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5 Selected Insurance News for November 2022 – Week Two

Top News Liga Asuransi

Liga Asuransi – Wonderful readers, how are you? See you again in the 5th edition of selected insurance news for November 2022. 

Many things have happened in the insurance world this month. Here we write 5 selected news about insurance for you. If you are interested in this article, please share it with your friends so that they also understand like you.

  1. AAJI: The Transitional Period for the Policy Guarantee Institution can be 2 years

Bisnis.com, JAKARTA – The Indonesian Life Insurance Association (AAJI) views that the transition period for the formation of the Policy Guarantee Institution (LPP) is at most five years considered too long if it refers to Law (UU) No. 40/2014. 

Executive Director of the Indonesian Life Insurance Association (AAJI) Togar Pasaribu reminded that in Law No. 40/2014, the formation of LPP is a mandate of Law No. 40/2014, which states three years later, it was formed. Meanwhile, Togar hopes the LPP can carry out its duties precisely two years after the law was enacted. 

Meanwhile, the transitional provisions related to the Policy Guarantee Program in the draft Law on Strengthening and Development of the Financial Sector (RUU P2SK) in Article 312. The regulation states that implementing the Policy Guarantee Program shall take effect within five years of the Act. Invited. 

Later, the Deposit Insurance Corporation (LPS) will implement the policy guarantee program, whose function is to guarantee insurance customer policies in addition to assuring depositors’ deposits. 

“If we enter the LPS, which we strongly agree with, it means that it is more effective and efficient so that in our minds 2 years should be enough [transition of LPP],” Togar said when met on the sidelines of the launch of the Indonesian Morbidity Table I in Jakarta. , Thursday (10/11/2022).

Togar said that there are three strong reasons for the LPP to be formed in 2 years. First, Indonesia has human resources (HR), reflected in actuarial graduates scattered throughout Indonesia. Second, through discussions with AAJI, AAUI, and AASI. Third, with the joint support of the government and regulators. 

“So in those two years, we hope to start operating [LPP],” he added. Thus, if the P2SK Bill is passed this year, LPP can operate in 2024 in stages, starting with accident insurance products, health insurance products, and long-term insurance products. 

However, Togar said that LPP could cover not all insurance companies. That is, only healthy insurance companies, while for insurance that is not healthy, it must first solve the company’s problems. 

 “LPP must have human resources such as actuaries, risk management, and GCG [good corporate governance] experts,” he said.

Sources:  https://finansial.bisnis.com/read/20221110/215/1596854/aaji-masa-transisi-badan-penjaminan-polis-bisa-2-tahun

 

  1.         PPSK Bill: Sri Mulyani Reveals Urgency of Insurance Policy Guarantee

Bisnis.com, JAKARTA – The Policy Guarantee Program (PPP) in the Draft Law on Development and Strengthening of the Financial Sector (RUU PPSK), aka the omnibus financial law, is considered to be an urgent in the financial services sector, especially non-bank financial industry. 

This was conveyed by the Minister of Finance Sri Mulyani Indrawati in the House of Representatives Commission XI in a Working Meeting with the Minister of Finance, Head of BKPM, Minister of Cooperatives and SMEs, and Menkumham on Thursday (10/11/2022). 

As stated in the draft PPSK Bill, specifically in Article 3A, one of the Deposit Insurance Corporation (LPS) functions is guaranteeing insurance customer policies. Meanwhile, in Part Four of the Policy Guarantee Program Operator Article 78, it is also stated that LPS organizes PPP.

The state treasurer said in addition to strengthening the authority to carry out the function of deposit guarantees and bank resolutions, IDIC will also get a new mandate, namely implementing the Policy Guarantee Program. 

“This policy guarantee program is established to protect policyholders and the insured when the insurance company’s business license is revoked. At the same time, efforts to protect policyholders and insurance should go hand in hand with increasing the supervisory and regulatory functions of the supervisory authority. This is important because it will become the foundation for the health business of the Indonesian insurance industry,” Sri Mulyani explained in the Commission XI Working Meeting on the DPR RI YouTube channel Thursday (10/11/2022). 

Sri Mulyani explained that supervisory regulation activities in the form of insurance company registration, product licensing, consumer education, information disclosure to the public, and capital policies must be implemented optimally before the Policy Guarantee Program can be effectively implemented. 

According to him, the Policy Guarantee Program mandated by IDIC is part of efforts to protect policyholder customers.

“So it is hoped that public confidence in the insurance industry will increase, and this will be one form of building an industry with strong long-term fund management,” he added.

Furthermore, he mentioned that the financial sector is crucial and strategic in supporting the development and welfare of a country. According to him, if the financial industry has a strong, efficient, stable, credible, and inclusive intermediation function, it will improve the Indonesian economy to become a developed country towards high income fairly and equitably. 

Therefore, said Sri Mulyani, the government agreed that the PPSK Bill has strategic value and is essential for efforts to continue Indonesia’s development process in a sustainable and highly competitive manner. “Financial sector reform has a high urgency in the role of intermediation and strengthens financial system resilience. The financial sector still has a lot of fundamental problems. The portion of assets in the non-bank financial industry as a long-term source of funds that can be expected to provide a source of development financing is also relatively small,” he concluded.

Sources:  https://finansial.bisnis.com/read/20221110/215/1596802/ruu-ppsk-sri-mulyani-unjuk-urgensi-penjaminan-polis-insurance.

 

  1.         Pursuing Balanced Premiums, Life Insurance Industry Launches Indonesian Morbidity Table I Specifically for Critical Illness

JAKARTA, KOMPAS.com – The Indonesian Life Insurance Association (AAJI) launched the first edition of the Indonesian Morbidity Table for critical illnesses. 

The launch was carried out in collaboration with the Financial Services Authority (OJK), the Indonesian Actuary Association (PAI), PT Reasuransi Indonesia Utama (Indonesia Re), and Swiss Reinsurance Company Ltd (Swiss Re). 

This morbidity table shows the number of individuals susceptible to the risk of infectious diseases and diseases at each age compared to individuals exposed to the illness who are sick or have infectious diseases at each age. 

The compilation of this morbidity table is based on the insurance industry’s need for a standard reference for actuaries in developing products and determining premiums, especially in life and health insurance products that have protection against critical illness. 

Chairman of the AAJI Management Board, Budi Tampubolon, said that launching Indonesia’s first morbidity table is a shared goal of all life insurance industry players. 

The publication of this morbidity table is one of the life insurance industry’s efforts to strengthen protection for policyholders. The trick is to determine a more balanced premium value. 

“Since the beginning of its formation, AAJI has fully supported the drafting team to collaborate to create a reference for all industry players in setting balanced premiums for companies and customers, especially for life insurance products that have critical illness protection benefits,” he said at a press conference Launching the Table. Indonesian Morbidity I, Thursday (10/11/2022). 

He added that the launch of this morbidity table is also an effort by the life insurance industry to create a quality industry that is loved by the public. 

Budi detailed that the morbidity table was compiled based on 11.5 million exposure data and 68,000 claims data collected based on the experience of life insurance companies in 3-2017.

Meanwhile, the data collection process is the most crucial and takes a long time to get results reflecting the level of morbidity of the insurance industry in Indonesia.

The results of the analysis and conclusions in this morbidity table present data on 35 types of critical illness, covered mainly by life insurance companies. 

Meanwhile, Advisor to the Non-Bank Financial Industry Supervisory Department of the Financial Services Authority (IKNB OJK) Sumarjono said the life insurance industry must continue to tighten the implementation of corporate governance through the use of this morbidity table. 

“As the basis for determining premiums on life and health insurance products, especially for critical illness protection,” he said. 

With this particular critical illness morbidity table issuance, OJK hopes that the life insurance industry can provide a balanced premium value to customers. In addition, Sumarjono also hopes that the balanced premium assessment will take into account the business continuity of the life insurance industry. 

With the publication of the Indonesian Morbidity Table I specifically for Critical Illness, it is hoped that all life insurance industry players can use this table to create product innovations that adapt to the community’s needs.

The results of the analysis and conclusions in this morbidity table present data on 35 types of critical illness, which life insurance companies mainly bear. 

Meanwhile, Advisor to the Non-Bank Financial Industry Supervisory Department of the Financial Services Authority (IKNB OJK) Sumarjono said the life insurance industry must continue to tighten the implementation of corporate governance through the use of this morbidity table. 

“As a basis for determining premiums on life and health insurance products, especially for critical illness protection,” he said. With the publication of this unique critical illness morbidity table, OJK hopes that the life insurance industry can provide a balanced premium value to customers. 

In addition, Sumarjono also hopes that Balanced premium coverage still pays attention to the business continuity of the life insurance industry. With the publication of the Indonesian Morbidity Table I specifically for Critical Illness, it is hoped that all life insurance industry players can use this table to create product innovations that can adapt to the needs of the community,” he concluded

. https://money.kompas.com/read/2022/11/10/171000926/kejar-premi-berimbang-industri-asuransi-jiwa-laukan-tabel-morbiditas?page=2.

 

  1.         The establishment of the Policy Guarantee Institution takes time. This is the response of AAUI

KONTAN.CO.ID – JAKARTA. The establishment of a Policy Guarantee Agency is an urgent need during a situation where several insurance companies fail to pay. It is mandated by Law Number 40 of 2014 concerning Insurance.

The formation of this institution can be realized because it has been confirmed in the Draft Law (RUU) for the Development and Strengthening of the Financial Sector (P2SK) or the Financial Omnibus Law, which states that this program will be run by the Deposit Insurance Corporation (LPS).

However, the Chief Executive of the Non-Bank Financial Industry Supervision (IKNB) of the Financial Services Authority (OJK), Ogi Prastomiyono, said that it was not confident that this institution would be formed this year. Ogi estimates that the P2SK bill will be completed within 3 years at the earliest and 5 years at the longest.

Similarly, the Chairman of the Board of Commissioners of the Deposit Insurance Corporation, Purbaya Yudhi Sadewa, said that LPS takes up to 5 years to be able to carry out its function as a guarantor for the insurance industry.

Meanwhile, the Executive Director of the Indonesian General Insurance Association, Bern Dwyanto, said that the policy guarantor institution should have been formed about 5 years ago in 2017.

“The important thing is that the process must start immediately and start now,” Bern told KONTAN Wednesday ( 9/11).

Bern hopes the policy guarantee institution can be formed before the current OJK period ends.

Sources: https://keuangan.kontan.co.id/news/penjamin-pols-need-time-begini-respons-aaui 

 

  1. Abortion and HIV Patient Data Leaks, Hackers Demand IDR 100.8 Billion to Australian Insurance

TEMPO.CO, Jakarta – A hacker has demanded nearly Aus$10 million or around Rp100.8 billion to stop leaking Australian medical records in one of the worst cyber attacks in the country.

In a message posted on the dark web on Thursday, 10 November 2022, as reported by Al Jazeera, the hackers said they were demanding Aus$1 from Medibank, Australia’s largest private health insurance company, for each of the 9.7 million customers affected by the breach. Big data last month.

The hacker also posted information linking clients to their abortion programs after releasing a “rogue list” earlier this week to show clinicians receiving treatment for addiction, mental health problems, and HIV.

Medibank CEO David Koczkar on Thursday condemned the hacker’s actions as “shameful” while repeating an apology to customers.

“We remain committed to fully and transparently communicating with customers, and we will contact customers whose data has been released on the dark web,” said Koczkar.

“Wearing people’s personal information to extort payments is dangerous, and it attacks the most vulnerable members of our community.”

Medibank has refused to pay the ransom, citing advice from cybercrime experts that it will not ensure the return of customer information. Moreover, it could harm more people by making Australia a bigger target.

Local media have linked a dark web forum used to post the hacked data to the crime group REvil. According to Russian authorities, this web forum was closed earlier this year at the request of the United States.

The Australian Federal Police, investigating the cyberattack, have warned that downloading or accessing data could be a criminal offense.

Home Secretary Clare O’Neil described the hackers as “criminal bastards.” “I cannot express the disgust I have for the bastard at the heart of this criminal act,” O’Neil told parliament on Wednesday.

The cyber attack, which first came to light last month, is the latest in a series of significant data breaches to rock Australia. Optus, Australia’s second-largest telecommunications provider, announced in September that the data of up to 10 million subscribers had been compromised in a cyberattack against the company.

Sources: https://dunia.tempo.co/read/1655257/bocorkan-data-patient-aborsi-dan-hiv-hacker-tuntut-rp1008-m-ke-asuransi-australia

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