7 Selected Insurance News in Indonesia for March 2023

Liga Asuransi – Wonderful readers, how are you and your business doing? Hopefully in good condition and moving forward. As usual, we will return at the beginning of March to 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 that they also understand like you.

OJK Commitment to Strengthen Insurance Industry by Implementing PSAK 74

Bisnis.com, JAKARTA — The Financial Services Authority (OJK) is committed to strengthening the insurance industry by ensuring the readiness of industry players to implement the Application of Statement of Financial Accounting Standards (PSAK) 74 concerning Insurance Contracts on January 1, 2025.

OJK Chief Executive for Insurance, Underwriting, and Pension Fund Supervision Ogi Prastomiyono said that the insurance industry sector is vital in driving national economic growth.

“We hope that the implementation of PSAK 74 adopted from IFRS 17 can overcome the issue of asymmetric information, which makes it difficult for relevant stakeholders, both consumers, investors, and also regulators, to get a correct and complete picture of the financial condition and operational performance of insurance companies,” said Ogi in a written statement, Thursday (9/3/2023).

Ogi said that in the last few years, several insurance industry players have experienced various problems that have the potential to erode public confidence in the quality and capacity of the national insurance industry players.

Therefore, Ogi stated that the application of PSAK 74 was in line with the mandate of Law Number 4 of 2023 concerning the Development and Strengthening of the Financial Sector (UU PPSK), which stated that Financial Sector Business Actors (PUSK) are required to submit and compile financial reports following financial reporting standards. Stipulated by the Financial Report Standards Committee, where Presidential Decree specifies the Financial Reports Standards Committee.

Form a Steering Committee

Furthermore, on October 31, 2020, Ogi said that OJK had formed a Steering Committee to implement PSAK 74.

A member of the OJK Board of Commissioners chairs the Steering Committee. It consists of representatives from the Ministry of SOEs, the Ministry of Finance, the Indonesian Association of Accountants, the Financial Accounting Standards Board, the Sharia Accounting Standards Board, the Indonesian Institute of Public Accountants, the Indonesian Association of Actuaries, the Association of Indonesian Actuarial Consultants, the Life Insurance Association. Indonesia (AAJI), Indonesian General Insurance Association (AAUI), and Deputy Commissioner for Supervision of IKNB OJK, who also serves as Chair of PSAK 74 Implementation Working Group.

“The existence of the Steering Committee is expected to be able to provide solutions and/or policies needed to overcome various obstacles faced at the operational, technical level,” he said.

In addition, OJK has also communicated with the World Bank, IMF, and international insurance companies to be able to participate and support and assist the implementation of PSAK 74 in Indonesia, one of which is through the provision of technical assistance.

Additionally, several joint venture companies that have previously implemented IFRS 17 are also expected to be ready to assist and support the implementation of PSAK 74, among others through organizing knowledge sharing.

Source: https://finansial.bisnis.com/read/20230309/215/1635836/ojk-komitmen-perkuat-industri-asuransi-dengan-penerapan-psak-74. 

Buying Insurance Products in E-commerce is Starting to Be Interested

KONTAN.CO.ID – JAKARTA. In recent years, insurance products have become easier to find, one of which is through e-commerce. The distribution channel is now starting to attract a lot of interest.

This is reflected in data from the Indonesian Life Insurance Association (AAJI) which noted that premiums earned from e-commerce rose 492.9% annually to IDR 476.61 billion.

Even so, the Chairman of AAJI Budi Tampubolon realized that the figure was still too small compared to the contributions of other distribution channels. Remember, not all insurance companies offer their products through e-commerce.

Budi sees the small contribution from e-commerce because the products offered are traditional and simple. Where, the risk is not too high and the premium is cheap.

“I guess the number of customers is not small, but because the premiums or products offered are purely short-term risks, the premium per policy is smaller,” he said.

Budi is optimistic that even though the figure is still small, it can become a promising distribution channel for the future. Remember, there are already many people who are literate in technology.

“In the next few years, this little one won’t be small anymore, even after many years after not being small anymore, this could be number two,” said Budi.

He also reminded insurance companies offering products through digital channels such as e-commerce to consider service convenience.

“So there is no need to bother sending documents anymore,” he said.

Source : https://keuangan.kontan.co.id/news/pembelian-produk-asuransi-di-e-commerce-mulai-diminati 

AAJI Records 7.5% Drop in Life Insurance Industry Revenue Throughout 2022

KONTAN.CO.ID – JAKARTA. The Indonesian Life Insurance Association (AAJI) records life insurance industry revenue of IDR 223 trillion in 2022. That’s a decrease of 7.5% annually (YoY).

Chairman of the Board of Directors of AAJI Budi Tampubolon revealed that the decline in the life insurance industry’s income was largely due to product shifts and premium payment methods by the public.

“In general, the life insurance industry’s premium income has decreased, including new business premium income,” said Budi in a press conference on Tuesday (7/3).

Even so, Budi said the insured life insurance industry is still increasing. As of December 31, 2022, the total life insurance industry insured numbered 85.01 million people, this figure increased by 30.4% when compared to 2021.

According to him, the growth in total insureds but still holding back premium income indicates that the target market for the life insurance industry has become wider and it can be said that insurance products marketed by the life insurance industry are already targeting the lower middle class.

“Those who want insurance protection but with a relatively small premium value,” said Budi.

Meanwhile, Head of Products, Risk Management, GCG AAJI Fauzi Arfan said that the total claims and benefits paid by the life insurance industry from January to December 2022 were recorded at Rp. 174.28 trillion.

Fauzi said that based on the type of claim paid, individual health claims were one of the components with a very high increase, which increased 46.1% annually. “The life insurance industry is a liquid industry,” he said.

Source : https://keuangan.kontan.co.id/news/aaji-catat-pendapatan-industri-asuransi-jiwa-sepanjang-2022-turun-75 

AAJI Waits for Types of Products and Premiums in the Policy Guarantee Program

JAKARTA, KOMPAS.com – The Deposit Insurance Corporation (LPS) will run an insurance policy guarantee program based on Law (UU) Number 4 of 2023 concerning the Development and Strengthening of the Financial Sector (PPSK).

Chairman of the Board of Management of the Indonesian Life Insurance Association (AAJI) Budi Tampubolon said that his party welcomed this policy guarantee program.

“It has been appointed, a special Policy Guarantee Agency has not been formed, but an existing LPS has been appointed, which has been running well.

This will not only become a guarantor for the banking sector but also for the insurance industry,” he said after a press conference on life insurance performance, Tuesday (7/3/2023).

He added, previously there had been discussions regarding what types of products could be covered by the policy guarantee program. In addition, there is also discussion regarding the amount of the policy that can be covered with provisions such as premiums for each insurance company.

“Then, when it starts, all the insurance companies will immediately follow-up or those who (insure) the life first, or (insurance) in general first, or some parts,” he explained.

 Regarding several insurance companies that have been hampered by recent cases, AAJI admits that he is concerned.

Budi always reminds association members to prioritize prudence and practice good governance and risk management.

“We also always remind, in marketing insurance products must be explained. Marketers must also pay attention from time to time, always re-trained so that they are up to date with regulations,” he said.

Budi reminded customers that insurance products have a free look period. This facility can be used by customers to review whether the protection offered is in accordance with customer needs.

“So please read the policy, and if it is different from what was explained at that time, the customer has the right to cancel the coverage. We don’t expect it to happen,” he said.

Source:  https://money.kompas.com/read/2023/03/08/130000226/aaji-menanti-jenis-produk-dan-premi-dalam-program-penjaminan-polis. 

This insurance can cover the risk of online transportation accidents when it rains

JAKARTA, KOMPAS.com – PT Central Asia Financial (Asuransi Jagadiri), a digital-based insurance service, launched the Take Care of the Rain product, a solution to overcome the problems experienced by users of online transportation, both motorbikes and cars, when it rains.

Keep Rain is an insurance product innovation in Indonesia that adapts a similar product from Singapore with the benefit of accident protection that occurs when it rains for policyholders of up to IDR 10 million, it also provides protection for rising online transportation rates by up to 60 percent or a maximum of IDR 150,000 per day of the total cost journey.

Main Director of Jagadiri Reginald Hamdani said, the insurance is a combination of technology, insurance and digital wallets with digital use, fast and easy.

Reginald said that rain has a significant impact on road users, such as limited visibility for drivers, and potential accidents due to road conditions that may not be good. Rain is also a time when the price of online transportation fares can double or more.

“We understand that online transportation users are increasing and becoming part of the lifestyle. But in rainy conditions, several potential risks arise for its users.

So it is important to develop protection products that are in accordance with people’s current habits, in order to support their productivity,” said Reginald in a press release, Wednesday (8/3/2023).

Reginald explained, Jaga Rain was also developed to adapt to people’s current habits of using digital applications in their daily lives, including for financial activities.

“We want all Jaga Rain users to be able to easily perform all procedures online. Therefore, anyone who needs it can directly access www.jagahujan.co.id to register, make payments, and claim online. Claims will be paid through the OTTO application into electronic money,” added Reginald.

Jagadiri Marketing Director Yuda Wirawan said, customers can choose a usage period of up to 30 days in the future and the type of online vehicle used. “If an accident occurs, Jaga Rain provides death benefits of up to Rp. 10 million, as well as reimbursement from increases in online transportation prices, both cars and motorbikes, a maximum of 60 percent of the total travel costs,” explained Yuda.

Source: https://money.kompas.com/read/2023/03/08/150000426/asuransi-ini-bisa-cover-risiko-kecelakaan-transportasi-online-saat-hujan. 

Revealed! Reasons for OJK Sanctions Public Accountant KAP Wanaartha Life 

Bisnis.com, JAKARTA — The Financial Services Authority (OJK) conveyed the reasons behind imposing sanctions in the form of a decision letter canceling registration certificates to two Public Accountants (AP) and one Public Accountant Office (KAP) which provide audit services for the annual financial statements of PT Asuransi Adisarana Wanaartha Soul or Wanaartha Life.

the indictment, namely for a Public Accountant on behalf of Nunu Nurdiyaman, and a Public Accountant on behalf of Jenly Hendrawan. Meanwhile, the OJK also imposed sanctions on the Public Accounting Firm (KAP) Kosasih, Nurdiyaman, Mulyadi Tjahjo & Partners or Crowe Indonesia, which are members of Crowe Horwath International.

Head of the OJK Literacy, Financial Inclusion and Communication Department Aman Santosa said that the sanctions were given respectively through the Decree of the Board of Commissioners number KEP-5/NB.1/2023, KEP-3/NB.1/2023, and KEP-4/ NB.1/2023 dated 24 February 2023.

“The sanction was imposed after an examination was carried out on AP and KAP who provided audit services for Wanaartha Life’s annual financial statements from 2014 – 2019,” said Aman in a written statement, quoted Friday (10/3/2023).

Aman explained that the penalty for canceling the registration certificate at the OJK was imposed on the AP on behalf of Nunu Nurdiyaman and KAP Kosasih, Nurdiyaman, Mulyadi Tjahjo & Rekan because they were deemed to have committed a serious violation. This is as referred to in Article 39 letter b POJK number 13/POJK.03/2017 concerning the Use of Public Accountant Services and Public Accounting Firms in Financial Service Activities.

Meanwhile, said Aman, Jenly Hendrawan was deemed not to have the competence and knowledge needed as a requirement to become a Public Accountant providing services in the financial services sector, namely as referred to in Article 3 POJK 13 of 2017 because he was also the party that caused the violations committed by AP Nunu Nurdiyaman.

“Based on the examination, the said AP and KAP could not find any indication of manipulation of financial statements, especially not reporting an increase in production of insurance products similar to high-risk savings plans carried out by [Wanaartha Life’s] shareholders, directors and board of commissioners,” he explained.

The OJK considers that this makes it appear as if the financial condition and soundness level of Wanaartha Life still meet the prevailing level of soundness, so that policyholders continue to buy Wanaartha Life products that promise quite high returns regardless of the level of risk.

Furthermore, referring to the OJK decision letter, AP Nunu Nurdiyaman is not allowed to provide services in the financial services sector from 28 February 2023. Then, Jenly Hendrawan is not allowed to provide services in the financial services sector since 24 February 2023.

In addition, continued OJK, KAP Kosasih, Nurdiyaman, Mulyadi Tjahjo & Partners are not allowed to accept new assignments since the decision letter is issued and are required to complete the audit assignment contract for the 2022 annual financial statements which have been received before the decision is made, no later than May 31, 2023.

Source : https://finansial.bisnis.com/read/20230310/215/1635916/terungkap-alasan-ojk-sanksi-akuntan-publik-kap-wanaartha-life. 

This information is presented by L&G Insurance Broker – The Smart Insurance Broker.Featured

—

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

—