As we enter 2026, the Indonesian insurance industry is at a crucial crossroads between strengthening governance, risk pressures, and new growth opportunities. The relatively smooth implementation of PSAK 117, tightened fiscal transparency through oversight of large-value policies, and claims and investment dynamics demonstrate that the sector is increasingly moving toward healthier and more sustainable discipline. Meanwhile, challenges such as the high credit insurance claims ratio, the potential for a slowdown in marine cargo due to weakening exports, and the discourse on mandatory insurance policies demand a strategic response from regulators.and industry players. Here is a summary latest insurance news in Indonesia which reflects the future direction, challenges and opportunities of the insurance industry.
Rp4 Billion Insurance Policies Now Under Tax Oversight! New Government Regulations Change the Landscape of Financial Transparency
The government has officially expanded the scope of fiscal transparency by establishing a threshold for insurance policy values subject to tax reporting requirements. Through Minister of Finance Regulation (PMK) No. 108 of 2025, high-value insurance products, particularly cash-value insurance and annuity contracts, are now categorized as financial accounts that must be reported to the tax authorities. This regulation marks a significant milestone in strengthening oversight of high-value financial assets.
The Minister of Finance Regulation (PMK) explains that insurance policies with an aggregate value above US$250,000, or approximately Rp4 billion, are no longer exempt from reporting requirements. This means that policies with values below this threshold remain exempt, while high-value policies are included in the national fiscal transparency scheme. This provision provides clarity for the insurance industry regarding the official limits of reporting requirements.
Furthermore, PMK 108/2025 explicitly positions cash value insurance and annuity contracts as financial accounts, not merely protection instruments. This reflects the government’s recognition that certain insurance products also serve as instruments for wealth storage and accumulation.
This regulation also emphasizes the role of insurance companies as reporting entities in the tax system. As such, insurance companies have a new responsibility to ensure compliance with high-value policy data reporting. This policy is expected to increase transparency, expand the tax database, and strengthen the integrity of the national financial system amid the increasing complexity of financial products.
Entering 2026, General Insurance Companies Will Still Hold SBN: Safe, Stable, and a Shield Against Claim Pressure
Government Securities (SBN) are expected to remain the backbone of general insurance companies’ investment portfolios in 2026. Budi Herawan, Chairman of the General Insurance Association (AAUI), emphasized that the dominance of SBN aligns with the characteristics of the general insurance business, which demands high liquidity, stable cash flow, and prudent risk management. These needs make low-risk instruments like SBN the preferred choice over high-yielding but volatile instruments.
According to data from the Financial Services Authority (OJK), general insurance investments are still dominated by government securities (SBN) because they offer a combination of security, relatively stable returns, and support for Asset Liability Management (ALM). With a short- to medium-term liability structure, general insurance requires instruments that can guarantee cash availability when claims increase.
Nevertheless, Budi stated that opportunities for selective diversification remain open. In 2026, general insurance companies have the potential to increase their investment portfolio in high-quality corporate bonds or mutual funds, provided they comply with their risk profiles and regulatory requirements. This diversification aims to increase portfolio efficiency without sacrificing stability.
However, Budi emphasized that investment returns are not the primary driver of growth in the general insurance business. Investments primarily serve as a support for financial health and business sustainability. Stable investment performance is expected to cushion claims pressure across several business lines, particularly amid ongoing economic uncertainty.
Credit Insurance Claims Ratio Reaches 85%! AAUI Reveals Root Causes and Threats
The Indonesian General Insurance Association (AAUI) has revealed the reasons for the high claims ratio in the credit insurance sector, which continues to burden the industry’s performance. According to data from the Financial Services Authority (OJK), credit insurance premium income reached Rp 19.67 trillion as of October 2025, while claims reached Rp 16.83 trillion. This situation has pushed the claims ratio to a very high level of 85.56%.
AAUI Chairman Budi Herawan explained that the high claims ratio is inseparable from the characteristics of credit insurance products, which follow financing tenors. Many medium- to long-term loans only show default risk in the current period. Furthermore, the less-than-solid economic recovery has also put pressure on credit quality. Historical challenges such as underwriting weaknesses, premium rate setting that does not fully reflect risk, and the adequacy of technical reserves have also exacerbated claims pressure.
Entering 2026, AAUI estimates that the credit insurance claim ratio could remain high if the quality of the credit portfolio fails to improve. Economic factors, risk concentration in certain sectors, and mismatch between credit tenors and premium and reserve structures are key risks that require vigilance.
In response to this situation, the Financial Services Authority (OJK) has tightened regulations through POJK 20 of 2023, particularly regarding capital, liquidity, risk management, and risk-sharing mechanisms with lenders. The industry is also encouraged to strengthen risk-based underwriting, adjust premium rates actuarially, and implement more disciplined portfolio monitoring to ensure a more sustainable credit insurance business.
Source: https://keuangan.kontan.co.id/news/aaui-ungkap-penyebab-rasio-klaim-asuransi-kredit-tembus-8556
PSAK 117 Smooth Implementation! OJK Optimistic Indonesia’s Insurance Industry is Ready for Healthier Growth
The Financial Services Authority (OJK) confirmed that the overall implementation of Financial Accounting Standards Statement (PSAK) 117 in the Indonesian insurance industry is progressing well. The adoption of this new accounting standard is expected to lay the foundation for a stronger, more transparent, and more sustainable insurance industry going forward. Ogi Prastomiyono, Chief Executive of the Insurance, Guarantee, and Pension Fund Supervisory Agency of the OJK, stated that the majority of insurance companies have submitted financial reports based on PSAK 117.
According to Ogi, only a small number of companies are still in the refinement stage, and most are under the special supervision of the Financial Services Authority (OJK). To ensure consistent implementation, the OJK continues to provide guidance and supervision to ensure PSAK 117 is implemented in accordance with regulations. Starting January 1, 2025, insurance companies are also required to submit quarterly financial reports based on PSAK 117, as stipulated in SEOJK 23/2024.
From a tax perspective, Ogi explained that for the 2025 fiscal year, insurance companies’ tax calculations will still refer to the previous provisions. However, in line with the full implementation of PSAK 117, the Financial Services Authority (OJK) has been closely coordinating with the Directorate General of Taxes at the Ministry of Finance to adjust tax regulations. These adjustments are expected to take effect in the 2026 fiscal year.
This step reflects the regulator’s efforts to align accounting standards, supervision, and fiscal policies, while strengthening governance and trust in the national insurance industry.
Weakening Exports Threaten Marine Cargo Insurance? AAUI Uncovers Challenges & Opportunities for 2026
The Indonesian General Insurance Association (AAUI) assesses that weakening Indonesian exports have the potential to restrain growth in demand for marine cargo insurance. According to data from the Central Statistics Agency (BPS), Indonesian exports have contracted for two consecutive months, with the decline deepening in November 2025 by 6.6% year-on-year, following a 2.31% decline in October 2025. This situation is considered to impact demand for insurance protection, particularly for commodities sensitive to weakening global demand.
AAUI Chairman Budi Herawan explained that, despite the potential for a slowdown, the impact on the marine cargo insurance industry remains relatively limited. AAUI data through the third quarter of 2025 shows marine cargo premiums still growing by around 2.1% year-on-year, even accompanied by a significant decline in claims. This reflects ongoing trading activity, albeit more selectively in terms of volume and value.
Historically, demand for marine cargo insurance has been driven by commodity exports such as coal, minerals, crude palm oil (CPO), agricultural products, and manufacturing, including imports of raw materials and capital goods. To maintain premium growth, AAUI is encouraging insurance companies to expand collaboration with exporters, importers, freight forwarders, and banks, while developing more flexible and digitalized products.
Despite facing challenges such as tariff pressures, intense competition, the complexity of global supply chain risks, and limited risk literacy, AAUI views the marine cargo outlook for 2026 as moderate and selectively positive. The industry’s focus going forward will be on quality growth and more prudent risk management.
Compulsory Insurance for Foreign Tourists Deemed Not Urgent, Observer: Focus on Local Tourists and Disasters
The plan to make travel insurance mandatory for foreign tourists is considered not urgent enough to be implemented in Indonesia. Insurance observer Irvan Rahardjo believes the policy is less relevant compared to the need for risk protection, which has a broader impact on society. He highlighted the relatively small number of foreign tourists, around 1.24 million, far below the number of domestic tourists, which reached 102 million by December 2024.
According to Irvan, considering the national tourism structure, the focus of protection policies should be directed at domestic tourists, whose numbers are much larger. Furthermore, Indonesia’s disaster-prone geography makes implementing mandatory disaster insurance much more urgent and relevant nationally. The risks of earthquakes, floods, and other hydrometeorological disasters have far broader social and economic impacts than those of foreign tourists.
From an industry perspective, Irvan acknowledged that mandatory travel insurance for foreign tourists has the potential to increase general insurance premium revenue. However, he believes the benefits will be uneven. He believes joint ventures and foreign insurance companies will actually benefit the most compared to national insurance companies.
Meanwhile, the Financial Services Authority (OJK) has expressed its support for the plan. However, the OJK emphasized that this policy still requires in-depth study and cross-sectoral coordination, particularly with relevant ministries in tourism and immigration. Therefore, the idea of mandatory insurance for foreign tourists will still undergo a long process before it is fully implemented.
2026 Resolutions Aren’t Just About Career! Experts Reveal 5 Essential Steps to Maintain Financial Health
Amid economic uncertainty, financial planning is crucial, especially at the start of the year when many people begin setting resolutions and goals. Without a clear plan, personal and household finances are vulnerable to disruption due to unexpected expenses amid limited income. Good financial planning is considered to provide direction in managing income, building an emergency fund, and preparing for long-term financial protection.
Yan Ardhianto Handoyo, Faculty Head of Sequis Quality Empowerment at Sequis Life, emphasized that financial planning should be part of your New Year’s resolutions. He believes that planning should be structured and begin with simple steps to ensure consistency. The recommended initial step is to evaluate your financial situation by recording all income and expenses, including small but regular expenses.
The next step is to set clear and measurable financial goals so that funds can be allocated appropriately. After that, consistent budgeting is key to controlling spending, one way to do this is by using the 50/30/20 method. Yan also emphasized the importance of developing assets through investment instruments that align with your goals and risk profile. Finally, financial protection through insurance is considered crucial to anticipate unexpected risks. Yan recommends allocating at least 10% of income for protection to ensure a secure and sustainable financial plan throughout 2026.
Overall, these developments confirm that the Indonesian insurance industry is moving toward a more structured, transparent, and risk-management-driven phase of maturity. Regulatory adjustments, the implementation of new accounting standards, and strengthened oversight demonstrate the regulator’s commitment to maintaining market stability and confidence. However, long-term success remains dependent on the industry’s ability to strengthen underwriting, adapt products to economic dynamics, and improve risk literacy and protection for the public. 2026 will not only be a momentum for growth, but also a test of the insurance industry’s consistency in growing more healthily, prudently, and sustainably.
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