Liga Asuransi – Hello awesome readers, how are you? We hope your business is running successfully and smoothly. As usual, we will present exciting and up-to-date news according to the available information.
In the following, we have summarized seven of the latest news you can enjoy. If you are interested in this article, don’t hesitate to share it with your colleagues so they will get the same understanding as you.
PLN Insurance Launches Public Liability Insurance for PLN Customers
KONTAN.CO.ID – JAKARTA. PT Asuransi Perisai Listrik Nasional (PLN Insurance) launched a PLN customer protection program through Public Liability Insurance on June 26, 2023.
The launch of the program is the result of a strategic collaboration between PLN Insurance and PT Bank KB Bukopin Tbk, Bank Mandiri Taspen, PT Bank OCBC NISP Tbk, and PT Bank Pembangunan Daerah Banten Tbk.
Through Public Liability Insurance, PLN Insurance protects the form of compensation for risks to PLN customers caused by electric short circuits, such as the risk of fire, the risk of injury due to electric shock, and the risk of death.
With a premium of IDR 500 for each electricity purchase transaction, every customer who makes an electricity bill payment mechanism through a bank partner that has collaborated with PLN Insurance automatically gets protection in the form of compensation for the death of IDR 15 million, property fire compensation of IDR 12.5 million, and reimbursement of medical expenses of a maximum of 10% of the death benefit
“Innovations from the PLN Pension Fund and PLN Insurance, as well as collaboration from strategic partners through Public Liability Insurance, are steps to improve service to PLN customers,” said Main Director of PLN, Darmawan Prasodjo, in his official statement, Wednesday (28/6).
President Director of PLN Insurance, Moch Hirmas Fuady, added his party is committed to providing the best service to PLN customers.
He said PLN Insurance had prepared a call center to facilitate the claim process for PLN customers who experienced property fires, were injured, and even died due to electrical short circuits with a straightforward claim process. The first step that needs to be done is to report claims through the Call Center.
Meanwhile, the Chairman of YLKI, Tulus Abadi, appreciated PLN for its innovation in improving customer service. “Himbara Bank and government banks must participate in the PLN customer program through Public Liability Insurance,” he said.
Special Subsidized Insurance for Livestock, Jasindo Calls High Demand
Bisnis.com, JAKARTA — PT Asuransi Jasa Indonesia or Jasindo has special insurance for livestock, namely Cattle/Buffalo Livestock Business Insurance or AUTSK, which receives subsidies from the government. The public widely uses this insurance to protect against various risks to livestock.
Jasindo Insurance Business Development Director Diwe Novara explained that livestock insurance is reflected in submitting claims to the company. This insurance has a very high claim ratio based on data on the implementation of the Government Subsidy Program AUTSK from 2016 to 2022.
“According to data as of June 29, 2023, the AUTSK claim for the government subsidy program that Asuransi Jasindo has completed during the implementation of the program from 2016 to 2022 amounted to IDR 180.26 billion,” Diwe told Bisnis Thursday (29/6/2023).
Diwe said that the value of this claim has the potential to increase, considering that there is still a liability for the 2022 policy, which will expire at the end of 2023.
Seeing the high loss ratio every year and as current risk mitigation, Jasindo is submitting an evaluation process for improving the AUTSK product to the Financial Services Authority (OJK). One of his concerns is the coverage of livestock insurance protection, which only protects female cows or buffaloes.
According to Diwe, bulls or bulls, including for sacrifice, have not been included in the government’s program. With the consideration that the number of female cows or buffaloes is limited, and to maintain the continuity of the livestock business, Diwe assesses the need for a review of the insurance.
Following are the complete criteria for livestock insurance in the AUTSK Premium Assistance Guidelines issued by the Ministry of Agriculture:
- Female Cow/Buffalo is at least one-year-old
- Cattle/Buffalo have clear identification such as ear tag/neck tag/microchip/ Livestock Card
- Farmers are members of livestock groups / combined livestock groups
- Breeders who carry out breeding and/or breeding businesses
Following are the causes of claims guaranteed in the AUTSK policy of the government program that are sudden and unforeseen, namely:
- Cattle/Buffalo die from the disease. Diseases covered by the policy are Anthrax, Brucellosis (Brucella abortus), hemorrhagic Septicemia / Septicemia Epizootica, Infectious Bovine Rhinotracheitis, Bovine tuberculosis, Paratuberculosis, Campylobacteriosis, Jembrana Disease, Surra, Cysticercosis, Q Fever, Bovine Ephemeral Fever, Bovine Viral Diarhea, Timpani /Bloats and Distochia.
- Cows / Buffaloes die because of giving birth
- Cows / Buffalo left because of an accident
- Loss of cows/buffaloes due to theft Based on the abovementioned matters, animals guaranteed in the AUTSK program are female cows/buffaloes that experience causes guaranteed by the policy.
Diwe explained that the AUSTK Government Subsidy Program is attractive to the public because the premium is cheap and the coverage is comprehensive. Based on data on implementing the Government Subsidy Program AUTSK for 5 years (2018-2022), 249,960 livestock breeders participated in AUTSK with 516,300 cattle/buffalo livestock.
“AUTSK has great potential in the future. Based on the data we obtained from BPS, the population of beef cattle in 2021 will be 18.05 million head, so AUTSK is very much needed to protect the sustainability of the livestock business,” explained Diwe.
On the other hand, Diwe explained that there are many requests for the commercial AUTSK/non-government subsidy program. However, the premium rate is higher, and the terms and conditions differ from the government subsidy program.
“So usually only insurance participants or companies that need protection for their livestock are involved,” said Diwe.
He explained that companies with large-scale cattle/buffalo livestock businesses usually already have their livestock management standards that are good enough, so they don’t need insurance protection or be given special insurance protection.
OJK Revokes Kresna Life’s Business License, Right Decision?
Bisnis.com, JAKARTA — The Financial Services Authority (OJK) officially revoked the business license of PT Asuransi Jiwa Kresna Life (Kresna Life) on Friday (23/6/2023), one of which was because of the solvency ratio or level of soundness (risk-based capital / RBC) ) that do not meet the minimum regulatory requirements.
The problems within Kresna Life forced the OJK to intervene by giving multiple opportunities to shareholders and Kresna Life’s management to carry out a financial restructuring program (RPK).
OJK’s Chief Executive for Insurance, Underwriting, and Pension Fund Supervision, Ogi Prastomiyono, said that Kresna Life’s management had submitted the RPK 10 times. However, Ogi stressed that out of the 10 submissions of the RPK, they still needed to be fulfilled.
As for the last RPK, continued Ogi, Kresna Life’s management delivered in the seconds before the end of 2022, with a conversion scheme from policyholder obligations to subordinated loans (subordinated loans/SOL).
In the last RPK, Ogi said that the shortfall from the conversion would be met with additional capital from controlling shareholders or strategic partners who would enter the company. Unfortunately, until the time extension, the conversion has not been carried out correctly and has yet achieved what was expected.
“In addition, the controlling shareholder [Kresna Life] has never put capital into the company or into the escrow account that we asked to fill the shortfall,” said Ogi in a virtual press conference Friday (23/6/2023).
Is the revocation of Kresna Life’s business license by OJK the right step?
Kapler Marpaung, an insurance observer and lecturer in the MM-Faculty of Economics and Business UGM, said that appropriate, incorrect, or inaccurate terms should have their standard. This category can be seen in bankruptcy cases, Suspension of Debt Payment Obligations (PKPU), and the liquidation of insurance companies that have occurred so far.
Kapler suggested that the government amend the laws and regulations regarding Bankruptcy and Suspension of Obligations for Payment of Debt so that institutions and agencies carrying out the liquidation process are required to make reports to the public openly.
“When asked whether it is appropriate for the OJK to revoke the business license from Kresna Life, the answer is how much of Kresna Life Insurance’s remaining assets are currently and to what extent these remaining assets will be distributed to its customers,” Kapler told Bisnis, quoted on Wednesday (28/2019). 6/2023).
Kapler added that OJK must also look at the extent of compliance of shareholders, including commissioners and directors who were ordered to pay debts.
“So again, the correct or incorrect size is the output. In conclusion, for now, all is not well. Both revoking licenses, bankruptcy, liquidation, and PKPU are all not good for customers or policyholders,” he said.
Indonesia Re Trying to Suppress Rising Insurance Claims, This Is the Strategy
KONTAN.CO.ID – JAKARTA. Re-insurance company Indonesia Re focuses on portfolio risk analysis for rising insurance claims.
According to financial data in the first quarter of 2023, Indonesia Re-recorded reinsurance claims of IDR 348 million as of March 2023. This figure is up 36% compared to the same period in 2022, which was IDR 255.7 million.
Indonesian Operations Technical Director Re Delil Khairat said that Covid-19 was one of the reasons for the increase in claims, so many companies also received strict supervision from the Financial Services Authority (OJK).
Indonesia Re also implemented a moratorium to anticipate an increase in insurance claims.
“We see an issue with credit insurance that we must fix the risk management. We are conducting a moratorium while waiting for further guidance from the OJK regarding where to take this credit insurance issue,” said Delil.
Delil also said that business could come on a treaty basis, namely business for an individual portfolio and on an optional basis. Indonesia Re sees that the Treaty has poor results every year, so Indonesia Re focuses on improving the quality of the Treaty portfolio.
In improving the quality of the portfolio, Delil said that the things that the company did were when renewing Treaty agreements with clients and seeding insurance companies, the company also carried out terms and conditions for those who raised prices and provided strict supervision.
“So we continue to carry out portfolio assessments and make improvements,” said Delil.
When the Reinsurance Industry Talks About the Impact of the 2024 Political Year
Bisnis.com, JAKARTA — Several reinsurance companies believe the 2024 political year will affect premium income, premium rates, and company claims. However, the 2024 political year is also seen as capable of reviving the country’s economy.
PT Reasuransi Maipark Indonesia, for example, considers that the 2024 presidential election (pilpres) will affect reinsurance performance.
Maipark Indonesia Reinsurance Technical Director Heddy Agus Pritasa said that the 2024 political year will affect the performance of the reinsurance industry because each company, organization, and customer will adjust and anticipate strategies or circumstances according to 2024 political developments.
“And, of course, it will affect the performance of insurance and reinsurance companies,” Hendy told Bisnis Tuesday (27/6/2023).
In addition, the political year also influences investment strategies and money circulation related to political developments.
“Maipark’s position will also be affected, but probably not as big as other insurance and reinsurance companies,” he said.
Meanwhile, PT Reasuransi Indonesia Utama (Persero) or Indonesia Re also considers that the 2024 elections will affect economic movements. The reason is the velocity of money will be, and activity will increase.
President Director of Indonesia Re Benny Waworuntu said mass mobilization in campaigns and money circulation would also increase ahead of the 2024 elections.
As for the insurance side, Benny said that business opportunities in the insurance industry would also become even more comprehensive.
However, added Benny, the insurance industry must also be more selective in developing its business because the insurance task is to carry out risk selection and risk management.
“Moreover, we are reinsured. We are the backbone because we are the backbone. We have to take care of it,” said Benny. Check other news and articles on Google News.
Buy Electric Tokens Can Get Fire Insurance. Here’s How
Jakarta – PLN electricity customers will receive insurance protection without being subject to additional administration fees. This happens if customers pay tokens or electricity bills through Bank KB Bukopin.
As quoted from a written statement, Tuesday (27/6/2023), PT Bank KB Bukopin Tbk has entered into a strategic partnership with PLN Insurance, which is a unit in the PT PLN (Persero) business group in the Public Liability Insurance program.
Through this program, PLN customers who purchase electricity tokens or pay electricity bills through Bank KB Bukopin will automatically receive insurance protection without being subject to additional administration fees.
KB Bukopin will act as a guarantor for PLN customers who make electricity payments through the KB Bukopin channel that has been provided. The scope of guarantees that can be facilitated includes insurance protection for property loss (fire due to electrical hazard) and bodily injury due to electrical hazard (death and medical expenses).
The Main Director of Bank KB Bukopin, Woo Yeul Lee, hopes this collaboration will protect customers.
“We also hope that the benefits of insurance protection provided to PLN customers can protect to provide a sense of security and comfort,” he said.
Meanwhile, the Main Director of PLN, Darmawan Prasodjo, said that PLN has 85 million customers. Meanwhile, as many as 270 million Indonesians are electrified. According to him, society has basic needs regarding a sense of security.
“For this reason, I ask that a new service expansion be executed, namely Electricity Accident Insurance. For PLN and banking, this is the same as value creation. PLN gets new revenue. He said that ” banking also gets new revenue, portfolio, and new customers from PLN customers,” he said.
KB Bukopin and PLN Insurance entered into a collaboration on 24 February 2023 in Batam City, and the signing of the cooperation agreement was officially held on 26 June 2023 at the PLN Headquarters.
Measuring the Reinsurance Industry Ahead of Elections, Opportunities or Challenges?
Bisnis.com, JAKARTA — The country’s reinsurance business is still predicted to have growth opportunities. However, several business actors are holding back expansion ahead of Indonesia’s presidential and legislative elections (Pilpres) in early 2024.
Director of the Center of Economics and Law Studies (Celios) Bhima Yudhistira said several factors indicate that the reinsurance business will still be positive in 2024.
“The prospects for the reinsurance business in a political year are good because many insurance companies want to insure their risks or share them with reinsurance companies,” Bhima told Bisnis Tuesday (27/6/2023).
According to Bhima, both political and security risks have increased in a political year. Likewise, with the mobility of people who returned to normal. This results in an additional premium which will also bring blessings to the reinsurance company’s premium.
In addition to the movement of community mobility, Bhima sees the threat of the El Nino phenomenon, which is thought to be related to disaster insurance.
“This El Nino risk can encourage insurance companies to mitigate by increasing premium payments to reinsurance because of concerns about increasing claims related to climate risk or extreme weather,” he said.
In terms of performance, in the first four months of 2023, the Financial Services Authority (OJK) recorded that the total investment in conventional reinsurance reached IDR 18.3 trillion. Compared to the same period in 2022, total investment grew 4.25 percent annually (year-on-year/yoy).
Referring to Insurance statistics published on June 5, 2023, the total assets recorded by conventional reinsurance reached IDR 35.62 trillion in April 2023. Its position increased by 11.47 percent yoy from the previous value of only IDR 31.95 trillion.
In detail, the total liabilities borne by reinsurance companies rose 16.75 percent yoy to IDR 26.91 trillion from the same position the previous year of only IDR 23.05 trillion. Meanwhile, equity was cut by 1.90 percent yoy from IDR 7.37 trillion to IDR 7.24 trillion.
This information is presented by L&G Insurance Broker – The Smart Insurance Broker.
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