OJK) is increasingly promoting the importance of disaster insurance for the public. In line with this, a number of strategic issues have influenced the industry, ranging from the oversight of six troubled insurance companies, a surge in claims due to riots, to new opportunities in the travel insurance sector and digital transformation driven by the younger generation. All of these developments reflect how the Indonesian insurance industry continues to adapt to risks and opportunities in a dynamic economic landscape.
OJK Reveals 6 Problematic Insurance Companies, Customers Must Be Alert!
The Financial Services Authority (OJK) revealed that six insurance and reinsurance companies are currently under special supervision. This measure was taken because these companies have not met the minimum financial health ratios set by the regulator.
The Chief Executive of the Insurance, Guarantee, and Pension Fund Supervisory Agency (OJK), Ogi Prastomiyono, stated that the identities of the six companies could not be made public to maintain industry stability.
“Currently, six insurance and reinsurance companies remain under special supervision by the OJK. The primary reason is that they have not met the minimum financial health ratios stipulated in OJK regulations,” Ogi said in a statement on Thursday (October 30, 2025).
He added that the OJK conducts strict and measured oversight, including ensuring that companies have capital improvement plans approved at the General Meeting of Shareholders (GMS). These plans must be implemented according to the established schedule.
“The OJK ensures that every company implements its capitalization plan in a disciplined manner and requires shareholder commitment to increase capital. Our primary focus is protecting policyholder interests,” he stressed.
The Impact of the August 2025 Protest Riots! The Financial Services Authority (OJK) Reveals a Fantastic Insurance Claim of Rp150 Billion
The Financial Services Authority (OJK) revealed that total insurance claims resulting from the riots and demonstrations that occurred at the end of August 2025 reached approximately IDR 150 billion. This figure is based on data from the Indonesian General Insurance Association (AAUI).
Ogi Prastomiyono, Chief Executive of the OJK’s Insurance, Guarantee, and Pension Fund Supervisory Agency, explained that the claims came from four main business lines: property, motor vehicles, engineering, and various insurance.
“The OJK emphasizes the importance of settling claims in accordance with policy provisions and prudent principles to ensure policyholder rights are protected and public trust in the insurance industry is maintained,” Ogi said in a statement on Friday (10/31/2025).
He added that insurance claims are divided into two types, namely those guaranteed by the State Property Insurance Consortium (KABMN) and by private insurance.
The buildings included in the scope of KABMN include the Ciracas Police, the Jambi High Prosecutor’s Office, the Mamuju High Prosecutor’s Office, the front fence of the MPR/DPR Building, and the DJKN Building, Jakarta Regional Office.
Meanwhile, assets guaranteed by private insurance include the South Sulawesi Regional People’s Representative Council Building, the Grahadi State Building in Surabaya, three police posts in Slipi, Salemba, and Gunung Sari, and a hotel in Bandung.
Ogi also emphasized that insurance companies should expedite the verification and payment process for claims that have been declared eligible and report their progress regularly to the OJK.
In addition, he emphasized the importance of expanding Riot, Strike, Malicious Damage, and Civil Commotion (RSMDCC) coverage in insurance policies, as its benefits are significant in providing certainty of protection for both public and private asset owners.
Earthquakes and Floods on the Rise! OJK Encourages the Public to Have Natural Disaster Insurance
The Financial Services Authority (OJK) emphasized the importance of strengthening natural disaster insurance amid the increasing frequency of disasters in Indonesia.
The Chief Executive of the Insurance, Guarantee, and Pension Fund Supervision Office of the Financial Services Authority (OJK), Ogi Prastomiyono, stated that Indonesia’s geographical position on the Pacific Ring of Fire places the country at high risk of various natural disasters such as earthquakes, volcanic eruptions, and major floods.
“Indonesia faces a very high risk of natural disasters. Therefore, disaster insurance is a vital instrument for protecting people and assets from economic losses caused by disasters,” Ogi said in a statement on Thursday (October 30, 2025).
Despite the significant risks, Indonesia has not yet mandated disaster insurance. Currently, disaster risk protection is usually an add-on to property or property insurance policies.
The Financial Services Authority (OJK) assesses that the potential for developing disaster insurance in Indonesia remains enormous. Therefore, increased literacy, public awareness, and active collaboration between the government, the insurance industry, and global reinsurance institutions are needed to build a stronger and more sustainable protection system.
As of August 2025, the Financial Services Authority (OJK) recorded premium income from the property insurance business line reaching Rp23 trillion, a 7.2% year-on-year (YoY) increase. Meanwhile, the value of claims paid was recorded at Rp4.8 trillion, a 6.2% decrease compared to the same period last year, indicating improvements in risk management and the stability of the property insurance portfolio.
Independent Umrah Officially Launched! The Travel Insurance Industry is Poised to Reap New Opportunities
Travel insurance is predicted to surge following the government’s approval of the Independent Umrah policy. This move opens up significant opportunities for insurance companies to expand their market share in both international and domestic travel.
Abitani Taim, Head of the College of Risk Management and Insurance (STIMRA), explained that the legalization of independent Umrah pilgrimages allows people the freedom to choose their own travel insurance. “This policy opens up equal opportunities for external insurance companies that have partnered with Hajj and Umrah travel associations,” he said on Wednesday (October 29, 2025).
Insurance observer Irvan Rahardjo echoed this sentiment, believing the policy would positively impact the travel insurance industry. With the independent Umrah scheme, travel costs would be more flexible and affordable, potentially increasing the number of pilgrims. “The more pilgrims who travel, the broader the potential travel insurance market. Collaboration with airlines, hotels, and transportation operators will be key,” Irvan explained.
However, Irvan also highlighted challenges on the demand side, such as low purchasing power, minimal awareness of the importance of insurance, and the availability of Jasa Raharja coverage, which already covers ordinary passengers. Therefore, he emphasized the importance of product and distribution digitalization to ensure easy access to travel insurance through online platforms and travel partners.
Meanwhile, Wahju Rohmanti, a member of the Indonesian Insurance Writers Community (Kupasi), believes this business opportunity could be a significant boost, especially if travel insurance is eventually made mandatory for independent Umrah pilgrims or ticket purchases. “As long as it remains optional, the impact may not be felt too much,” he said.
Wahju added that to remain relevant, travel insurance products need to be packaged with a lifestyle approach that aligns with the trends of the modern generation. “Insurance should be seen not as an obligation, but as part of a smart and safe travel lifestyle,” he concluded.
The Ministry of Hajj and Umrah previously legalized independent Umrah through Law No. 14 of 2025 concerning the third amendment to Law No. 8/2019. This policy provides a legal framework for security, pilgrim protection, and administrative order amid regulatory changes from the Saudi Arabian government.
Gen Z Could Be a Game Changer for the Digital Insurance Industry, But Why Is There Still So Little Interest?
Generation Z is considered to hold significant potential to drive the growth of the digital insurance industry in Indonesia. However, the adoption of insurance technology, or insurtech, among young people remains relatively low.
The President Director of PT Asuransi Kredit Indonesia (Askrindo), M. Fankar Umran, revealed that his research aimed to understand Gen Z’s perspectives and behavior towards technology-based insurance services, a crucial element in the future financial ecosystem.
“As part of Askrindo, we are committed to continuing to innovate in the insurtech sector, expanding financial inclusion, and providing more comprehensive protection to the public,” said Fankar.
He emphasized that Gen Z comprises approximately 27.5% of Indonesia’s population, with an increasingly digitally savvy population accustomed to cashless transactions. However, insurtech’s contribution to total insurance premiums in Indonesia remains small, at only around 1%.
“The insurance industry must capitalize on this enormous opportunity. We need to create products that are relevant to Gen Z’s needs, improve the overall digital experience, and expand online distribution channels to truly tap into this potential,” he added.
Fankar also believes that digital transformation in the insurance sector is a crucial step in opening access to protection for the younger generation. “This demonstrates Askrindo’s concrete commitment to supporting the digitalization of the insurance industry and expanding the reach of protection,” he explained.
This statement was made while defending his dissertation, titled “Factors Influencing the Intention to Use Insurance Technology (Insurtech) Among Generation Z in Indonesia Using the Extended DM Model,” at Tarumanagara University. In the open defense, Fankar earned a Doctorate in Management Science with cum laude honors and a perfect GPA of 4.00.
The trial promoter, Prof. Dr. Agustinus Purna Irawan, expressed his high appreciation for Fankar’s research findings. “This research is highly relevant to current digital developments. The findings provide a tangible contribution to the insurance industry in understanding the younger generation’s attitudes toward technology-based financial services and strengthening digital financial inclusion,” he said.
Vacations Can Leave You Broke Without Travel Insurance! Here’s Why You Should Get One Now
For many people, especially younger generations, traveling out of town or even abroad has become a way of life. However, despite the excitement of exploring new places, there are always unforeseen risks that can arise at any time, from lost luggage and delayed flights to falling ill in a foreign country.
This is where travel insurance plays a crucial role. It’s not just a formality, but a form of financial and mental protection that makes traveling safer and more comfortable. With this protection, travelers can enjoy every moment without worrying about the worst happening.
Many real-life examples demonstrate the importance of travel insurance. For example, travelers who require emergency medical treatment abroad face bills reaching hundreds of millions of rupiah. However, thanks to an active travel insurance policy, all costs are covered. Similar cases have occurred domestically, when luggage containing valuables is lost at the airport—an insurance claim is a lifeline.
Public awareness of the importance of this protection continues to grow, especially among younger travelers who are accustomed to digital services. Now, they can purchase policies, customize coverage to their needs, and even file claims easily online.
Unfortunately, many still consider travel insurance an unnecessary expense. However, relatively low premiums can protect against significant losses when disaster strikes. Data shows that travel insurance sales in Indonesia continue to increase, reaching 5,000 to 6,000 policies per month, and are expected to reach 10,000 policies by the end of the year. These products are sold both through travel agents and digital channels such as company websites and visa provider partners.
Abhishek Bhatia, Founder and Group CEO of Oona Insurance Group, emphasized that travel insurance is now a crucial need for many people. Similarly, President Director Vincent C. Soegianto highlighted the low public awareness of the importance of protection while traveling. “The cost of medical treatment abroad can be equivalent to the total cost of a vacation, even though insurance is very affordable,” he explained.
According to him, public education about the benefits of travel insurance must continue to be promoted so that people do not regret facing an emergency situation without protection.
This market growth is also reflected in the industry’s solid performance, despite a 12% year-on-year increase in operating expenses to Rp705.94 billion. Thanks to an effective distribution strategy and growing digital penetration, profitability has remained strong.
In conclusion, travel insurance is no longer just a holiday accessory, but a primary necessity in this era of high mobility. Younger travelers need to understand that financial protection is a crucial part of smart vacation planning.
Jasindo Achieves 288% Profit Gain! Insurance Proves It Can Be a Driver of National Economic Growth
The government continues to promote strengthening national financial literacy and inclusion as an effort to build a financially literate society. Supporting this commitment, PT Asuransi Jasa Indonesia (Asuransi Jasindo) actively participated in a series of activities commemorating National Financial Day 2025 and Financial Inclusion Month (BIK), presenting various educational programs on the importance of insurance in various regions of Indonesia.
“As part of the national financial ecosystem, Jasindo is committed to broadening public understanding of the vital role of insurance. Through literacy activities that reach various levels, we want the public to understand that insurance is part of a healthy and sustainable financial lifestyle,” said Jasindo Corporate Secretary, Brellian Gema, on Thursday (October 30, 2025).
Throughout October, Jasindo held various financial literacy and education activities. Among them, the Indonesia Career Expo & Campus Job Fair opened career opportunities for young people while also highlighting the insurance industry’s role in maintaining economic stability.
Jasindo also launched an Insurance Literacy Program for Farmers in West and Central Java, providing education on the importance of protecting agricultural businesses to support national food security. This program was implemented in several regions, including Garut, Purwakarta, Bandung, Indramayu, and Kendal.
In addition, Jasindo Goes to School and Jasindo Goes to Campus activities were also held to improve financial literacy among school and college students, while also raising awareness that insurance plays an important role in long-term financial planning.
“We want to make financial literacy a part of everyday life. From farmers to students, everyone needs to understand how insurance can maintain the financial stability of families and businesses,” Brellian continued.
In terms of financial performance, Jasindo recorded a 288.9% surge in net profit in the third quarter of 2025, reaching Rp127.30 billion, a significant increase from Rp32.73 billion in the same period the previous year.
This positive growth was supported by increases across nearly all business lines. Premium income reached Rp3 trillion, up 11.36% year-on-year (YoY), while underwriting results rose 21.88% to Rp299.42 billion. Investment returns also increased 6.20% to Rp210.8 billion.
In terms of capital, Jasindo’s RBC ratio was recorded at 173.49%, well above the OJK minimum requirement of 120%. According to Jasindo’s Operational Director, Ocke Kurniandi, this achievement reflects financial health and strong risk management implementation.
“This growth is inseparable from our strategy of focusing on a quality business portfolio and implementing a Risk Management Partnership with our corporate insureds. We don’t just sell policies, but act as a strategic partner in helping clients manage risk comprehensively,” explained Ocke.
In terms of business, the highest growth was recorded by the engineering line, which jumped 263.59% (YoY) to Rp241.35 billion, followed by the liability line which rose 124.40%, cargo by 40.22%, and onshore energy by 39.34%.
The offshore energy segment also recorded steady growth of 6.78%, with total premiums from both onshore and offshore energy sectors reaching over Rp558.17 billion. This figure makes the energy sector a primary driver of Jasindo’s revenue through September 2025.
“The energy sector is our core expertise. Through the Prime app, we can conduct risk assessments and analyses from the outset, ensuring our customers receive comprehensive protection,” Ocke concluded.
This series of recent news stories emphasizes the strategic role of the insurance industry in maintaining national economic resilience while protecting the public from various risks, including natural, social, and financial ones. Challenges such as low literacy, changing consumer behavior, and the need for digitalized services create significant opportunities for innovation and cross-sector collaboration. With strong regulatory oversight, increased public awareness, and strengthened risk management by industry players, insurance can become a crucial foundation for creating a more resilient and empowered society that can withstand future uncertainties.
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