Liga Asuransi – Dear readers. How are you? As usual, we are again presenting selected information about the world of insurance in the country. This week there has been a lot of the latest information from the insurance world. For that, we always present it to loyal readers.
We hope that this information can sharpen your insurance knowledge and is certainly useful. If you are interested in this news, please share it with your colleagues so that they also understand like you.
- BRI Life is Optimistic about Record Performance Growth in 2023
KONTAN.CO.ID – JAKARTA. PT Asuransi BRI Life or BRI Life is optimistic that it can record growth in 2023 even though the insurance industry is full of challenges. To be able to achieve growth, the company held a National Working Meeting (Rakernas).
Main Director of BRI Life Iwan Pasila said, throughout 2022, BRILife recorded significant growth amid the uncertainty in the contracted life insurance market in Indonesia.
The company pocketed an Annualized Premium Equivalent (APE) of IDR 3.26 trillion, growing by more than 30% year on year (YoY). Total gross premiums reached IDR 8.11 trillion, growing by more than 30% YoY.
“This growth was supported by a strategy to penetrate all BRI Bank customer segments with products tailored to the needs of each segment, using digital technology to simplify processes and mitigate risks,” he said in his official statement, Thursday (12/1).
He said BRILife was able to execute all initiatives properly, so that all elements, starting from marketing, operations and back office support, could make a positive contribution to BRILife’s growth in 2022.
According to Iwan, this growth could not be separated from the support of shareholders. BRI has provided full support in penetrating all customer segments by utilizing digital technology, support from FWD through expertise in life insurance risk management and in the use of digital technology, as well as support from the BRI Workers Welfare Foundation (YKP).
He reminded me that success in 2022 does not automatically guarantee success in 2023. Every BRILiaN Tangguh in BRILife must be able to carry out all strategic initiatives that have been prepared beforehand and must be able to identify risks that can thwart the achievement of the Company’s targets.
“Implementation of all strategic initiatives summarized in the Target Operating Model for 2023 must be carried out in a disciplined manner, to ensure the achievement of all plans that have been made,” he added.
Iwan said BRILife has also prepared new products needed by various customer segments at Bank BRI. The company will focus on meeting the needs of life insurance protection for all existing segments. BRILife will focus on protection products for the retail and micro-segments, as well as providing protection and investment products for the Priority segment.
- BPJS Ketenagakerjaan Builds JMO Application into Superapps, There’s a Digital Wallet
Bisnis.com, JAKARTA – The Employment Social Security Administration Agency (BPJS) or BPJamsostek plans to develop the Social Security Mobile (JMO) application into super apps. This development is targeted to be completed in the second quarter of 2023.
Assistant Deputy for Public Relations BPJS Ketenagakerjaan Budi Hananto said the JMO super apps could later be used to borrow emergency funds to pay mortgage installments (KPR). In addition, the application also has a digital wallet (e-wallet) feature as an alternative to cashing out claims for the Old Age Security (JHT) program, apart from using a bank account. There will also be many new features in these super apps.
“The direction of development is there. The [e-wallet] is already running, but it must be optimized and it will become more personal,” said Budi on the sidelines of a media gathering, Tuesday (10/1/2023).
Furthermore, Budi said that the disbursement of the JHT program under IDR 10 million could already be through the JMO application. However, going forward, his party will develop claims for other programs, such as Work Accident Benefits (JKK), Death Benefits (JKM), including Pension Benefits (JP).
“We already have an e-wallet, but it can’t be used for JHT and if you withdraw [JHT claims] you have to transfer to a bank account. But in the future, not only to accounts but also to e-wallets. This becomes super apps like Gojek or Grab, the direction is that way,” he said.
Meanwhile, the development of the JMO application is carried out to provide more benefits, convenience, and comfort to participants which are in line with the duties of the Employment BPJS.
“The e-wallet is to make things easier, because BPU [non-wage earners] are sometimes not bankable or don’t have a bank account, so you can use an e-wallet,” he added.
According to the plan, Budi submits claims for five program benefits at Employment BPJS, such as Old Age Security (JHT), Death Insurance (JKM), Work Accident Insurance (JKK), Pension Insurance (JP), and Job Loss Benefits (JKP) can be disbursed through e-wallet integrated with JMO super apps. This makes Employment BPJS still have to develop security and ease of claim disbursement.
“[Superapps JMO] will be completed in the near future this year , in the middle of the second quarter/2023, hopefully,” he said.
- Inflation will Hoist Insurance Claims
Business.com, JAKARTA— Claims inflation will hit the insurance industry again in 2023. Economist and Director of the Center of Economic and Law Studies (Celios) Bhima Yudhistira confirmed this
“Indeed, the threat of inflation claims is very serious, because the claims are increasing. For example, from bank credit insurance because of concerns that non-performing loans [NPL] will increase,” Bhima told Bisnis, Thursday (12/1/2023).
Bhima even predicts that claims from the banking industry will continue to increase in 2023. This increase will have an impact on the health profitability of insurance companies.
According to Bhima, an increase in the price of consumer goods could affect the premiums paid to insurance companies to be lower. In addition, he also assessed that sales of motorized vehicles may not be optimal due to various post-Covid-19 pandemic geopolitical and economic situations.
Under these conditions, Bhima believes that insurance companies must increase their capital, one of which is by issuing new shares or rights issues.
“Or by consolidating fellow insurance companies, for example, then consolidation can also be done in order to cut down subsidiaries that have no prospects or do not have profitability and the risks are relatively high,” he explained.
According to Bhima, companies also need to improve risk management. Including being careful in offering insurance products to certain segments.
“What is feared will make future claims higher,” he said.
In addition to risk management, companies must also avoid premium pricing strategies. Like just pursuing promos to attract more customers, but sacrificing income from premiums. This has the potential to affect the liability of insurance companies.
Bhima also advised insurance companies to expand their channels to segments that continue to grow, such as retail or parcel logistics and travel insurance.
“Cooperation with online travel agents is a profitable variant of insurance products that have quite good profitability and relatively small risks that must be encouraged. So that might be one way to keep the claims from growing,” he said.
In 2022, the Director of PT Asuransi Sinar Mas Dumasi MM Samosir also assesses that the increase in the inflation rate will also encourage an increase in claims expenses in the general insurance business, especially in the health insurance and motor vehicle insurance business lines.
According to him, this is because the components included in the insurance company’s coverage, such as medicines and motor vehicle spare parts, will experience price increases due to inflation.
“Claims will definitely increase. Usually, inflation rises just a little, the price of medicines immediately rises, and car spare parts immediately increase. So it is possible that there will be a lot of effects there,” Dumasi told Bisnis, in September 2022.
On the other hand, global law firms are in the insurance, construction, energy, marine, natural resources, and aviation sectors, Clyde & Co. said that claim inflation will again have an impact on the insurance industry in 2023. Mainly due to economic uncertainty and the war situation in Ukraine.
- Allianz Life Indonesia Announces UUS Spin-Off Plans
Bisnis.com, JAKARTA – The management of PT Asuransi Allianz Life Indonesia (Allianz Life Indonesia) has officially announced plans for sharia business expansion through a spin-off or separation of sharia business units (UUS) to become legal entities, namely PT Allianz Life Syariah Indonesia Insurance (Allianz Life Syariah Indonesia).
Based on the announcement published in the Friday edition of the Bisnis Indonesia Daily (13/1/2023), the directors explained that the UUS spin-off would be carried out by establishing a new subsidiary followed by the transfer of the entire sharia membership portfolio to the new subsidiary.
Meanwhile, the separation was carried out in order to comply with the provisions of Article 127 paragraph 2 of Law Number 40 of 2007 concerning Limited Liability Companies, Article 87 paragraph 1 of Law Number 40 of 2014 concerning Insurance, and Article 17 paragraph 1 and Article 18 paragraph 3 POJK Number 67/POJK.05/2016 concerning Business and Institutional Licensing of Insurance Companies, Sharia Insurance Companies, Sharia Reinsurance Companies.
“PT Asuransi Allianz Life Indonesia (Allianz Life Indonesia) hereby announces plans for business expansion through the separation of the Sharia Business Unit from Allianz Life Indonesia,” said the directors of Allianz Life Indonesia.
With the expansion of the business through the UUS spin-off, the directors said that Allianz Life Syariah Indonesia has at least three missions, one of which is to encourage the growth of sharia insurance by protecting many Indonesian people through providing insurance products based on sharia principles.
Furthermore, Allianz Life Syariah Indonesia also has a mission to strengthen the sharia product and service solutions offered by Allianz Life Syariah Indonesia by continuing to innovate and digitize according to customer needs.
“Allianz Life Syariah Indonesia also makes the Allianz Group in Indonesia more complete in offering protection solutions, where Allianz Life Indonesia will continue to provide protection as a conventional life insurance company and Allianz Life Syariah Indonesia will be here to provide life insurance based on sharia principles,” he explained.
Furthermore, the directors convey that Allianz Life Syariah Indonesia has been established as a legal entity on the date of this announcement and is in the process of preparing to obtain a license as a sharia life insurance company.
“Business expansion through the separation of UUS from Allianz Life Indonesia is carried out by establishing Allianz Life Syariah Indonesia followed by the transfer of the entire membership portfolio to Allianz Life Syariah Indonesia, as stipulated in Article 18.1(a) POJK No.67/2016,” he added.
- OJK Issues New Regulations for Bank Capital and Insurance Brokerage Companies
The Financial Services Authority (OJK) issued two new regulations related to banking and the insurance industry through the new Financial Services Authority Regulations (POJK), namely POJK Number 27 of 2022 and POJK Number 28 of 2022.
Director of Public Relations OJK, Darmansyah conveyed, POJK 27/2022 was issued to make adjustments to the calculation of banking capital which is more sensitive to risk by strengthening it from a risk management perspective. This is in line with international standards, namely Basel III: Finalizing post-crisis reforms or Basel III reforms.
Several changes to the POJK Minimum Capital Adequacy Requirement (KPMM) are regarding technical adjustments to the calculation of risk-weighted assets (RWA) which are further regulated in the relevant OJK Circular Letter.
Meanwhile, the components of the Bank’s core capital and supplementary capital that have been regulated in this POJK have not changed.
Following are some of the main provisions in POJK 27 of 2022:
- Adjustments to the Basel III Standard reforms, including the implementation of the obligation to calculate Market Risk RWA for all Banks starting January 1, 2024;
- The regulatory umbrella related to the obligation to calculate capital for the Bank’s exposure to the central counterparty and the provision of margin for derivative transactions that are not carried out through the central counterparty; and
- Alignment with other POJKs such as the obligation to report KPPM through the OJK reporting system. POJK 27/2022 has come into force since it was promulgated on December 28, 2022.
In addition, POJK Number 28 of 2022 is intended to follow the practice of conducting the business of Insurance Brokerage Companies which continues to develop along with changes in the business environment and community needs.
The accelerated use of digital technology in services provided by Insurance Brokerage companies and the increasing need for cooperation between Insurance Brokerage Companies and other parties to improve the quality of insurance brokerage company services has had a positive impact on the insurance industry and consumers.
However, on the other hand, it also poses a risk so that POJK 28 of 2022 stipulates further regulation and supervision while still providing room for innovation.
In addition, in order to increase the effectiveness of supervision by OJK, this POJK has made adjustments to several provisions related to the frequency of submission of periodic reports, the imposition of sanctions on Insurance Brokerage Companies, Reinsurance Brokerage Companies, and Insurance Loss Appraisal Companies.
The main provisions in POJK 28/2022 include:
- Regulations regarding digital insurance broker services
- Obligations of insurance companies to ensure that experts carry out their duties and responsibilities;
- Cooperation between insurance or reinsurance brokerage companies (co-broking)
- Obligation to submit quarterly financial reports; and
- Adjustments to regulations regarding administrative sanctions, including administrative fines.
The issuance of POJK 28/2022, said Darmansyah, is expected to optimize the role of Insurance Brokerage Companies, Reinsurance Brokerage Companies and Insurance Loss Appraisal Companies. This is to support increasing national economic growth, maintaining financial system stability, and realizing public financial independence as well as supporting efforts to increase equity in development.
“POJK 28 of 2022 will come into force on the date of promulgation on December 28, 2022,” said Darmansyah.
- Ways to Prevent Health Insurance Claims from Being Rejected
KONTAN.CO.ID – The case of failure to claim health insurance for the treatment of artist Indra Bekti has attracted public attention. Indra Bekti is known to have suffered from a ruptured brain blood vessel which is included in a critical illness.
Especially when Indra Bekti’s wife, Aldila Jelita, revealed that she would be holding a fundraiser to help cover her husband’s medical expenses.
Indra Bekti experienced a claim rejection because he had only had health insurance for about 6 to 7 months. Meanwhile, health insurance for critical illness can be used if it has passed the one-year waiting period.
Summarized from Lifepal’s official statement, Insurance Observer Irvan Rahardjo revealed, waiting periods are commonly applied by insurance companies to further simplify the underwriting process or risk identification of prospective customers by insurance companies.
The waiting period is beneficial for customers because it makes premium rates cheaper and shortens the policy filing process. Even so, this waiting period often makes insurance customers unable to take advantage of the expected benefits immediately.
Learning from these conditions, you must really read the details of the agreed insurance policy so you don’t experience rejection when submitting an insurance claim.
How to claim anti-rejection health insurance Health
insurance The types of health insurance claims are made cashless at insurance company partner hospitals and cash (reimbursement) at non-insurance company partner hospitals.
For partner hospitals, each insurance company is different. For example, while there are insurance companies that cover claims in hospitals all over the world, there are also those that exclude the United States.
Meanwhile, benefits for health insurance claims depend on the type of policy chosen, such as outpatient, inpatient, or dental care, and maternity benefits.
How to claim cashless health insurance
As a health insurance claim method, cashless health insurance can be done without the insured having to pay personal expenses first.
How claim cashless health insurance only requires an application or an insurance card. This claim method can only be made at a hospital that is an insurance partner.
The following are the stages of how to claim cashless health insurance:
- Participants come to partner hospitals
- Show or swipe the insurance participant card or personal data in the insurance company application to the registration section
- The hospital confirmed and verified the insurance company
- Participants receive treatment as desired
- When finished, show or swipe the participant card again at the cashier or payment section for the claim submission process
- The hospital will again confirm with the insurance company regarding the guarantee of coverage for the treatment carried out
- The claim process is complete, if there are excess claims or costs that exceed the insurance coverage, then the participant must pay for it.
- Two Times The Liquidation Team Was Refused to Enter the WanaArtha Office!
Jakarta – The liquidation team for PT Asuransi Jiwa Adisarana Wanaartha or WanaArtha Life (PT WAL) was refused entry to the WanaArtha office for the second time. The first rejection occurred on January 2, 2022.
Regarding this, the President Director of WanaArtha Adi Yulistanto gave an explanation. He said that his party had not received any direction or decision from the Financial Services Authority (OJK).
“This morning the liquidation team asked to enter to participate in the EGMS. We were forced to refuse because so far we have not received directions or decisions from the OJK regarding the existence or whereabouts of the liquidation team,” he said at a conference at the Wanaartha Life Head Office at Graha WanaArtha Jalan Mampang Prapatan, South Jakarta, Monday (9/1/2023).
The liquidation team was led by Liquidation Harvardy M. Iqbal and Sherly Anita Metanfanuan as members. Adi highlighted the existence of a liquidation team and said the board of directors was still waiting for a decision from the OJK.
“The existence of the liquidation team, the directors are still waiting for the OJK’s decision. If the OJK decides that the liquidation team can be accepted or exists, we will open the door as wide as possible to carry out their duties,” he said.
Adi denied that his party was not cooperative. He said WanaArtha was only following OJK directions.
“Meanwhile, it’s not that we’re uncooperative, we’re just following OJK’s directions. Because our orientation is OJK. When OJK makes a decision, we’ll definitely comply,” he said.
On the other hand, Harvardy said his presence was to attend the General Meeting of External Shareholders (EGMS).
“We were also asked to be present by the Controlling Shareholders (PSP) to attend today, but were not allowed to enter at all,” he said via a cellular connection.
Harvardy admitted that he had been waiting for about an hour in front of WanaArtha’s office. However, WanaArtha’s board of directors still refused to allow him to enter.
“Boro-boro can discuss, boro-boro provides the requested documents, I am not allowed to enter at all. I have been standing in front of the WanaArtha fence for more than an hour, from 10 am to 11 am,” he added.
Even so, according to him, the documents that WanaArtha had asked for had already been brought. And clarification regarding the legitimacy of Harvardy as the proxy of the shareholders should be discussed at the EGMS.
“Regarding the required documents, I have brought them. Clarification regarding my legitimacy as the proxy of the shareholders should have been discussed at the GMS earlier,” he said.
Harvardy previously claimed that the liquidation team had been approved by OJK, referring to the Financial Services Authority Letter Number: S-259/NB.23/2022 dated December 13, 2022 regarding the application for disbandment and the appointment of the liquidation team for PT Asuransi Jiwa Adisarana Wanaartha.
He said that the OJK had approved the Liquidation Team, which consisted of him and Sherly Anita Metanfanuan as members.
As for today, WanaArtha held an EGMS. However, the minority and majority shareholders were not present, so they did not fill the quorum. WanaArtha will conduct the third EGMS within 7-21 days after the decision from the South Jakarta district court (PN).
This information is presented by L&G Insurance Broker – The Smart Insurance Broker
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