Liga Asuransi – Hello risk takers, in the third week of April 2024 we will once again discuss developments and events in the world of insurance in Indonesia in the last week, because as we all know, the object of insurance is not only vehicles, life, health or property, but also The scope of objects that can be insured is very wide, especially in the business sector. Almost all business processes from A to Z can be protected by insurance. In this edition, as usual, we have again collected 7 selected news related to insurance that are good for you to know.
As always, if you are interested in this article, please share it with your colleagues so they can understand it as well as you.
Astra Insurance Premium Income Soars 30% Until February 2024
PT Asuransi Astra Buana (Asuransi Astra) recorded a brilliant achievement with premium income reaching IDR 1.92 trillion in February 2024. This figure shows an annual jump of 30% from the previous year which reached IDR 1.439 trillion.
Based on its financial report, the largest premium income came from direct closing premiums which increased 20% on an annual basis, reaching IDR 1.844 trillion in February 2024 compared to IDR 1.528 trillion in February 2023.
Not only that, total underwriting income also increased by 23% on an annual basis, rising from IDR 719.035 billion in February 2023 to IDR 884.929 billion in February 2024.
According to the Head of Communication and Customer Service Management of Astra Insurance, Laurentius Iwan Pranoto, this increase in premium income was caused by growth that occurred in various related sectors in the insurance industry. He explained that the growth of general insurance generally follows the development of other industries.
“The insurance industry is very dependent on other industries. For example, the growth of motor vehicle insurance will be closely related to the growth of the automotive industry, while commercial business will be influenced by the property, mining, energy and so on sectors,” said Iwan to KONTAN on Sunday (14/ 4).
Optimism radiates from this achievement, showing that Astra Insurance continues to strengthen its position in the insurance market with stable and significant growth.
Innovative Process for Insurance Companies to Intensively Look for Solutions with Sharia Unit Spin-offs
The Financial Services Authority (OJK) noted that as many as 32 insurance and reinsurance companies that have sharia units have expressed their intention to spin-off by establishing new sharia insurance companies.
OJK’s Chief Executive of Insurance, Guarantee and Pension Fund Supervision, Ogi Prastomiyono, revealed that the 32 companies had submitted a Sharia Unit Separation Work Plan (RKPUS) which is currently still in process and continues to be monitored by the OJK.
On the other hand, there are also other companies that will transfer their sharia portfolios to existing sharia insurance companies, and this process is also ongoing by looking for sharia insurance companies that are willing to accept the transfer, which is also continuously monitored by the OJK.
“Overall, the implementation of the latest Financial Services Authority Regulation which regulates increasing capital for insurance and reinsurance companies is the main focus,” said Ogi in a press conference resulting from the OJK Board of Commissioners (DK) Meeting in March 2024, which was held on Tuesday (2/4 ) Then.
OJK prioritizes ensuring that all insurance and reinsurance companies can meet the minimum equity requirements in phase I, which is targeted at December 2026.
This minimum equity requirement can be met through additional capital from shareholders, organic growth of the company, or through company consolidation.
Aswata Records 5% Premium Revenue Growth in the First Quarter of 2024, Focuses on Other Segments to Boost Performance
PT Asuransi Wahana Tata (Aswata) reported that premium income growth during the first quarter of 2024 only increased by 5% on an annual basis (Year on Year/YoY). President Director of Aswata, Christian Wanandi, revealed that the company’s premium income reached IDR 500 billion in that period.
Christian explained that although there was growth, this growth was slow. He highlighted the decline in growth which was dominated by the car insurance segment. This happened because of the decline in car sales which also affected car insurance premium income.
“With decreasing car sales, car insurance premium income has also decreased,” Christian said to KONTAN on April 13.
To boost premium income growth, Christian stated that the company would shift its focus to Coordination of Benefits (COB) in other segments. COB is a mechanism that allows a person to receive benefits from two or more insurance.
Furthermore, he explained that the property, liability and CAR segments would be the focus in efforts to increase premium income through COB.
Source: https://keuangan.kontan.co.id/news/pendapatan-premi-aswata-hanya-tumbuh-5-per-kuartal-i-2024
Critical Illness Insurance: The Importance of Financial Protection for Serious Health Conditions
You may have heard about critical illness insurance as an important protection product. However, what exactly is meant by critical illness insurance and how do you get it?
What is Critical Illness Insurance?
Critical illness insurance is a protection product designed to provide financial security if you are diagnosed with a serious illness such as cancer, heart attack, stroke and others. This protection is different from regular health insurance because it focuses on diseases that require intensive and expensive treatment.
Differences with Health Insurance
Critical illness insurance and health insurance have different protection coverage. Health insurance generally covers medical costs for various illnesses and injuries, while critical illness insurance focuses more on serious illnesses that require long-term treatment.
How does it work?
The way critical illness insurance works is relatively simple. After purchasing the policy, if you are diagnosed with an illness covered by the policy, the insurance company will pay out a cash amount. This money can be used to pay for medical expenses, daily necessities, or replace income lost due to illness.
Who Should Have Critical Illness Insurance?
Everyone, regardless of age or health status, can benefit from critical illness insurance. However, there are some groups of people who may benefit more, such as people with a family history of serious illness and those who don’t have enough emergency savings.
Criteria for Choosing the Best Critical Illness Insurance
There are several criteria to consider when choosing critical illness insurance, including the reliability and reputation of the insurance company, comprehensive protection coverage, flexibility in premium payments, and ease of the claims process.
Beware of Backflow! Ensure your protection with personal and vehicle accident insurance
Welcoming Eid al-Fitr 2024, the moment that Muslims have been waiting for to stay in touch with their beloved families, many people are preparing to return home to their hometowns. However, the Financial Services Authority (OJK) has warned the public to prepare themselves with personal and vehicle accident insurance before making the homecoming trip.
The reason behind this warning is to anticipate various incidents that may occur during homecoming, such as traffic accidents or damage to vehicles. Through a post on its official Instagram account @ojkindonesia on April 6 2024, OJK emphasized the importance of taking precautions for safety by having personal accident insurance and vehicle insurance.
Personal accident insurance provides protection against the risk of accidents that occur suddenly, are not planned, and can cause injury to someone. The benefit of personal accident insurance is to provide sufficient funds to pay for medical or maintenance costs when an accident occurs, including injury, permanent disability, or medication.
There are two main benefits of having personal accident insurance:
- Protects against losses due to vehicle damage.
- Guarantees the risk of losing the vehicle.
To choose the right personal and vehicle accident insurance, there are several tips you need to pay attention to:
- Make sure the insurance company has permission from the OJK.
- Research the service history of the insurance company you will choose.
- Choose insurance that offers complete protection features according to your needs, with affordable premium costs.
- Choose a company that has an easy and efficient claims process.
By paying attention to these things, people can ensure adequate protection during homecoming trips and reduce the risk of accidents or damage to vehicles.
ASDM Achieves Success: Profit Increases 13% in 2023, Gross Premium Income Reaches IDR 1.30 Trillion
PT Asuransi Dayin Mitra Tbk (ASDM) successfully recorded excellent performance throughout 2023. In its financial report released on (11/4), the company with the stock code ASDM announced that it achieved a profit of IDR 21.03 billion. This figure shows an increase of 13% compared to the previous year which only reached IDR 18.55 billion.
This significant profit growth was driven by gross premium income which reached IDR 1.30 trillion. ASDM’s total premium income increased by 10%, reaching IDR 207.73 billion compared to the 2022 period of IDR 188.23 billion.
However, the company also experienced an increase in expenses of 11%, up from IDR 163,110 billion in the previous year to IDR 181,382 billion in 2023.
In terms of liabilities, ASDM recorded an increase of 16% to IDR 611.21 billion, compared to 2022 which was IDR 523.84 billion. Meanwhile, the company’s equity only increased by 1%, reaching IDR 371.72 billion in the 2023 period from IDR 365.12 billion in the 2022 period.
With all these achievements, ASDM recorded total assets as of December 2023 of IDR 982.94 billion. This figure shows an increase of 10% from the previous year’s position which reached IDR 888.97 billion.
Source: https://keuangan.kontan.co.id/news/laba-asuransi-dayin-mitra-naik-13-pada-2023
OJK Highlights 7 Insurance Companies under Special Supervision: Focus on Financial Health and Liquidity
“OJK Highlights 7 Insurance Companies under Special Supervision: Focus on Financial Health and Liquidity”
The Financial Services Authority (OJK) has identified seven insurance companies that are under special supervision. OJK Chief Executive of Supervision of Insurance, Guarantees and Pension Funds, Ogi Prastomiyono, explained that the inclusion of these companies on the special supervision list was due to several key factors.
In general, these companies have solvency, liquidity and investment adequacy ratios of less than 80%. “The main challenge these companies face is a lack of capital to cover the deficit, which is necessary to ensure their financial health reaches the minimum required level,” said Ogi in a press conference in March 2024.
Apart from that, another problem faced is the lack of ability of shareholders to inject capital into the company or find strategic investors who can invest capital. Meanwhile, OJK is also monitoring the liquidation process experienced by several insurance companies, including Kresna Life, Wanaartha Life, Prolife, Bumi Asih Jaya Insurance, and Aspan Insurance.
OJK emphasizes the importance of correcting these financial and liquidity problems so that insurance companies can meet the minimum requirements set to maintain the stability of the insurance industry.
This article is brought to you by L&G Insurance Broker, insurance broker Indonesia..
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