Liga Asuransi – Hello risk takers, in the second week of March 2024 we will once again discuss developments and events in the world of insurance in Indonesia in the last week, as we all know, the object of insurance is not only vehicles, life, health or property, but is still broad. There is a wide range of objects that can be insured, 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.
Tugu Insurance Leads Transformation Through Effective Coordination in Credit Insurance Risk Mitigation
Tugu Insurance, prepares to face the new era with an effective coordination strategy with financial institutions. With new regulations emphasizing risk sharing, the company is taking important steps in mitigating credit insurance risks. In this context, Tatang Nurhidayat, President Director of Tugu Insurance, emphasized the importance of collaboration with banks and financing institutions as part of the risk mitigation process.
The new regulations, which were introduced in POJK Number 20 of 2023, become the basis for company efforts to face new challenges. Tatang believes that this regulation is not only aimed at strengthening the insurance industry, but also to support national economic growth. This regulation is also the result of learning from conditions during the Covid-19 pandemic, where financial stability and risk mitigation were the main focus.
Tugu Insurance, with a credit insurance portfolio that focuses on the industrial sector, anticipates the impact of this regulation in the hope of encouraging growth in general insurance industry premiums. Sudarlin Uzir, Technical Director of Tugu Insurance, underlined the importance of this regulation as an effort to strengthen risk mitigation and improve corporate governance in providing credit insurance.
Even though credit insurance premiums rose significantly in the previous year, payment claims also experienced a marked increase, especially in productive sectors such as micro insurance and People’s Business Credit (KUR). This shows the need for a solid strategy in risk management.
Source: https://finansial.bisnis.com/read/20240301/215/1745621/tugu-insurance-koordinasi-dengan-perbankan-soal-risk-sharing-asuransi-kredit?utm_source=desktop&utm_medium=search
Encouraging Development, OJK Records Life Insurance Premium Growth of 8.24% in January 2024
Chief Executive of the OJK Insurance, Guarantee and Pension Fund Supervision, Ogi Prastomiyono, revealed positive developments in the insurance industry at the beginning of 2024. Life insurance premiums showed an increase of 8.24% compared to the same period the previous year, while general insurance and reinsurance premiums recorded significant growth of 30.09% year-on-year.
In the OJK Monthly Board of Commissioners Meeting Press Conference, Ogi also highlighted the impressive performance of the commercial insurance industry with premium income increasing by 18.63% year-on-year. In addition, OJK recorded an increase in commercial insurance industry assets which showed solid capital, with the life insurance and general insurance industries recording 447.68% and 344.32% of risk-based capital (RBC), respectively.
Apart from that, OJK also noted developments in mandatory insurance, where the value of assets related to the Work Accident Insurance (JKK) and Death Benefit (JKM) programs increased. However, on the social insurance side, there was a decrease in the value of BPJS Health assets as of January 2024, although BPJS Employment assets managed to grow by 13.08% year-on-year. BPJS Employment assets consist of assets related to the insurance program and pension program, each of which showed positive growth.
Source: https://finansial.bisnis.com/read/20240304/215/1746299/pecah-telor-ojk-catat-premi-asuransi-jiwa-tumbuh-824-per-januari-2024?utm_source=desktop&utm_medium=search
Askrindo is at the forefront of innovation in making insurance product submissions easier with digital disruption
Askrindo, a credit insurance company, is trying to make applying for insurance products easier for customers by implementing technological adaptations. In the insurance industry, technology adaptation has become part of ongoing business transformation. With digitalization, products and business processes can be delivered more effectively and efficiently to customers.
This company uses various digital business networks, including host to host, portals, partner platforms, mobile applications, microsites, and will continue to expand its digital business network to increase convenience for customers. Askrindo collaborates in an effort to disrupt and modernize the procurement process in the current digital era.
Vincentius Wilianto, Technical Director of Askrindo, emphasized Askrindo’s involvement in digital disruption, especially in the tender process with Pengadaan.com the previous year. He explained that Askrindo continues to adapt to changes in existing technology, including applying for Suretyship products which previously required direct presence at a branch office, but can now be submitted via the Pengadaan.com platform. Apart from updating business processes, this collaboration also functions as literacy for customers through socialization regarding digital Suretyship applications.
The IT system was developed in accordance with the company’s strategic direction, with the hope that this Suretyship service can facilitate a faster and safer work process. Apart from that, Askrindo and Pengadaan.com are committed to continuing to develop other products.
Insurance Business Transformation in Asia-Pacific: Focus on Underwriting and Risk in an Era of Change
Insurance companies are expected to emphasize careful underwriting and risk selection. According to data from S&P Global Ratings, insurance company ratings in the Asia-Pacific region are projected to remain stable, even though economic conditions and fundamental changes are putting pressure on earnings.
Craig Bennett, a credit analyst at S&P Global Ratings, explained that with central banks across the Asia-Pacific region planning interest rate adjustments at different times, the relative value of assets and returns, as well as hedging costs, will likely change.
“Slowing economic growth could impact policy retention, new premium income and investment credit quality,” he said as reported by Insurance News, Thursday, February 7 2024.
Bennett added that insurance companies are expected to focus on smart underwriting and risk selection to face these challenges. According to a commentary from S&P entitled “Asia-Pacific Insurance Sector Trends: Returning Focus to Basics as Challenges Emerge”, credit trends in the insurance sector in the region are considered stable.
These conditions show that 98 percent of rated insurance companies maintain a stable outlook. Monetary policy adjustments by major central banks could increase capital market volatility. Insurance companies in Japan and Taiwan face risks related to asset and foreign exchange movements, which can impact capital buffers.
With slowing economic growth, insurance companies are expected to prioritize investment risk monitoring. Credit pressures in the property and alternative investment sectors may encourage insurers to re-evaluate the risk-reward balance and become more selective.
Discussions about climate change and sustainable finance also present dual risks for insurance companies, both in underwriting and investment. Extreme weather events can increase claims for property and casualty reinsurers, while higher reinsurance costs and expanding catastrophe budgets can impact profitability.
Premier Pro: The Latest Life Protection Solution for BCA Membership Customers with Innovative Features and Integration of Superior AIA Services
PT AIA Financial (AIA) and PT Bank Central Asia Tbk (BCA) have launched Wealth Premier Protection (Premier Pro), a new life protection solution tailored to the needs of membership customers, including BCA Solitaire and Prioritas. Premier Pro is designed to provide optimal life protection, be part of an inheritance planning strategy and anticipate unexpected risks, while offsetting the impact of inflation on the value of the Sum Insured.
AIA President Director, Sainthan Satyamoorthy, explained that Premier Pro offers traditional life protection with a protection period of up to 99 years, with a choice of single premium payments, 2 years, 5 years or 10 years. There are two plans available, namely Plan Elevate and Plan Viva. Plan Elevate offers innovative life protection with Sum Assured that grows up to 300% of the initial value, equipped with comprehensive protection against the risk of accidents. Meanwhile, the Viva Plan offers Life Benefits and protection against the risk of accidents, with a Sum Insured that can grow up to 276% of the initial value.
Premier Pro is also integrated with AIA’s superior services, such as AIA Altitude, which provides special services including free medical check-ups at selected hospitals in Indonesia, Malaysia or Singapore. This is an effort by AIA and BCA to meet protection needs and provide added value to their membership customers.
Source: https://www.jpnn.com/news/aia-dan-bca-luncurkan-wealth-premier-protection
AI Tops Global Concern List: Rise of AI Content Fueling Biggest Anxiety in 2026
Global risk experts have ranked Artificial Intelligence (AI) technology as the second most significant threat in 2024. However, it is predicted that in the next two years, by 2026, AI will rise to the top of the list of global concerns. These concerns arise as AI content is increasingly created that is difficult to distinguish from human content, creating serious challenges in detecting and responding to inaccurate or misleading information, whether in the form of misinformation or disinformation.
Chief Risk Officer of PT Zurich Asuransi Indonesia Tbk, Wayan Pariama, conveyed this in a limited discussion in Jakarta on March 7 2024. According to him, significant structural transformations, including climate change, geopolitical shifts and demographic transition, are occurring in the world. The Global Risks Report 2024, a collaboration between the World Economic Forum and Zurich and Marsh McLennan, describes the findings of the Global Risks Perception Survey (GRPS) involving nearly 1,500 global risk experts.
This report highlights that the risk of misinformation and disinformation is a growing concern in the next two years. Other risks in the top five global concerns are extreme weather, societal polarization, cost of living crisis and cyber attacks. These five risks are considered the main threats that have the potential to cause a global crisis in 2024.
In this context, Chairman of the Indonesia AI Society and Associate Professor at the Indonesian Catholic University Atma Jaya Jakarta, Lukas, stated that concerns regarding the use of AI technology can be overcome with a strategic, integrative approach. According to him, the potential of AI can be a driving force for industrial transformation and act as a collaborative partner in innovation and risk management.
Wayan added that Zurich Indonesia has adopted artificial intelligence (AI) as part of the company’s strategy, especially in providing better services and experiences to customers. The use of AI technology, such as in the vehicle insurance acquisition process, helps provide more accurate inspection reports, speeding up the process, and reducing errors that may arise from human intervention. The company continues to be committed to optimizing opportunities through the application of AI technology.
Source: https://mediaasuransinews.co.id/asuransi/ai-jadi-risiko-paling-dikhawatirkan-di-tahun-2026/
IFG and Indonesia Re Allied in Data Standardization to Drive Digital Transformation of the Insurance Industry
Indonesia Financial Group (IFG), as a state-owned holding company in the insurance, guarantee and investment sectors, is collaborating with PT Reinsurance Indonesia Utama (Indonesia Re) to direct transformation in the insurance industry through standardizing the provision of new data and information.
IFG Technical Director, Rianto Ahmadi, stated that this collaboration aims to strengthen risk analysis in the insurance business by improving the quality of technical data used in the company’s operational processes. This step was taken in response to the push to move towards digitalization in order to strengthen more solid risk analysis with the support of quality data.
Rianto added that this collaboration will speed up the process of standardizing technical data, especially regarding charts of accounts (CoA) and technical master libraries, which are the basis for all holding members in the fields of general insurance, life insurance and guarantees. Although there are still challenges because these companies have different standards, IFG is determined to create consistent standards throughout the Indonesian insurance industry.
He also emphasized that standardizing technical data will help create a stronger risk analysis culture and enable insurance companies to formulate more effective business, underwriting and risk management strategies based on accurate data.
Indonesia Re’s Director of Operations Engineering, Delil Khairat, added that the visions of IFG and Indonesia Re are aligned in efforts to improve the quality of data presentation and management to support better evaluation of business and operational processes. The standardization introduced will become a guide for insurance companies that use Indonesia Re’s services and is expected to become an industry standard that applies to all industry players.
This collaboration is considered a joint commitment by IFG and Indonesia Re to support the digital transformation of the insurance industry, in line with the 2023-2027 Indonesian insurance development road map prepared by the OJK and industry stakeholders.
This article is brought to you by L&G Insurance Broker, insurance broker Indonesia..
—
LOOKING FOR INSURANCE PRODUCTS? DON’T WASTE YOUR TIME AND CONTACT US NOW
24 JAM L&G HOTLINE: 0811-8507-773 (CALL – WHATSAPP – SMS)
website: lngrisk.co.id
Email: customer.support@lngrisk.co.id
—
