Liga Asuransi – Dear readers, how are you and your business doing? I hope you are in good condition and keep moving forward.
Entering the last week of the first quarter of 2023, we will always present selected and up-to-date information about insurance news in Indonesia.
Here we have summarized seven news update options for you. If you are interested in this article, please share it with your colleagues so they understand like you.
IFG Research Bureau Releases 2023 Life Insurance Premium Projection, Better?
Bisnis.com, JAKARTA — The Research Bureau belonging to the holding BUMN insurance and guarantee (Indonesia Financial Group/IFG), IFG Progress, projects that life insurance premiums can experience high growth (rebound) in the range of 2.2 percent to 5 percent on an annual basis (year-on-year/yoy) this year or around IDR 173 trillion.
IFG Progress Senior Research Associate Ibrahim Kholilul Rohman said the life insurance premium projection was based on comparative findings from around 48 countries.
“We found that the range for growth in life insurance premiums is 2.2 percent – 5 percent yoy in 2023,” Ibrahim said in a Media Gathering entitled Prospects for the Insurance Industry 2023 in Jakarta, Tuesday (21/3/2023).
As for 2022, the life insurance industry’s premiums will contract by -7.3 percent yoy from the previous year. The decline in premiums in the life insurance industry was driven by a decrease in premiums on unit-linked products, which reached around -16 percent yoy.
While traditional products show growth of up to 4 percent yoy. “Life insurance is still growing, of course in 2022, life insurance premiums will drop because our condition has not completely recovered from the pandemic, but in 2023 [life insurance] will rebound,” he said.
For three money, IFG Progress also projects that claims on the life insurance industry in 2023 are expected to be in the range of 5% – 9% to IDR 166 trillion, assuming that Indonesia’s economic growth is in line with the government’s projection, which is growing by around 5.3%.
Policy Holders Submit Claims Measuring the Life Insurance Business 2022, Premiums Are Pressured Customers Are Increasingly Guessing the Direction of the Kredivo Business at Krom Bank (BBSI) Along with the IDR 4 Trillion Funding Round “For life insurance claims it is estimated to grow in the range of 5.5 percent – 9 percent,” he continued.
Referring to performance throughout 2022, claims in the life insurance industry have been observed to have contracted. The decline in claims was driven by a decrease in claims or surrenders on traditional products of around -4% but claims on unit-linked products increased by around 3%.
Overshadowed by challenges, general insurance premiums are projected to grow 6 percent
Bisnis.com, JAKARTA — The Indonesia Financial Group (IFG) through IFG Progress projects that general insurance premiums can grow by 6 percent annually (year-on-year/yoy) to IDR 95.57 trillion in 2023, in line with projected economic growth. 5.3 percent yoy.
IFG Progress Senior Research Associate Ibrahim Kholilul Rohman said that the inertia of the general insurance industry in Indonesia is still very dependent on macroeconomic conditions, especially domestic economic growth, and per capita spending.
“This general insurance is a business leader highly dependent on macro conditions. This means that it is very, very much macro-economy dependent. Still, we are optimistic that growth will increase because the indicators are pointing in that direction,” said Ibrahim in a Media Gathering entitled Prospects for the Insurance Industry 2023 in Jakarta, Tuesday (21/3/2023).
Ibrahim considers that the development of the Indonesian general insurance industry is still classified as underdeveloped with a low level of penetration and density with market potential that can still be developed.
At least three business lines support growth in the general insurance business, namely the motor vehicle industry, property, and banking credit. “Those [three business lines] are all dependent on macro conditions. If macro conditions improve, general insurance premiums will increase. If the macro worsens, it will also get worse,” he explained.
Profile of Hexana Tri Sasongko and Haru Koesmahargyo, IFG’s New Managing Director & Deputy Director OJK Revokes Wanaartha Life’s Business License, How Much Total Assets Have Been Collected? Meanwhile, from the claims side, the general insurance industry is projected to grow 10% yoy to IDR 45.94 trillion in 2023.
“In general, the development of the general insurance industry in Indonesia is still facing challenges, both in terms of potential market development and capital strength through asset quality,” he said.
Referring to data from the Indonesian General Insurance Association (AAUI), the insurance industry’s premiums grew by 15.3 percent yoy to IDR 90.1 trillion in 2022. The biggest premium contribution to the general insurance business came from the property business line, which accounted for 29 percent of the total premium—a growth of 17 percent yoy.
Meanwhile, in terms of claims, the general insurance industry recorded a claim growth of 36% yoy to IDR 41.7 trillion in 2022, with the most significant contribution coming from the credit insurance business line with a percentage of 30% of total claims with a growth of 65% yoy.
This is AJB Bumiputera’s Strategy to Maintain the Continuity of Delayed Claim Payments
KONTAN.CO.ID – JAKARTA. All efforts are made by AJB Bumiputera 1912 to ensure that the payment of pending claims of policyholders continues. One of them is by releasing the assets that should be released.
Understandably, for the payment of claims in the past three weeks, AJB Bumiputera used guarantee funds disbursed from the Financial Services Authority (OJK) worth IDR 120 billion. Now, claims that have been paid to reach IDR 63.1 billion.
Considering that the need for funds is getting bigger, now the management of AJB Bumiputera is selling off Hotel Bumi Surabaya’s assets, which are said to have five potential buyers of these assets.
“The price range is above Rp. 1 trillion. I hope it will be sold in about two weeks,” said AJB Bumiputera Main Director Irvandi Gustari during a recent visit to KONTAN.
Irvandi revealed the reason for selling the hotel’s assets was because it did not provide good dividends where the hotel’s occupancy rate is around 60%.
He also said that selling these assets was part of the regulator’s advice. Considering this, AJB Bumiputera has no experience managing the hotel business.
Not only that but for other building assets, Irvandi said that asset optimization would be carried out in the form of asset securitization. Asset securitization was carried out with PT Permodalan Nasional Madani in this case.
“It has been calculated. He added that this alone is Rp 600 billion in office asset securitization, called the Asset-Backed Securities Collective Investment Contract (KIK-EBA),” he added.
Irvandi emphasized that in carrying out this KIK-EBA, his party had also received approval from the OJK. Overall, the asset securitization target for buildings owned by AJB Bumiputera is Rp 2 trillion.
“If the official houses are not being used, we will sell them,” he said.
In total, assets owned by AJB Bumiputera reached IDR 12 trillion, where property assets dominate the total assets of around IDR 7 trillion.
For information, the calculations of pending claims that AJB Bumiputera must pay after the reduction in the value of benefits reach IDR 5.29 trillion.
Meanwhile, the remaining assets are deposits, bonds, and a few shares of around Rp 5 trillion. However, these assets have been used more for operations than AJB Bumiputera.
“There is no plan to sell these deposit assets. We prefer to optimize assets first, don’t let these assets decrease; if possible, add them,” he said.
OJK Issues New Rules, Here’s What Customers Must Understand Before Buying Unit Link Insurance
KOMPAS.com – Circular Letter (SE) of the Financial Services Authority (OJK) Number 5/SEOJK.05/2022 concerning Investment-Linked Insurance Products (SEOJK PAYDI) was officially enforced starting March 2022.
Chief Executive of OJK’s Nonbank Financial Industry Supervision (IKNB), Ogi Prastomiyono, said the issuance of SEOJK PAYDI was one of OJK’s efforts to encourage the strengthening of the IKNB sector.
“Strengthening supervision and resolution of troubled companies at IKNB is expected to increase consumer protection and further strengthen a healthier non-bank financial services industry,” explained Ogi, as reported on the OJK website Tuesday (13/9/2022).
To note, SEOJK PAYDI encourages improvements in three main aspects: information transparency, marketing practices, and asset management.
Of these three things, transparency of information and marketing practices is the turning point for transforming PAYDI or unit link.
OJK realizes that the insurance literacy level of the Indonesian people still needs to improve. On the other hand, PAYDI is a complex insurance product because it combines insurance and investment elements.
Therefore, improvements to these two points are hoped to ensure that customers, especially PAYDI policyholders, genuinely understand the product being purchased, including insurance benefits, costs, and risks the policyholder bears.
Meanwhile, the Head of Products and Risk Management for Good Corporate Governance (GCG) of the Indonesian Life Insurance Association (AAJI), Fauzi Arfan, welcomed the regulation issuance. He also emphasized that the insurance company affiliated with AAJI has prepared PAYDI, which accommodates this policy.
“The implementation of SEOJK PAYDI in the insurance industry makes the interests of policyholders the company’s top priority,” Fauzi said in a written statement received by Kompas.com Wednesday (1/2/2023).
In addition to passing this provision, Fauzi considers that the consumers must also carry out consumer protection.
“Before buying an insurance product, prospective customers are expected to pay close attention to several things,” said Fauzi. See the photo of AAJI Actuarial and Risk Management Head Fauzi Arfan in an online press conference entitled Performance of the Life Insurance Industry in 2021, Wednesday (9/3/2022).
According to him, people must ensure that the products purchased meet their needs. Make sure the benefits offered are by the long-term plan. The premium set must also be by financial capabilities. Then, also ensure prospective customers can accommodate the product risks offered.
Fauzi also appealed to the public to carefully fill out the insurance request form. This is because this will be a reference for accepting insurance applications and processing claims at a later date.
Understand the various provisions in the policy.
After the insurance application is approved, the customer should know the provisions that apply in the policy carefully. One of them is the provision of a waiting period or waiting period.
For information, the waiting period is the period the policyholder or the insured must go through before submitting an insurance claim.
Waiting period provisions are enforced to avoid bad intentions by unscrupulous individuals through purchasing insurance products.
The waiting period provisions can also speed up the underwriting process, which is an assessment of risks that are acceptable to insurance companies and determines the amount of the premium.
In addition, the existence of a waiting period also allows prospective customers not to need to have a medical check-up. Fauzi continued, the community must also understand their rights and obligations after becoming a policyholder.
“The public has the right to ask marketers about this. Marketers must also provide information as clear as possible to the public from the start of product sales, including during the free look period,” explained Fauzi.
For your information, the free look period is the period given by the insurance company for policyholders to study the contents of the policy.
At that time, policyholders could study the data, terms, and conditions contained in the policy. Based on this evaluation, the prospective customer can continue the policy application.
Fauzi emphasized that premium leave is one of the PAYDI facilities that customers must also understand. Premium leave facilities were already available before the control of SEOJK PAYDI.
“(However), the mechanism for implementing premium leave has changed since the regulation issuance,” said Fauzi. He explained that the premium leave facility allows policyholders not to pay or stop paying premiums within a certain period without losing insurance benefits.
Based on SEOJK PAYDI, continued Fauzi, the policyholder must submit premium leave at least 30 days before it takes effect. However, Fauzi emphasized that the premium leave does not mean customers do not pay premiums.
“Insurance premiums are taken from the cash value that has been formed from the investment in PAYDI products that are owned,” said Fauzi. Therefore, Fauzi suggested, premium leave is submitted when the investment value is sufficient or can cover premium payments during the leave period.
Then premium leave should also be taken when the policyholder is in an emergency and cannot afford to pay the premium. This is because premium leave can reduce cash benefits or sum insured later.
To get maximum service, Fauzi advises customers to understand how to submit a claim and record the number of the insurance company’s contact center that can be contacted whenever needed.
“One of the things that are no less important is that the community must ensure that the marketing staff who sell PAYDI products have an AAJI license,” said Fauzi.
Fauzi said the public or potential customers could ask marketers to show an AAJI license. The community is also obliged to ensure that the products offered by the company are the same as those stated in the salesperson’s license.
“The public can check the validity of the salesperson’s license number on the AAJI website,” said Fauzi.
Fauzi hopes that the issuance of SEOJK PAYDI can answer people’s doubts about the product and provide a sense of security to PAYDI customers.
Insurtech Fuse Records IDR 3 Trillion Gross Premiums Throughout 2022
Bisnis.com, JAKARTA — Insurance technology company (insurtech) Fuse recorded a gross premium income of over US$200 million or more than Rp3 trillion. This figure is up 100 percent compared to the same period in the previous year.
In 2021, Fuse pocketed a gross premium of more than US $ 105 million or around IDR 1.5 trillion. Throughout 2022, the company has also issued more than 150 million policies.
Fuse Founder & Chief Executive Officer (CEO) Andy Yeung said the company’s secure and scalable, ISO-certified mobile technology platform could process high volumes of transactions and data. He claims the company has become a pioneer in the digital insurance ecosystem.
Andy added that Fuse operates several parallel business models, such as B2A2C, B2C, and B2B2C.
“This has made us overgrow over the past few years so that we can issue more than 150 million policies and record a GWP [gross written premium] of more than IDR 3 trillion in 2022,” said Andy in an official statement Wednesday (22/3/2023 ).
Andy said he was grateful to work with many insurance companies, especially Titanium partners. The digital business partners, investors, agent/broker partners, and Fuse employees are dedicated and always do their best.
Fuse’s vision is to make insurance affordable for everyone in the Southeast Asian region. The company has expanded into Vietnam, Thailand, and Malaysia. This expansion strategy will continue in 2023.
“We see that many people in the Southeast Asian region are still unprotected, and we hope that more people can get insurance protection,” said Andy.
Andy added that his party would be committed to using technology to help stakeholders such as insurance companies, digital business partners, and agent/broker partners. The company is also actively exploring the latest technologies for automating policy submissions and insurance claims, starting from Artificial Intelligence (AI), blockchain, and extensive data analysis.
Beware of Insurance Fraud in the Name of BNI Life
KOMPAS.com – The public is advised to be wary of telephone insurance fraud on behalf of BNI Life.
Through the Instagram account @bnilifeid, BNI Life informs about fake numbers on its behalf.
His party will provide official numbers and emails that can be contacted by the public, namely at number 1-500-045 and email care@bni-life.co.id.
“BE CAREFUL of all kinds of fraud in the name of PT BNI Life Insurance, yes, Life Friends!” quoted from account @bnilifeid, Thursday (16/3/2023).
Apart from that, you can check the official social media account and ensure the number calling is the same as the number listed on social media and the official website.
You should be suspicious if the number calling differs from the number listed on the website or social media.
Do not provide personal data or fulfill requests from these suspicious numbers and provide money or other financially risky requests.
Check the owner of the number.
Another way to do this is to check the number owner through the GetContact application. The application allows us to know the names stored by other users.
GetContact will collect a history of the user’s existing contact names, even if you haven’t saved them in your contacts list. If the number is stored under another name, labeled “spam” or “swindler” by other users, then do not fulfill the request from the caller. If that suspicious number disturbs your peace, then block it more.
Partnering with BCA, AIA Launches the Maxi Value Protection Product
KONTAN.CO.ID – JAKARTA. PT AIA FINANCIAL and PT Bank Central Asia Tbk (BCA) launched a unit link product, Maxi Value Protection.
The launch of this product is predicted to be by the provisions set by the Financial Services Authority (OJK) through OJK Circular Letter (SEOJK) No.5/SEOJK.05/2022 dated 14 March 2022 concerning Insurance Products Linked to Investment (Paydi) as well as for meeting the diverse protection needs of customers.
AIA’s Chief Marketing Officer, Kathryn Parapak, said that his party welcomed this regulation to protect various parties, companies, marketers, and customers.
“Together with BCA, we synergize and commit to always comply with regulatory requirements regarding unit link products and provide protection solutions that suit the needs of various customers. The presence of Maxi Value Protection is a concrete manifestation of our commitment,” said Kathryn in a press release. , Monday (20/3).
Kathryn said that Maxi Value Protection provides a protection period of up to 99 years of age with a sum assured depending on the customer’s protection needs, starting from IDR 100 million or a minimum of 5 times the annual basic premium.
“More than protection, AIA also motivates customers to live healthier lives through AIA Vitality, a health & wellness program integrated with Maxi Value Protection,” he explained.
Maxi Value Protection offers reliable protection solutions through three additional insurance options (riders) to support customer needs.
First, Premier Hospital & Surgical Extra provides health protection with worldwide coverage areas, private inpatient rooms (1 bed with ensuite bathroom), annual limits, high booster limits, and access to global health care.
Second, Vital Care protects against 169 critical illness conditions according to the chosen plan, with a coverage benefit of up to 300%.
Third, the Waiver Care Series provides premium exemption benefits to keep protection active in the event of a risk of critical illness, total permanent disability, or death to the Policy Holder.
“The presence of this newest product is expected to complete the need for protection solutions in mitigating unexpected financial risks, especially regarding health. Our insurance partners and we will continue to develop more complete protection solutions,” said BCA EVP Wealth Management, Ugahary Yovvy Chandra.
Source : https://keuangan.kontan.co.id/news/gandeng-bca-aia-luncurkan-produk-maxi-value-protection
This information is presented by L&G Insurance Broker – The Smart Insurance Broker.
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