Ulas Berita

5 Selected Insurance News for September 2022

Top News Liga Asuransi

Liga Asuransi – Dear readers, how are you? See you again in the 5th edition of selected insurance news for September 2022 in the last week.

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. OJK Alludes to ‘Begging’ Premiums and Repentance When Credit Insurance Claims Soared

Bisnis.com, JAKARTA – The Financial Services Authority (OJK) said that one of the serious problems faced by the general insurance industry today is the surge in credit insurance claims. Insurance companies are also reminded to improve the credit insurance business model so that it does not have a systemic impact in the future.

Deputy Commissioner for Supervision of IKNB II OJK Moch. Ihsanuddin reminded insurance companies not to be careless in accepting the credit insurance business without ensuring that the financing or credit products for which the risks will be guaranteed are of good quality.

Credit insurance players are also asked to improve the terms and conditions of the credit insurance business, including in terms of setting premium rates. Insurance companies that issue credit insurance policies and credit insurance business providers must be able to sit together so that they can understand each other that problems in the credit insurance business must be addressed together so as not to cause unexpected systemic impacts. 

“It is no less important in terms of premium rates. We don’t want us [insurance companies] to be colonized as if we were ‘begging’ so we can be suppressed. This needs to improve terms and conditions by sitting together, understanding each other,” said Ihsanuddin at the Indonesia Re International event. Conference 2022, Thursday (29/9/2022). 

Then, he also highlighted the excessive commissioning by insurance companies in acquiring credit insurance businesses to banking partners or financial institutions.

“The commission issue, my friends from the insurance industry, please repent. Let’s not always compete, always sell out. This commission is a trivial matter, but this will have an impact if the credit quality is not good, the business is long,” he said.

The credit insurance business practice, according to him, has made it difficult for reinsurance companies to retrocession credit insurance risks abroad. The difficulty of domestic reinsurance companies to transfer some of their risks abroad is feared to make risks concentrated in the country. In OJK’s observation, recently, several reinsurance companies have had difficulty paying claims. 

Therefore, he cautioned insurance companies to be able to sit together with relevant stakeholders in improving the governance of the credit insurance business. 

“Later we need to sit down together or come forward together. It’s like if we go forward alone we are afraid, are we together like a consortium, a joint war. We need to explore ideas like that so that we have the same position, we have a good bargaining position so that we don’t seem if we become premium beggars. This is what we did not expect,” said Ihsanuddin.Source : https://finansial.bisnis.com/read/20220930/215/1582579/ojk-tang-jual-ngemis-premi-dan-tobat-saat-klaim-asuransi-kredit-melonjak.

 

  1. Credit Insurance Improvement Needs Banking Support

JAKARTA – Insurance industry players need support from banks to overcome the surge in credit insurance claims. The existence of credit business governance problems has suppressed the performance of insurance companies.

Technical Director of PT Asuransi Kredit Indonesia (Askrindo) Vincentius Wilianto revealed that Askrindo is restructuring its consumer credit insurance portfolio in line with the higher ratio of credit insurance claims. According to him, in carrying out the restructuring, banking support is needed.

“Some of the cases we succeeded in carrying out this restructuring needed the support of the banking sector because like it or not, it must be admitted that banks in the past had enjoyed a secure bottom line, without knowledge or deep understanding from the insurance side that [accepting high risk credit] led to suicide in Indonesia. on the insurance side,” said Vicentius at the Indonesia Re International Conference 2022, Thursday (29/9/2022). 

He said the banking sector is expected to provide concessions in the restructuring process. He gave an example of an insurance company with a negative risk-based capital (RBC). However, due to the support from banks to restructure its credit insurance portfolio, there is an opportunity for RBC to return to the positive zone. 

Meanwhile, in improving credit insurance business governance, there are things that insurance companies must implement in the future. Some of them such as there must be risk sharing between banks and insurance, and general insurance companies do not cover natural death.

“This may be difficult for banks to accept, namely the yearly renewable term. Don’t have long-term contracts, but one year can be renewed because so we can change the terms and conditions if the results are far from expectations. Premium payments also follow yearly, it should be an annual premium, not a single premium. Once there is a single premium, the premium is wrong, it has been locked for a long duration of up to 20 years,” said Vincentius. 

Meanwhile, the Executive Vice President of Risk Management at PT Bank Central Asia Tbk. (BCA) Eduard Guntoro Purba said that the fundamental problem in the credit insurance business is a structural problem, so improvements must be made structurally.

On the other hand, he believes that it is also necessary to analyze which credit segment is depressing the performance of credit insurance. 

“This is not only the insurance industry’s PR but also the regulators are helping. Because banks are heavily regulated, in helping [insurance companies] also need [regulation] doors to be able to help,” he said.

Source : https://finansial.bisnis.com/read/20220930/215/1582705/perbaikan-asuransi-kredit-need-support-perbankan.

 

  1. Coordinating Minister Airlangga Reveals Reinsurance Market Share in Indonesia

Bisnis.com, JAKARTA – Indonesia’s economic growth is expected to be a catalyst for the development of the insurance industry so as to spur the reinsurance industry.

Coordinating Minister for the Economy Airlangga Hartarto said that in the midst of looming global uncertainty, Indonesia still has domestic economic conditions. Currently, Indonesia recorded economic growth of 5.44 percent in the second quarter of 2022. When compared to other countries, said Airlangga, Indonesia is in a strong position among the seven countries in the world.

At the same time, referring to OJK data in July 2022, Airlangga said the total assets of the insurance industry had reached IDR 1.738 trillion, while insurance assets only contributed 2.1 percent or IDR 35.76 trillion, but grew 33.6 percent compared to December 2019. This means that Indonesia needs reinsurance to play an important role in ensuring the insurance industry recognizes what exposures to expect in the near future.

“There are only eight reinsurance players in Indonesia. So the market share is still large, considering the number of Indonesian insurance players is around 138 companies,” said Airlangga at the Indonesia Re International Conference 2022 entitled ‘Reinsurance and Economic Resilience: Dealing with Climate Change, Pandemic and Geopolitical Challenges’, Wednesday (28/9/2022). ). 

The Coordinating Minister for the Economy for the 2019-2024 period said that most Indonesian insurance companies still place their risk on foreign reinsurance. To that end, the government issued Government Regulation 3 of 2020 to relax foreign ownership limits on insurance-related businesses. 

In addition, Airlangga said that currently Indonesia was faced with unexpected risks, ranging from technology, climate and natural disasters, and new types of diseases. 

“Indonesia has to get used to another storm to come and we have to be alert and ready to deal with it. Therefore, this is the right time for reinsurance to take this uncertainty as an opportunity to participate in maintaining national economic resilience,” he concluded.

Source: https://finansial.bisnis.com/read/20220928/215/1582247/menko-airlangga-unjuk-pangsa-pasar-reasuransi-di-indonesia.

 

  1. Pay IDR 3 Trillion for Natural Disaster Mitigation, Ministry of Finance: Opportunity for Insurance 

Bisnis.com, JAKARTA – The Ministry of Finance (Kemenkeu) hopes that the existence of the insurance industry can fill the government budget gap that occurs in the allocation of natural disasters. This is also considered to be an opportunity for the insurance and reinsurance industry.

Expert Staff of the Minister of Finance for Financial Services and Capital Markets Titik Anas said the government still has a budget gap with the needs of disaster-affected areas. The Ministry of Finance noted that during 2010 – 2017, the government had allocated more than IDR 3 trillion for natural disaster mitigation.

“In the future, we really hope that insurance companies and industry can help fill gaps like in other countries, including, for example, mitigating global risks. So that the fiscal burden can be allocated for other productive uses. This will certainly open up opportunities for the insurance and reinsurance industry,” said Titik at the 2022 Indonesia Re International Conference entitled ‘Reinsurance and Economic Resilience: Dealing with Climate Change, Pandemic and Geopolitical Challenges’, Wednesday (28/9/2022). 

In addition, Titik said that the government and authorities in the financial services sector also continue to support the development of the Indonesian financial market. The Draft Law on Development and Strengthening of the Financial Sector (RUU P2SK) or the omnibus law on financial services, for example, can reform the financial sector in the country.

“The P2SK bill is expected to increase access to the financial sector, expand long-term financial resources, improve sector competitiveness and efficiency, develop instruments and some strengthen risk mitigation, improve investor and consumer protection, and strengthen the integrity and quality of financial sector human resources, strengthen financial governance and the role of reporting and supervision in the sector,” he said. 

Furthermore, Titik added that the bill is also expected to provide reforms in financial regulations to increase efficiency and certainty as well as open up opportunities for prudent financial markets that will contribute positively to supporting economic growth. 

“With this reform of the financial sector, it is hoped that the financial sector can play an increasingly important role during the functioning of the economy with a healthy and efficient intermediation function,” he concluded.

Source: https://finansial.bisnis.com/read/20220928/215/1582283/pay-rp3-triliun-mitigasi-bencana-alam-kemenkeu-peluang-bagi-insurance.

 

  1. Unpaid Insurance Claims, Customers in Medan Ask OJK to intervene


Medan – A customer from Medan, Jhoni Halim, admitted that his insurance claim had not been paid by PT insurance. Panin Dai-Ichi Life even though there has been a final decision from the court. The customer also requested that the Financial Services Authority (OJK) intervene to handle this issue.

“So the key to this problem is now with the OJK. On that basis, we submit this matter to the OJK,” said the team of lawyers from Jhoni Halim, Junirwan Kurnia in Medan, Thursday (29/8/2022).
Junirwan said that the initial payment of the claim to his client was Rp 1 billion. But that number is now increasing with interest as decided by the court.

Junirwan said that PT. Panin Dai-Ichi Life filed a lawsuit on this issue to the Supreme Court. However, Junirwan said his client had won the lawsuit according to the Supreme Court’s decision number 674 PK/Pdt/2022.

“From a legal point of view, there is no longer any barrier for OJK because our clients are entitled to receive claims payments,” said Junirwan.

Junirwan said that until now the insurance company has not had good faith to pay claims to its clients. For that he asked for firmness from the FSA against the insurance company.

“We have written to the OJK regarding this issue, but until now the OJK has not informed them of the process they are carrying out for this matter. There is no reason for OJK to be afraid of a company like this,” said Junirwan.
In accordance with Article 77 Paragraph (1) POJK No. 69/POJK.05/2016, OJK may issue written warnings, restrictions on business activities, for part or all of business activities and up to the revocation of business licenses.

Meanwhile, Article 77 Paragraph (4) states that in addition to the administrative sanctions as referred to in Paragraphs (1) and (2), OJK may add additional sanctions in the form of a prohibition on marketing insurance products, then a prohibition on becoming a shareholder, controller, directors, board of commissioners. , or the equivalent of shareholders, controllers, directors and boards of commissioners or occupying executive positions under the directors or equivalent to executive positions under directors in insurance companies.

“If PT Panin Dai-Ichi Life does not fulfill its obligations, then we will report this problem to Commission XI of the DPR RI. We will report OJK to members of the DPR. We also ask the KPK to supervise OJK,” explained Junirwan.

Source:  https://www.detik.com/sumut/.

This information is presented by L&G Insurance BrokerThe Smart Insurance Broker 

LOOKING FOR INSURANCE PRODUCTS? DON’T WASTE YOUR TIME AND CONTACT US RIGHT NOW

L&G HOTLINE 24 HOURS: 0811-8507-773 (CALL – WHATSAPP – SMS)

website: lngrisk.co.id

E-mail: customer.support@lngrisk.co.id

To Top
L&G Risk Registered by Otoritas Jasa Keuangan KEP-667/KM.10/2012
Butuh perlindungan segera?
Chat kami di WhatsApp untuk solusi asuransi yang cepat dan mudah!
Butuh perlindungan segera?
Chat kami di WhatsApp untuk solusi asuransi yang cepat dan mudah!
OJK Registered KEP-667/KM.10/2012