Liga Asuransi– The Indonesian insurance industry is entering a new, dynamic chapter. From regulators’ efforts to strengthen the national reinsurance sector, to the surge in the number of life insurance insured, to the impact of global losses due to natural disasters—all show how important insurance is in facing the challenges of the economy and the ever-growing risks. In this edition, we summarize seven of the latest and most comprehensive insurance news that you need to know, including the government’s plan to prepare special insurance for the free meal program after the mass poisoning incident at school. Read more to get the latest insights into the world of insurance, both domestically and internationally.
Premiums Flow Abroad! OJK Opens Doors for Foreign Reinsurance to Enter Indonesia!
Financial Services Authority (OJK)is preparing strategic steps to strengthen national reinsurance capacity by invitingglobal reinsurance companyopen a branch office in Indonesia.
According to Ogi Prastomiyono, Chief Executive of the Insurance, Guarantee and Pension Fund Supervisory Agency (PPDP), currentlythe majority of reinsurance premiums are spent abroadby domestic insurance companies. Therefore, OJK is reviewing the regulations related toforeign ownershipin the reinsurance sector to provide flexibility that allows global companies to be directly present in Indonesia.
“We are coordinating with the relevant ministries to revise the regulations so that foreign reinsurance companies can open branch offices in Indonesia,” said Ogi inPress Conference of the Results of the Monthly Board of Commissioners Meeting (RDK) April 2025, quoted on Monday (12/5/2025).
Ogi emphasized thatreinsurance industry capacity not only depend on capital or equity, but also oncompetence and technical abilityin conducting selection and risk assessment (underwriting). This has been regulated inPOJK Number 23 of 2023regarding minimum equity for reinsurance.
Furthermore, he said thatdigitalization and utilization of artificial intelligence (AI)will be crucial to improving the quality of underwriting. This technology will help assess previously unreachable risks and speed up data processing in the underwriting and claims process.
OJK also encourages insurance and reinsurance companies to be more disciplined in presentinginsurance data, to make sure the claims process is faster and more efficient.
This step is important consideringnational reinsurance deficit continues to widenin the last three years. It was recorded that the deficit reached:
- Rp7.95 trillionin 2022
- Rp10.20 trillionin 2023
- And Rp12.10 trillionin 2024
This figure shows that the amount of reinsurance premiums paid abroad is much greater than that received from abroad.
Life Insurance Industry 2025 Predicted to be Even More Promising! Number of Insured Soars, Premiums Reach IDR 185 Trillion!
Indonesian Life Insurance Association (AAJI)expressed optimism that the life insurance industry will record positive growth throughout 2025. This belief is based on the stable trend and increase recorded throughout 2024.
Executive Director of AAJI,The Market Place, revealed thatLast year’s premium income grew 4.3% annually (YoY), reaching IDR 185.39 trillion.
Togar explained that there are several factors that drive this growth. One of them is the increasing public awareness of the importance of life and health protection, especially after the Covid-19 pandemic.
Evidence of increasing public interest can be seen fromthe surge in the number of insured people reaching 154.64 million people by December 2024, or grow up to80.1% compared to the previous year. According to Togar, this increasing trend is expected to continue in 2025.
Besides that, there are stilllow penetration of life insurance in Indonesia, which is new around7.7% of the total population, is a very large market potential for industry players.
In order to reach unprotected community groups,AAJI encourages the development of simpler, more flexible and more affordable insurance products., especially for the lower middle income group.
Togar also emphasized the importance of utilizingdigital technologyin order to expand distribution and simplify the policy acquisition process. On the other hand,increasing public financial literacy and educationis also considered crucial, so that prospective customers increasingly understand the benefits and mechanisms of life insurance.
“This combination of innovative strategies will strengthen sustainable growth in the life insurance industry. We are confident that AAJI members can maximize the potential of the domestic market which is still very large,” said Togar.
For additional information, dataFinancial Services Authority (OJK) show that Life insurance premium income until March 2025 reached IDR 47.19 trillion, up 3.08% compared to the same period the previous year.
Massive California Wildfires Make Global Reinsurance Giants Stumble! Global Insurance Losses in 2025 Could Break Records!
The two largest reinsurance companies from Germany,Munich Re And Hannover Re, noted sharp decline in earnings in Q1/2025, especially due to the surge in claims frommassive wildfires in Los Angelesearlier this year. The disaster killed nearly 30 people and destroyed more than 16,000 buildings—devouring an area larger than Paris.
CEO Hannover Re, Clemens Jungsthoefel, stressed that the fire was clear evidence of howclimate change exacerbates the risk of extreme weather.
Despite falling profits, both Munich Re and Hannover Remaintain their net profit target for 2025.
Munich Re, asthe world’s largest reinsurance company, reported net incomedown to 1.09 billion euros, from 2.115 billion euros in the same period the previous year. This result slightly missed analysts’ expectations of a profit of 1.11 billion euros. Even so, the company remains optimistic about maintainingannual profit target of 6 billion euros, up from 5.7 billion euros in 2024.
Meanwhile, Hannover Re experience 14% decline in profits annually, down to 480 million eurosfrom the previous 558 million euros. Although pressured by forest fire claims worth631 million euros, the profit figurestill slightly above analyst expectationswhich predicts 447 million euros.
In a broader context,Swiss Re, a Swiss reinsurance company, noted thatGlobal insurance losses from natural disasters to reach US$137 billion by 2024, and is predicted to increase toUS$145 billion by 2025, making this year one of the years with the biggest insurance loss in history.
Most of the losses come frommedium scale natural disaster, especially severe convective storms (SCS), despite major threats such astropical cyclones and earthquakesstill dominates the potential risks.
For example, in 2017, hurricanes Harvey, Irma, and Maria caused global losses surge 111% above annual average. Swiss Re added thatwildfires in californiaestimated to contribute to insurance losses ofUS$40 billion.
Furthermore, Swiss Re warned thatrisks continue to increase with urban expansion, economic and population growth, as well as the impacts of climate change, which are significantlyexacerbating the frequency and intensity of extreme weather disasters.
If you take into accountuninsured loss, total losses due to natural disasters in 2024 reach US$318 billion, up from US$292 billion in 2023, and well above the long-term average.
Insurance Premiums Weak in Early 2025! But Industrial Assets Reach IDR 1,100 Trillion, What’s Behind It?
The Financial Services Authority (OJK) reported thatCommercial insurance industry premium income in Indonesia is still declininguntil March 2025. Chief Executive of the OJK Insurance, Guarantee and Pension Fund Supervisory Agency,Ogi Prastomiyono, said that the premiums collected from January to March 2025 were recorded atRp87.71 trillion, decreased slightly by0.06% year-on-year (YoY).
In detail,Life insurance premiums rose 3.08% YoY to Rp47.19 trillion, temporary general insurance and reinsurance premiums fell 3.50% YoY to Rp40.52 trillion.
This decrease is lighter than the previous month. For the period January-February 2025, the total premium hadcorrected 0.94% become Rp60.27 trillion, with life premium growth reaching 5.16% and a deeper decline in general insurance and reinsurance premiums, amounting to 7.17%.
Despite weakening premium income,Total assets of the insurance industry are still experiencing positive growth. As of March 2025, total industrial assets were recorded atRp1,145.63 trillion, up 1.49% YoY. Of that amount,Commercial insurance contributed Rp925.37 trillion, grew 1.80% YoY.
The capitalization of this sector also remains strong, with the solvency ratio (Risk Based Capital/RBC) for life insurance reaching467,73%and general insurance and reinsurance amounting to316,96%, far above the minimum limit set by OJK, namely 120%.
Meanwhile, in the sectornon-commercial insurance-which include BPJS Health, BPJS Employment, and pension programs for ASN, TNI, and Polri—total assets as of March 2025 reachedRp220.26 trillion, grew 0.20% YoY.
For pension fund industry, asset growth is much more significant, up6,15% YoY become Rp1,524.92 trillion. The details,voluntary retirement programrecorded assets of IDR 383.13 trillion (up 2.43% YoY), andmandatory pension programrecorded IDR 1,141.79 trillion (up 7.46%).
However, guarantee companies actually recorded asset contraction, down 0.52% YoY to Rp47.12 trillion, because the realization of the government guarantee program is still limited.
From the supervision side, OJK stated109 of 144 insurance and reinsurance companieshas met the minimum first-stage equity requirement to be met in 2026—up 3 companies from the previous month.
OJK is also still doingspecial supervision of 6 insurance and reinsurance companies, as well as 11 pension funds, to help solve their financial problems and protect the interests of policyholders.
As a policy step, OJK has issuedtwo new rulesin the guarantee sector throughPOJK No. 10 and No. 11 of 2025, as well as compiling SEOJK draftfor periodic reporting by insurance brokerage firms, reinsurance brokers, and loss assessors.
Not Sharia Banks, But Sharia Insurance That Will Be the Primadonna! This is What OJK Says About Its Huge Potential in Indonesia
Financial Services Authority (OJK)assess thatThe sharia insurance industry in Indonesia has enormous growth potential, even exceeding the Islamic financial sector as a whole. This was conveyed byDeputy Commissioner for Supervision of Insurance, Guarantees, and Pension Funds of OJK, Iwan Pasila, on Thursday (8/5/2025).
According to Iwan,The potential of sharia insurance has not yet been fully exploited, thus opening up huge opportunities for expansion.”The potential is much greater because currently not many people are developing it,” he said.
Based on data fromNational Committee for Sharia Economics, total assets of the Islamic financial sector in Indonesia in 2024 will reachRp2,883 trillion, with market share of 12%. However, the portion for the sharia insurance industry itself is still relatively small.
Iwan added, in recent years,The MUI National Sharia Council has issued a number of new fatwaswhich can be the basis for insurance companies in creatinginnovative sharia products.
From the regulatory side, OJK encourages product development not to stop at “sharia label” that is attached to conventional products, but actually hasauthentic sharia features, structure and principles.
OJK also highlighted the importance ofcreation of sharia investment assetswhich can be used by insurance companies to support their liabilities.Availability of sharia assets with appropriate time periodwill be the key to developing sustainable sharia insurance products.
Furthermore, OJK also emphasized the need for improvementSharia Competenceamong insurance industry players, so that they are able to capture increasingly large market opportunities and demand authentic and trusted sharia-based products.
From the performance side,Sharia insurance industry assets show positive trend in early 2025. OJK data notes:
- Sharia general insurance assetsas of January 2025 reachedRp9.46 trillion, grow 8,9% YoY
- Sharia reinsurance assetsrecordedRp2.96 trillion, go on 7% YoY
- Sharia life insurance assetsrecorded atRp33.99 trillion, grow 3,65% YoY
With this trend, the sharia insurance industry is believed to be one of the main driving forces in the national sharia financial ecosystem in the future.
Hundreds of Students Poisoned! Government Prepares Special Insurance for Free Meal Program!
The government is currently preparinginsurance schemeas part of the programFree Nutritious Meals (MBG)to anticipate possible risks, one of which isfood poisoning. Based on data fromNational Nutrition Agency (BGN), since the program started in January 2025, it was recorded327 students experienced poisoning.
Dody Achmad Sudiyar Dalimunthe, President Director of PT Asuransi Asei Indonesia, said that the role of insurance is not only limited to financial protection, but is also a…part of social infrastructurewhich supports the welfare of society as a whole. He emphasized that insurance has a strategic role in ensuringcontinuity and resilience of government social programs like MBG.
According to Dody, there isfive main roles of insurance in the MBG program:
- Ensuring operational continuity:MBG involves many parties, from food suppliers to schools and health facilities. Insurance can protect against distribution risks, transport vehicle accidents, food damage, and disasters in the kitchen or storage warehouse.
- Protecting beneficiaries:Liability insurance can providecompensation and legal protectionif there is a health problem or food poisoning.
- Protection for the workforce:Workers involved in food processing and distribution are at risk of experiencinginjury, work accident, disability or death. Insurance can guarantee their safety.
- Promoting transparency and accountability:With insurance as part of the performance assurance system, the government can minimize losses if third parties, such as catering vendors, fail to meet quality or time standards.
- Increasing public trust:The presence of insurance makes people more confident that this program is managed professionally andready to face the risk, especially in the early stages of implementation or when the program is expanded.
Despite the huge benefits, Dody said that until now there has been no official information about his company’s direct involvement. Currently, discussions on the MBG insurance scheme are still ongoing betweenOJK, AAUI, and AAJI. Dody also emphasized the importance ofclear communicationso that this information does not cause misunderstanding in the community.
Askrindo Insures Fleet of Ships for Rp591 Billion! This is a Big Strategy to Support the Indonesian Maritime Industry
PT Indonesian Credit Insurance (Askrindo)strengthen its commitment to supporting the sectornational maritimeby givinginsurance protection for hundreds of ships owned by PT Transcoal Pacific Tbk.
According to Askrindo Business Director, Budhi Novianto, this protection is provided through productsFleet Hull and Machinery Insurance, with an insurance value reachingRp591 billion.
This insurance product is designed to provide comprehensive protection for ships and their equipment fromvarious operational risks at sea, including physical damage due to accidents, fires, and explosions.
“With Marine Hull Insurance, we provide maximum protection so that ship operations continue to run smoothly,” said Budhi in an official statement on Thursday (15/5).
The guarantee of the Transcoal fleet of ships was carried outthrough consortium cooperationinvolving several large insurance companies, including:
- PT.
- PT.
- PT. Jasindo Insurance
- PT. Tripakarta Insurance
- Facilitated byPT BGIB Insurance Brokers
Budhi emphasized,This collaboration between insurance companies is expected to become a model of future synergy., which can inspire other business actors to strengthen the resilience of the national industrial sector.
“This collaboration is real evidence of the solidarity and synergy of the insurance sector in supporting the maritime industry and the national economy,” he concluded.
Thus is the summary of the latest insurance news that describes the direction of development of this industry in 2025. In facing increasingly complex risk dynamics—both from the economic, social, and environmental sides—requires reliable and experienced partners. This article is supported byL&G Insurance Broker, company insurance brokerIndonesia’s leading insurance broker that has proven to be an expert in providing insurance solutions for industrial and project needs. Consult your protection needs with L&G Insurance Broker, and ensure that your business is always under the best protection.
