Recent developments in the Indonesian insurance industry have once again highlighted a key issue: how risk protection is implemented amidst the increasing complexity of business, regulations, and consumer behavior. From vehicle claim rejections due to driver negligence during floods, to a major overhaul of insurance regulations by the Financial Services Authority (OJK), to the entry of credit insurance into the online lending ecosystem—all these issues demonstrate that insurance is not simply a protective product, but an instrument that relies heavily on governance, risk discipline, and compliance. This edition summarizes seven recent insurance news stories that reflect significant shifts in the national risk protection landscape, for consumers, businesses, and regulators alike.
Bravely Wading Through Floodwaters? Be Prepared for Your Car Insurance Claim to Be Rejected!
Many car owners mistakenly assume that insurance will automatically cover flood damage, even if the vehicle recklessly drives through floodwaters. Automotive practitioner Anjar Leksana emphasizes that driving through floodwaters is a serious violation of policy terms and will almost certainly result in a claim being denied. Insurance companies have strict inspection procedures and detection tools capable of identifying whether damage is due to driver negligence.
Furthermore, a common mistake is neglecting to renew a policy. Many owners believe they are still covered, even though the policy has already expired when disaster strikes. In such circumstances, claims cannot be processed, even if the damage is severe. However, there are limited exceptions, such as if vehicle documents are lost due to flooding and the insurance company still has digital data that can be verified.
Another fatal mistake is starting the engine after the car has been submerged. This action is considered human error and is a strong reason for claim denial. Anjar advises owners to immediately contact their insurance call center for towing without attempting to start the engine or electrical system.
He also emphasized the importance of understanding insurance types. TLO only covers loss or damage above 75 percent, while comprehensive insurance with extended flood coverage is recommended for vehicle owners in vulnerable areas like Greater Jakarta (Jabodetabek) to ensure optimal protection.
OJK Completely Overhauls Insurance Regulations! Health Claims Strictly Monitored, Co-Payments Officially Introduced
The Financial Services Authority (OJK) has officially strengthened the foundations of the insurance, guarantee, and pension fund industries through the issuance of POJK Number 33 of 2025 and POJK Number 36 of 2025. These two regulations are strategic steps to increase industry competitiveness while tightening risk-based supervision. POJK 33/2025 regulates the methodology for assessing company health levels using a risk-based supervision approach that covers financial performance, risk profiles, governance, and capital adequacy. This regulation applies to conventional and sharia-compliant companies, effective January 1, 2026, with the obligation to report self-assessment results through the official OJK system.
Meanwhile, POJK 36/2025 focuses on structuring the national health insurance ecosystem to curb the practice of overutilization of medical services. Insurance companies are required to have adequate medical capabilities, an integrated information system, and a Medical Advisory Board to ensure more controlled claims management. The regulation also stipulates a 5 percent risk-sharing (co-payment) scheme with a maximum limit of IDR 300,000 for outpatient care and IDR 3 million for inpatient care. This policy aims to encourage more rational use of healthcare services, reduce moral hazard, and maintain affordable premiums. The OJK also requires utilization reviews and coordination with BPJS Kesehatan (Social Security Agency for Health) to maintain the efficiency and sustainability of the health insurance industry.
Source: https://rri.co.id/lain-lain/2116332/ojk-terbitkan-aturan-baru-perkuat-industri-asuransi-nasional
Pinjol Now Offers Credit Insurance! Could Debt Be Safer or Is It Making Lenders Bolder?
The Indonesian Fintech Lending Association (AFPI) has welcomed the introduction of a credit insurance product aimed at the online lending industry (pindar/pinjol). AFPI Chairman Entjik S. Djafar believes this policy aligns with the fintech lending business model and can provide additional options for lenders to mitigate the risk of default. While potentially disruptive to the ecosystem, AFPI views the impact as insignificantly negative and likely beneficial to the industry’s sustainability.
However, the Financial Services Authority (OJK) emphasized that credit insurance should not be interpreted as a substitute for risk management by online lenders. Ogi Prastomiyono, Chief Executive of the OJK Insurance Supervisory Agency, emphasized that responsibility for creditworthiness assessment, collection, and governance remains with online lenders, as per POJK 40/2024. Credit insurance serves only as a layer of protection, not as a justification for easing prudential principles.
From the insurance industry perspective, the Indonesian General Insurance Association (AAUI) stated that this product will be marketed through a consortium scheme. To date, five insurance companies have joined. This scheme is considered crucial for proportional risk sharing, maintaining industry capacity, and ensuring sustainable protection amidst high claims ratios in credit insurance.
Hajj Insurance Premiums Increase Fivefold, But Pilgrims Don’t Pay a Dime—Who’s Covering?
The government has officially increased the 2026 Hajj insurance premium to 100 riyals per pilgrim, a fivefold increase from the previous season’s 20 riyals. This increase is intended to strengthen pilgrims’ protection from departure, during their stay in the Holy Land, and upon their return to Indonesia. Despite the significant increase, the Ministry of Hajj and Umrah has assured that the additional costs will not be borne by the pilgrims, as they are covered by the state and are included in the Hajj financing component.
Ministry of Hajj Expert Staff Ramadhan Harisman explained that there are two main types of coverage. First, life insurance, which is provided to heirs if a pilgrim dies during the Hajj, covers the amount of compensation paid in the amount of the Hajj Pilgrimage Benefit (BPIH). Second, health insurance covers medical care during the pilgrim’s stay in Saudi Arabia through local healthcare facilities. All of these plans are integrated into the Hajj Pilgrimage Management Fee (BPIH).
For 2026, the total BPIH is set at IDR 87.4 million, with pilgrims only paying around IDR 54.1 million in Bipih, with the remainder subsidized from the benefit value. However, health insurance coverage is only valid while in Saudi Arabia. If pilgrims require further treatment in Indonesia, the costs are not covered, so the government requires all pilgrims to have BPJS Kesehatan membership as an additional layer of protection.
Source: https://amnesia.id/premi-asuransi-haji-2026-naik-lima-kali-lipat/
Crop Failure Insurance Claims to Be Disbursed Soon! Thousands of Central Java Farmers Will Receive Compensation, These Are the Priority Areas
The Central Java Provincial Government has confirmed that the Rice Farming Insurance (AUTP) claims process for land damaged by flooding in Kudus, Pati, and Grobogan has entered the final verification stage. This step is a breath of fresh air for farmers affected by extreme weather and threatened with crop loss. Claims data is currently being validated by PT Asuransi Jasa Indonesia (Jasindo) through the Agricultural Insurance Information System (SIAP) to ensure targeted assistance.
The Head of the Central Java Agriculture and Breeding Agency, Defransisco Dasilva Tavares, stated that field verification was conducted with pest and disease control officers to compare actual conditions with incoming reports. This process is expected to be completed within 15 days, with priority given to compensation for crops that were nearing harvest but could not be saved. The worst damage was recorded in Pati, covering 672.12 hectares, followed by Kudus (315.49 hectares), and Grobogan (83.3 hectares)—areas included in the AUTP risk map.
For farmers in areas not yet registered with the AUTP, such as Jepara, the provincial government is providing free seeds and fertilizer to enable them to resume planting quickly. In 2026, Central Java allocated IDR 1.8 billion to protect 10,449 hectares of land. This policy is a crucial strategy for maintaining food security while protecting farmers’ economies from the threat of hydrometeorological disasters.
The Automotive Industry Is Sluggish, But Vehicle Insurance Premiums Remain Huge! Here’s the Secret Behind It
The Indonesian General Insurance Association (AAUI) emphasized that motor vehicle insurance remains the backbone of general insurance premiums, despite slowing automotive sales. AAUI Chairman Budi Herawan explained that this line’s strength lies in its broad and sustainable exposure base. Premiums are not only driven by new car sales, but also by the millions of existing vehicles that continue to require protection through annual policy renewals, financing schemes, and daily risk protection needs.
However, the industry is not without challenges. Competition for rates and benefits is intensifying, while claims costs are trending upward amidst fluctuations in the automotive market. Changing consumer behavior, leading to increased price sensitivity, also forces companies to be more selective in risk acquisition and premium setting. AAUI emphasizes the importance of strengthening underwriting, optimizing digital distribution, and innovating relevant products to maintain customer retention.
Data from the third quarter of 2025 shows that vehicle insurance premiums fell 4% year-on-year to Rp 14.11 trillion, while claims rose 0.7% to Rp 5.63 trillion. The Financial Services Authority (OJK) noted that this line remains the third-largest premium contributor, after property and credit insurance. Looking ahead, the outlook for 2026 is predicted to be stable, with key factors being a balance between premium growth, claims management, and prudent portfolio sustainability.
The 2026 Deadline Is Getting Closer! Six Sharia Insurance Units Are Set to Separation, Will the Industry Completely Change?
The Financial Services Authority (OJK) has announced the acceleration of the spin-off process for Sharia Business Units (UUS) in the insurance and reinsurance industry ahead of the 2026 deadline. By the end of 2025, six UUS were in the process of spinning off. Two of these have chosen to establish new full-fledged Sharia insurance companies, while the other four are pursuing portfolio transfers to licensed Sharia insurance companies.
OJK’s Chief Executive for PPDP Supervision, Ogi Prastomiyono, explained that several Sharia Business Units (UUS) are still in the preparation stage for licensing and operational readiness. According to the Sharia Business Unit Separation Work Plan (RKPUS) report, a total of 41 UUS have submitted plans since 2023. Of these, 28 plan to establish new Sharia insurance companies, while 13 have opted for portfolio transfer.
The spin-off policy is mandated by Law No. 40 of 2014 concerning Insurance, which is reinforced through POJK 11/2023. The goal is to strengthen governance, capitalization, and the focus of the Sharia insurance business to make it more independent and competitive. The OJK emphasized that every corporate decision will be evaluated based on economic conditions, shareholder risk appetite, and business sustainability. For Sharia-compliant …
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This series of news stories emphasizes that insurance cannot stand alone without strong risk management, adequate policy understanding, and adaptive regulatory oversight. The presence of credit insurance in the lending industry, the implementation of health insurance co-payments, the increase in Hajj insurance premiums, crop failure claims, and the dynamics of vehicle premiums demonstrate that risk protection always carries consequences—whether financial, operational, or behavioral. Without a prudent principle, insurance has the potential to create new moral hazards. Therefore, going forward, a balance between protection, responsibility, and governance will be key to ensuring insurance truly functions as a buffer of stability, rather than merely a pseudo-risk transfer.
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