Recent developments in the insurance industry point to an increasingly clear direction: risk protection is now moving in line with changes in lifestyle, technology, and demographic structure. From massive financial literacy campaigns in the regions, fiscal policy initiatives that stimulate property insurance, to the growing recognition of insurance’s role in retirement planning—all these dynamics signal the industry’s efforts to expand its relevance amidst low national insurance penetration. At the same time, product innovation is beginning to penetrate previously marginalized segments, including classic vehicles, electric cars, digital travel, and the strengthening of risk-based regulations by the Financial Services Authority (OJK). This weekly edition summarizes seven key insurance news stories that reflect the transformation in the structure and strategy of the Indonesian insurance industry.
Financial Literacy Goes to the Regions! This National Campaign Targets Indonesian Families to Be More Prepared to Face Risks
Sun Life Indonesia is reaffirming its commitment to improving national financial literacy and inclusion by expanding its “The One You Can Rely On” campaign to several major cities across Indonesia. Starting in Bandung, the campaign will continue to Surabaya, Makassar, Tanjung Pinang, and Palembang. This move is considered strategic amidst Indonesia’s low insurance penetration rate, which remains at around 2–3 percent, reflecting the lack of financial protection for most families.
Sun Life views rising healthcare costs and increasing life expectancy as real risks that need to be addressed early. Therefore, insurance is being pushed to no longer be viewed as a secondary need, but rather as a vital part of long-term financial planning. Sun Life Indonesia’s Chief Marketing Officer, Maika Randini, emphasized that for 30 years, Sun Life has been a “traveling companion” for Indonesian families, assisting them from basic protection to cross-generational legacy planning.
Public trust is reflected in Sun Life’s business growth, which will reach approximately 50 percent through 2025. To expand access, Sun Life relies on multi-channel distribution through banking partnerships and an agency network, including conventional and sharia-compliant products. Entering 2026, the company is affirming three main focuses: financial education, access to protection at every stage of life, and continuous innovation with simpler, more affordable, and more efficient digital services.
The DTP VAT Incentive is a Booster! Property Insurance Premiums Predicted to Increase Again in 2026
The Indonesian General Insurance Association (AAUI) has assessed that the extension of the Government-Borne Value Added Tax (PPN DTP) incentive for home purchases until the end of 2026 has the potential to catalyze property insurance premium growth. AAUI Chairman Budi Herawan stated that this policy will boost landed house and apartment transactions, particularly in the middle segment, which will directly increase the need for insurance protection.
Until the third quarter of 2025, property insurance will remain the largest contributor to general insurance premiums, accounting for approximately 29%. Property insurance coverage extends beyond residential properties to commercial and industrial sectors such as factories, offices, shopping centers, and warehouses. Therefore, any policy that stimulates the property sector is believed to have a direct impact on increasing insurance demand.
However, AAUI assesses that the impact of this incentive will be gradual, as it depends on the realization of transactions and property handover. To maximize opportunities, insurance companies are encouraged to strengthen collaboration with banks through mortgage schemes, partner with developers, and utilize digital channels.
On the other hand, AAUI emphasized the importance of disciplined risk management. Natural disaster risks such as floods, earthquakes, and fires remain a major challenge. By strengthening underwriting, reinsurance, and geographic risk mapping, AAUI is optimistic that the property insurance outlook for 2026 will remain positive, albeit with more selective and sustainable growth.
Diligent Investment Isn’t Enough! Here’s Why Insurance Is the Key to a Secure Retirement
Retirement planning is often understood as simply saving and investing. However, Djoko Sulistyo, Head of Investment & Insurance Products at the Consumer Banking Group at PT Bank DBS Indonesia, emphasized the crucial role insurance plays in ensuring the sustainability of long-term financial plans. He made this statement at the launch of the “Retirement Isn’t Hard” campaign.
Djoko explained that many people are already disciplined in allocating around 10 percent of their income to investments. Unfortunately, this calculation can be instantly shattered if an unexpected risk occurs, such as a serious illness, accident, or death, which disrupts their income stream. In such circumstances, carefully planned retirement plans can be disrupted due to the interruption of cash flow. This is where insurance comes in, providing a safeguard to ensure financial goals remain on track.
He also encouraged people to purchase insurance from a young age. In addition to more affordable premiums, insurance coverage should be tailored to each individual’s financial capabilities and life stage.
Regarding insurance penetration, Djoko acknowledged that the figure is still low, at around 2–3 percent. However, he sees a growing trend in public interest, fueled by the widespread education and information available on social media. The biggest challenge now is discipline: from transforming awareness into action to keeping policies relevant as life’s needs change.
Vintage Cars Are No Longer Stepchildren! Insurance Companies Are Starting to Target Classic Vehicles
The Indonesian motor vehicle insurance industry is beginning to exhibit a shift in strategy. While insurance coverage was previously synonymous with new or young cars, insurance companies are now turning to the hobby and classic car segments as a potential, previously underserved market. This trend addresses the needs of collectors and automotive enthusiasts who own historically valuable vehicles but often struggle to obtain appropriate coverage.
This change is evident in PT BRI Asuransi Indonesia (BRI Insurance)’s official launch of its newest product, Otomaxy. This product allows older vehicles maintained in their original condition to receive both comprehensive and Total Loss Only (TLO) coverage. One of its key innovations is the introduction of the Otomaxy Classic variant, specifically for cars manufactured in 1995 and earlier with significant historical value.
BRI Insurance President Director Budi Legowo emphasized that today’s vehicles are increasingly diverse, making it impossible to standardize insurance. Each vehicle has different technology, value, and risks, requiring more flexible and specific protection solutions.
Otomaxy isn’t just looking back at the past; it’s also anticipating the future with its Otomaxy Electric Vehicle (EV) product. This product is designed to protect against risks typical of electric vehicles, such as battery damage and high-voltage systems. This move demonstrates that vehicle insurance is transforming to keep pace with the evolution of lifestyles and automotive technology.
Source: https://www.inilah.com/tren-baru-asuransi-otomotif-mobil-tua-dan-koleksi-kini-bisa-diasuransikan
Travelers Must Know! Travel Insurance is Now All Digital, Faster Claims, and Cashless
The increasing mobility of people for both business and leisure has driven significant changes in travel protection needs. Risks such as flight delays, health problems while traveling, and trip cancellations are now major concerns for travelers. Travel insurance is no longer seen as merely an add-on, but rather as a crucial part of thorough travel planning.
In line with these changes, consumers are demanding fast, convenient, and digitally integrated insurance services. The process from policy purchase to claims is expected to be simple and straightforward, without complicated procedures. To address this need, Amanyaman has formed a strategic partnership with PT Asuransi MSIG Indonesia to offer digital-based travel insurance products specifically designed for today’s travelers.
MSIG Indonesia’s Deputy President Director, Bernard P. Wanandi, emphasized that this collaboration aims to provide comprehensive protection with easily accessible services. This product offers a variety of superior features, including cashless medical coverage, flight delay compensation after a four-hour delay regardless of the cause, visa rejection protection, and reimbursement for ticket rebooking costs.
Going forward, the digitalization of travel insurance is projected to be a driving force for industry growth, as consumer expectations for fast, transparent services and a sense of security during travel increase.
Starting in 2026, Mandatory Insurance Will Be Healthier & More Transparent! Here’s the Impact of the OJK’s New Regulation on the Insurance Industry
The Financial Services Authority (OJK) has officially strengthened the foundations of the insurance, guarantee, and pension fund industries by issuing two strategic regulations, POJK Number 33 of 2025 and POJK Number 36 of 2025. These two regulations are major steps by the OJK to ensure the non-bank financial industry grows more healthily, competitively, and sustainably amidst increasing risk complexity.
OJK Regulation 33/2025 regulates the assessment of the health level of insurance companies, guarantee institutions, and pension funds using a risk-based approach. The assessment looks not only at financial performance but also at governance, risk profiles, profitability, capitalization, and business prospects. Assessments are conducted individually and consolidated for business groups, and self-assessment results must be reported to the OJK. This regulation came into effect on January 1, 2026.
Meanwhile, POJK 36/2025 focuses on strengthening the health insurance ecosystem by emphasizing policyholder protection. This regulation governs product design, risk management, healthcare service utilization, and requires companies to have medical and digital capabilities. The OJK also limits risk-sharing features to prevent overutilization, with a maximum co-payment scheme of 5 percent or an annual deductible.
Despite these regulatory tightenings, the insurance industry’s performance remains stable. By November 2025, total industry assets reached Rp1.19 quadrillion, with a maintained solvency level, indicating the industry is ready to face an era of stricter and more structured oversight.
Insurance and Banking in APAC Accelerate Digital Transformation! IT Spending Skyrockets, Cloud and AI Become Key Weapons
Spending on information technology (IT) services in the Asia-Pacific (APAC) region is projected to continue growing rapidly, driven by the insurance, banking, and public sector institutions accelerating their technological modernization. Increasing regulatory pressures and aging legacy systems are forcing these organizations to invest significantly in more secure, efficient, and compliant digital solutions.
Forrester’s Global IT Services Market Forecast, 2025–2029 report predicts global IT services spending will grow at a CAGR of 4.8 percent through 2029, despite continued productivity challenges in the global economy. In APAC, cloud is a key growth driver, with Infrastructure as a Service (IaaS) expected to surge at a CAGR of 21.9 percent through 2030.
Financial institutions are increasing investments in cloud computing, automation, and cybersecurity to meet compliance needs and mitigate the risk of technology obsolescence. In Australia and Singapore, the public and defense sectors are even beginning to explore generative AI to support decision-making. Meanwhile, Goldman Sachs estimates that 10–20 percent of companies in China will adopt genAI by 2030.
This strong demand is also driving industry consolidation. Global companies like Accenture, Capgemini, and NTT DATA are aggressively pursuing acquisitions and regional expansion. This trend underscores that digital transformation, cloud, and AI are no longer options but strategic imperatives for the financial and public sectors in APAC.
These issues emphasize that the future of insurance no longer relies on a uniform approach, but rather on a more precise understanding of risk, adaptive technology, and increasingly stringent governance. The entry of classic cars into the insurance market, the accelerated digitalization of travel services, the strengthening of healthcare and solvency regulations, and the surge in IT spending in the financial sector all point to a common thread: insurance must evolve with changing risks, not simply expand premium volumes. Without continuous education, disciplined underwriting, and measured digital transformation, innovation risks creating new exposures. Therefore, the balance between inclusion, innovation, and risk management will determine whether the insurance industry can grow sustainably or face structural challenges in the future.
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