Liga Asuransi – Hello risk takers, in the 5th week of January 2024, we will once again discuss the world of insurance, because insurance is not only limited to vehicles and life, especially for business protection coverage, insurance still has a very wide reach. In the fifth week of January 2024, we are again collecting 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.
Jasindo Agricultural Protection: Crop Failure Insurance for 300 Thousand Hectares, Success in Protecting Farmers
PT Asuransi Jasa Indonesia (Jasindo) received an important task from the government to develop agricultural insurance, a step that has not been taken by many insurance industry players. In this context, Jasindo has Rice Farming Business Insurance (AUTP) which aims to provide protection to farmers from various risks of crop failure, including the risk of floods, drought, disease and attacks by plant pests.
Brellian Gema, Secretary of the Jasindo Insurance Company, explained that the assignment for agricultural insurance was a form of subsidy that came from the Ministry of Finance’s budget and involved coordination with the Ministry of Agriculture. Jasindo not only provides protection, but also actively provides literacy and education to farmers.
To date, Jasindo has covered more than 300 thousand hectares of rice farming land throughout Indonesia, especially in areas where Jasindo Insurance branch offices exist. This program provides opportunities for farmers with a premium of IDR 180,000, of which 80% is assistance from the government. Thus, each farmer only needs to pay IDR 36 thousand, with a maximum coverage price limit of IDR 6 million per hectare.
There are several criteria that must be met to be able to participate in this insurance program, including being a sharecropper or owner of land with a maximum of 2 hectares. The land must also be irrigated land or rain-fed land close to a water source.
As proof of its commitment, in September 2023, Jasindo has paid harvest failure claims amounting to IDR 1.1 billion to 43 Farmer Groups in West Sumbawa Regency. The crop failure was caused by floods that hit the agricultural land of farmers in the area.
Big Challenges Await Indonesian Life Insurance in 2024: Capital Regulations and Sharia Unit Spin-Offs
The Indonesian Life Insurance Association (AAJI) faces a number of serious challenges in 2024, with a primary focus on regulations and rules that could affect the health of the insurance sector. Chairman of the AAJI Management Board, Budi Tampubolon, revealed that one of the main challenges is capital issues, especially after the issuance of Financial Services Authority Regulation (POJK) Number 23 of 2023. This regulation, which will come into effect in 2026, regulates business licensing and company institutions insurance, sharia insurance companies, reinsurance companies, and sharia reinsurance companies.
Budi explained that POJK 23/2023 stipulates capital requirements that must be paid up by newly established insurance and reinsurance companies. This forces life and general insurance companies to increase capital in accordance with regulatory requirements, which in turn will increase the company’s equity.
The second challenge faced by the insurance sector is related to spin-offs for insurance companies that have sharia business units. According to regulations, service providers are required to increase the capital of sharia subsidiaries that will be spun off no later than 2026.
“The third challenge comes in the form of implementing IFRS-17/PSAK-74 which has an impact on company equity, with the possibility of recognizing smaller profits,” added Budi.
Budi explained that the difference in profit results occurred due to changes in the calculation system. Previously, company equity was calculated using the ABC method, but with the implementation of PSAK-74, the calculation was carried out using the XYZ method.
“If the impact only makes profits slightly smaller but remains positive, that is already quite troublesome. However, if profits become negative, it can erode the equity that has been built previously. Therefore, in the next few years, additional capital will become an urgent need ,” said Budi.
Finally, the insurance sector in Indonesia is faced with complex challenges that require adaptation and careful strategies to maintain the company’s financial health in the face of significant regulatory changes.
Source: https://www.medcom.id/ekonomi/bisnis/zNPXj0zN-aaji-ungkap-tantangan-sektor-asuransi-di-2024
Mass Protest of Wanaartha Life Victims Regarding Liquidation: Demand Fair Distribution of Proceeds
Hundreds of victims of PT Asuransi Jiwa Adisarana Wanaartha (Wanaartha Life) packed the OJK office in Jakarta on Tuesday, (24/1/2024), to protest against the liquidation payment voting process which was deemed not in favor of the victims. The Liquidation Team has provided information regarding Procedures for Settlement and Distribution of Liquidated Assets, which stipulate that policyholders must vote regarding payment of bills amounting to 4.46% of the total loss. The voting deadline is set for January 29, 2024.
The Wanaartha Victims Alliance stated that choosing not to agree means having to be prepared to accept the consequences of being removed from the list of payment bills for distribution of wealth resulting from the liquidation of Wanaartha Insurance. Christian, the victim’s representative, expressed the dilemma faced by the victims, where agreement means giving up the right to file a lawsuit or legal action against the Liquidation Team.
At an audience with the OJK, policyholder customers asked that this voting procedure be abolished, citing incompatibility with POJK 28-2015. OJK’s Director of Special Supervision of Insurance and Pension Funds, I Wayan Wijana, stated that all policyholders registered in the liquidation process have the same right to obtain a proportional distribution of liquidation proceeds without the need for voting.
The hearing also revealed that the liquidation payment procedure by voting initiated by the Liquidation Team was not based on OJK approval. OJK asked the Liquidation Team to change and re-inform the Procedures for Settlement and Distribution of Liquidation Proceeds to all policy holders with mutual agreement of the policy holders and the Liquidation Team. After that, the document will be submitted to the OJK for further examination.
Until this news was written, the liquidation team had not yet responded to this situation. The victims continue to criticize the liquidation process which they consider unfair and hope that the OJK can provide a solution that is in their favor.
Tugu Insurance Considers Becoming the Parent Business Group of Insurance Companies
PT Asuransi Tugu Pratama Indonesia Tbk. (TUGU), a subsidiary of Pertamina, revealed the potential to become the holding company of the Insurance Company Business Group (KUPA) which is affiliated with the Tugu Group. This opportunity arises because the company has achieved equity of IDR 6.7 trillion on December 31 2023, exceeding the minimum provisions in the Insurance Business Implementation Requirements (KPPE) 2. Deputy Director of Strategic Management & Corporate Development of Tugu Insurance, Kristy Damayanti, expressed consideration for becoming a parent KUPA in a Webinar on Wednesday (24/1/2024) which discussed POJK Number 23 of 2023 and its impact on the insurance industry in Indonesia.
Kristy explained that Tugu Insurance would explore the possibility of forming a KUPA with insurance and reinsurance companies affiliated with the Tugu Group. Some of the entities targeted in this holding include PT Asuransi Samsung Tugu and PT Tugu Reinsurance Indonesia (Tugure).
“In the Tugu Group, several of our affiliated companies still have equity below the minimum requirement in 2028, with KPPE 1 category or can carry out business activities as currently in KPPE 2,” he said. For example, currently Samsung Tugu’s equity reaches IDR 398 billion, while Tugu Re has equity of IDR 1.5 trillion.
Regarding the formation of KUPA with non-group insurance companies, Kristy said that Tugu Insurance is still considering the opportunities and schemes set by the regulator. Factors such as positive contributions, shared vision and mission, and evaluation of opportunities and risks that may arise from the KUPA scheme are the main considerations.
“In general, we are fully committed to the regulations imposed by the OJK and try to make the best contribution to the Indonesian insurance industry,” said Kristy.
Dissolution of PT Asuransi Jiwa Prolife Indonesia: Liquidation Team Announces Official Decision
The Liquidation Team announced the process of dissolving PT Asuransi Jiwa Prolife Indonesia, previously known as PT Asuransi Jiwa Indosurya Sukses (In Liquidation). This announcement is based on the decision taken outside the General Meeting of Shareholders as a substitute for the Extraordinary General Meeting of Shareholders of PT Asuransi Jiwa Prolife Indonesia, as recorded in the Deed of Statement of Decision Outside the Meeting of Shareholders Number 3 dated January 3 2024. Dwi Yulianti, a Notary in South Jakarta, made the notification.
“This notification was issued as a result of a copy of the Decree of the Board of Commissioners of the Financial Services Authority Number KEP-77/D.05/2023 dated November 2 2023, which revoked the business license in the Life Insurance sector for PT Asuransi Jiwa Prolife Indonesia,” said the Liquidation Team in official statement quoted on Wednesday (24/1).
The Company’s dissolution process was declared effective on 2 November 2023, and the Liquidation Team has been appointed and approved by the Financial Services Authority via letter Number S-249/PD.12/2023 dated 11 December 2023. The composition of the Liquidation Team involves Parhulutan Manalu, Tri Wahjuni Harto Saputro, and Chandra Hutabarat.
The Liquidation Team said that parties who have bills can contact them and submit bills accompanied by supporting evidence within 60 calendar days from the date of announcement. The address of the Secretariat Office of PT Asuransi Jiwa Prolife Indonesia is at the Kuningan Tower Building, Fl. 9, Unit E, South Jakarta. Submission of bills can also be done via e-mail timlikuidasiprolife@gmail.com.
This official decision to disband the Company highlights the end of the journey of PT Asuransi Jiwa Prolife Indonesia and guides the next steps for the parties involved in the liquidation process.
Successful Strategies for Facing Generation Z Employees in the Insurance World
Generation Z or Gen Z, who now dominates the world of work in Indonesia, is considered valuable capital for the country’s progress in the next 10 years. According to data from the Central Statistics Agency (BPS) as of August 2022, the Gen Z workforce reached 27.94 percent of the total workforce, with unique characteristics that differentiate them from previous generations.
Even though Gen Z tends to be the majority in the workforce, their uniqueness creates its own challenges. This generation of employees does not only focus on salary or income as the main priority in choosing a job, but pays more attention to mental health aspects and the desire to implement a relaxed style work system.
In dealing with Gen Z employees, the President Director of PT Asrinda Arthasangga (Asrinda Re-Broker), Eko Supriyanto Hadi, has a special strategy. One of these strategies is to support the trend of wearing casual clothing in the work environment. Even though previously formal dress codes may have applied, Eko actually encourages employees to wear casual outfits, in fact he himself follows this trend with a relaxed style when working.
“I’m casual, wear sneakers, wear jeans,” said Eko, showing his approach that supports the wishes of Gen Z.
Even though he has not fully implemented the hybrid work system, Eko allows several divisions at Asrinda Re-Broker to come to the office once a month, giving employees flexibility in carrying out their duties.
Apart from that, office design is also the focus of change by adopting an open space concept which is considered more modern and favored by the younger generation, especially Gen Z. Eko sees the presence of Gen Z as a key element in the insurance industry, considering that the regeneration and certification process takes a long time.
“Insurance employees need five to 10 years to become experts in their field. Therefore, collaborating with the younger generation is an important part in ensuring the continuity and success of the company,” said Eko.
With this strategy, Eko hopes that Asrinda Re-Broker can continue to compete and develop, forming a team that is capable, talented and able to face the dynamics of the insurance industry in the future.
Wanaartha Life Liquidation Team Announces Process of Disbursement of Assets Worth IDR 300 Billion
The liquidation team of PT Asuransi Jiwa Adisarana Wanaartha, or Wanaartha Life, provides the latest news regarding the disbursement of company assets worth IDR 300 billion. Chairman of the Wanaartha Life Liquidation Team, Harvardy Muhammad Iqbal, stated that currently his party is actively in the process of disbursing Wanaartha Life’s liquidation assets.
“After the voting is complete, we will calculate the proportional value of each policyholder who voted in favor, as well as the value of the distribution of the first stage. Next, we will report the results to the OJK,” said Harvardy in an interview with Bisnis on Tuesday (23/1/ 2024).
Previously, Harvardy revealed that the liquidation team was continuing to try to take the necessary actions so that the disbursement of some of Wanaartha Life’s problematic assets could be carried out immediately. This aims to distribute the proceeds to creditors, especially customers or policy holders.
“In this context, we are currently in intensive discussions with the OJK, KSEI, Custodian Bank, and several Investment Managers to prepare a plan for the disbursement of Wanaartha’s assets, especially in the form of investment instruments, with the hope that this can be implemented in the near future,” he added.
The assets in question involve land and buildings, where the liquidation team has collaborated with several property agents to market and sell these assets at the best price. Harvardy also revealed that the disbursement and sale of Wanaartha Life’s investments and assets will refer to the Temporary Liquidation Balance (NSL), especially non-problematic assets. Harvardy’s estimates show that Wanaartha Life’s non-performing assets are estimated at IDR 233.92 billion, and with the addition of problematic assets that have the potential to be liquidated, the total disbursement is expected to reach around IDR 300 billion.
This article is brought to you by L&G Insurance Broker, insurance broker Indonesia..
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