Liga Asuransi – Hello risk takers, let’s discuss the latest developments and interesting events in the world of insurance in Indonesia over the past week. As usual, we would like to remind you that in the everyday business world, insurance objects are not only limited to vehicle, health, life and property insurance. The scope of objects that can be insured is very broad, covering almost all business processes from A to Z. In this edition, we have collected 7 selected news related to insurance that are important for you to know. This also includes a topic that has been hot recently, namely Tapera.
As always, if you found this article interesting, feel free to share it with your peers so they can understand it as well as you.
PT Asuransi Tugu Pratama Indonesia Tbk (TUGU) Cancels Plan to Acquisition PT Asuransi TakafulGeneral
A subsidiary of a state-owned company, PT Asuransi Tugu Pratama Indonesia Tbk (TUGU), had targeted PT Asuransi TakafulGeneral for acquisition in order to fulfill the Sharia Business Unit (UUS) Spin Off provisions. However, this plan was not implemented.
General Takaful is a sharia general insurance company that was founded in 1995. Based on its latest financial report, this company is 95% owned by the Jasa Savings and Loans Cooperative, Andy Arsian Djunaid 2.5%, and Bahroii 2.5%.
According to CNBC Indonesia sources, General Takaful is Tugu Insurance’s target for merger. This was confirmed by the General Chair of the Jasa Savings and Loans Cooperative (Kospin), Andy Arslan Djunaid. “TUGU was interested but apparently it was canceled,” said Andy to CNBC Indonesia on Wednesday, July 31 2024.
President Director of Tugu Insurance, Tatang Nurhidayat, when asked about this, chose not to mention the name of the company that was the acquisition target. He stated that his party had several alternatives for its UUS spin off. “We have several alternatives for the UUS spin off. We are targeting the spin off to be completed next year,” explained Tatang when confirmed some time ago.
With the cancellation of this merger action, no corporate action application documents have been submitted by the two companies to the Financial Services Authority (OJK). “There is no such thing (merger application) yet,” said the Chief Executive of the OJK Insurance, Guarantee and Pension Fund Supervisor, Ogi Prastomiyono when met in Jakarta on Friday, July 31 2024.
Previously, TUGU, which is owned by PT Pertamina (Persero), planned to spin off UUS by acquiring another insurance company and merging it or merging with Tugu Insurance Syariah Insurance. This step was taken as part of Tugu’s efforts to fulfill the Financial Services Authority’s (OJK) call for a spin-off or separation of UUS in Indonesian insurance institutions.
“We will try next year, but it is still in the study stage so there is no information disclosure yet,” said President Director of Tugu Insurance, Tatang Nurhidayat to CNBC Indonesia on Wednesday, August 30 2023. Tatang also emphasized that his party had not yet conducted an assessment of the prospective companies that would be invited. to join.
Thus, Tugu Insurance is still looking for other alternatives to fulfill the UUS spin off provisions and hopes to complete it next year.
Media Asuransi Holds Insurance Market Leaders Award 2024
Media Asuransi again held the Insurance Market Leaders Award event. In the 2024 Insurance Market Leaders Award, Media Asuransi gave appreciation to 73 companies in the insurance industry that showed the best performance in 2023 based on gross premiums.
This awards event honored 15 life insurance companies and 15 general insurance companies for their best performance in 2023. In addition, three reinsurance companies were also recognized based on their gross premium performance. In 2024, Media Asuransi through the Media Insurance Research Institute (LRMA) will expand the scope of the awards by adding categories for sharia life insurance and sharia general insurance, each with the five largest award recipients based on gross contributions.
The LRMA does not differentiate between full-fledged sharia companies and sharia units in selecting winners. Apart from that, LRMA also ranked 15 insurance brokerage companies and 15 reinsurance brokerage companies based on their best performance in 2022 based on brokerage fees.
The award ceremony held at JS Luwansa, Jakarta on Tuesday evening, July 30 2024, was the sixth time the Insurance Market Leaders Award was held by Media Asuransi.
In his speech, the Head of the Insurance Media Research Institute (LRMA), Mucharor Djalil, said that 2024 will be the sixth time the Insurance Market Leaders Award will be held, which was first held in 2019. “After conducting studies since 2014, five years later, namely 2019, “We give the Insurance Market Leaders Award to the leaders of the life insurance and general insurance markets,” said Mucharor Djalil.
In 2023, an award category was added for the reinsurance industry. And in 2024, sharia insurance will also be included in the Insurance Media Market Leaders study. “We hope that with the expanded Insurance Market Leaders, we can conduct a more comprehensive study of insurance market leaders in Indonesia,” he added.
The importance of the Insurance Market Leaders Award, according to Mucharor, lies in the strong influence these companies have on the insurance industry as a whole and their role in determining the future of the Indonesian insurance industry. One of the positive impacts is increasing public confidence in the insurance industry, especially in terms of ability and speed in processing and paying claims.
“Congratulations to the winners of the Insurance Market Leaders Award 2024 Media Asuransi, namely life insurance companies, general insurance companies, reinsurance companies, sharia life insurance companies, sharia general insurance companies, insurance broker companies and reinsurance broker companies,” said Mucharor Djalil.
The study conducted by LRMA used nine financial indicators from published financial reports of life, general, reinsurance and sharia life insurance companies, as well as general sharia as of 31 December 2023. These indicators include premium income, net premium income, claims and benefits paid, claims expenses and benefits paid, investment, investment returns, equity, assets, and profit/loss after tax.
The results of the LRMA study in 2024 show that market leaders in life insurance and general insurance managed to maintain their position, despite a shift in position from 10 to 15. Several companies were replaced from the ranks of the 15 market leaders, while others managed to enter as new occupants, indicating competition fierce among insurance companies amidst various challenges in recent years.
A total of 15 market leaders of general insurance companies control a market share of 63.44% in 2023, an increase from 62.66% in the previous year. Meanwhile, 15 market leaders of life insurance companies controlled a market share of 79.26%, down from 81.10% in the previous year. For the three reinsurance company market leaders, the market share will increase to 81.21% in 2023 from 79.78% in 2022. The five sharia life insurance market leaders control a market share of 80.87% in 2023, while the five sharia general insurance market leaders control market share of 66.70% in the same year.
For the 15 market leaders of insurance brokerage companies, the market share will be 61.20% in 2022, while the 15 market leaders of reinsurance brokerage companies will control a market share of 79.21% in the same year.
Source : https://mediaasuransinews.co.id/asuransi/inilah-73-market-leaders-industri-perasuransian-nasional/
The government requires TPL and property insurance through the PPSK Law
Through Law Number 4 of 2023 concerning Development and Strengthening of the Financial Sector (UU PPSK), the Indonesian Government plans to require motorized vehicles to have third party liability (TPL) insurance. Apart from that, people are also required to have home insurance which includes protection against natural disasters, including fire.
President Director & CEO of Oona Insurance, Vincent C. Soegianto, welcomed this policy. According to him, the growth in demand for fire insurance shows a positive trend, reflected in an increase of 20% in the last three years. “Fire insurance premiums are targeted to increase by 17% in 2024,” said Vincent.
Vincent also considers property insurance, including fire insurance, to be an excellent risk management instrument for protecting property assets. “Property insurance provides important protection for property owners in the face of unexpected risks,” he added.
In line with Oona Insurance, Zurich Indonesia Country Manager, Edhi Tjahja Negara, stated that property insurance continues to show growth after the COVID-19 pandemic. “This growth is driven by economic improvement and improving the property business,” said Edhi.
However, Edhi also highlighted the challenges faced in efforts to increase property insurance penetration. “Low literacy and education regarding insurance is still a major obstacle, both for residential and business actors,” he said.
The government’s plan to make property insurance and fire insurance mandatory has received attention from insurance industry players. This policy is expected to increase public awareness and protection against the risk of fire and natural disasters.
To understand the views of industry players regarding plans to implement mandatory property insurance and fire insurance, watch Anneke Wijaya’s dialogue with the President Director & CEO of Oona Insurance, Vincent C. Soegianto, and Zurich Indonesia Country Manager, Edhi Tjahja Negara at the Power Lunch event on CNBC Indonesia on Tuesday, July 30, 2024.
Tugu Insurance Prints Consolidated Net Profit of IDR 439 Billion in Semester I/2024
PT Asuransi Tugu Pratama Indonesia Tbk (Tugu Insurance), a subsidiary of PT Pertamina (Persero), managed to record a consolidated (unaudited) net profit of IDR 439 billion in semester I/2024. Based on the Consolidated Financial Report as of June 2024, the company recorded gross premium income of IDR 5.2 trillion, an increase of 39.0 percent year-on-year (YoY).
Net premiums, after deducting reinsurance premiums and changes in reserves, grew 33.7 percent YoY to IDR 2.0 trillion, in line with the increase in gross premiums. This positive performance was supported by significant growth in several main business lines.
Tugu Insurance’s Director of Finance and Corporate Services, Emil Hakim, explained that gross premiums from fire insurance grew 61.2 percent YoY, ship hulls rose 13.7 percent YoY, on-shore increased 66.8 percent YoY, and other segments increased by 28.8 percent YoY. “Tugu Insurance’s performance has improved much better compared to last year thanks to the strategy implemented by the company as well as the increasingly improving conditions of the general insurance industry and the Indonesian economy,” said Emil in his official statement on Friday, August 3 2024.
In addition, Tugu Insurance’s investment income grew 18.2 percent YoY to IDR 250 billion in June 2024, while income from other businesses increased 10.7 percent YoY to IDR 264 billion. Tugu Insurance’s total revenue reached IDR 2.2 trillion in semester I/2024, with an increase of 25.9 percent YoY.
Emil is optimistic that Tugu Insurance’s performance in 2024 will be better than the previous year. Even though net claims expenses increased 16.7 percent YoY to IDR 1.1 trillion, this increase was still lower than the premium growth experienced by Tugu Insurance.
Total operating expenses and other operating expenses only increased by 18.2 percent YoY to IDR 597 billion, most of which were variable costs due to business growth. Tugu Insurance’s operating profit reached IDR 517 billion in semester I/2024, growing 68 percent YoY compared to semester I/2023 which reached IDR 308 billion. The company’s net profit attributable to the parent entity reached IDR 439 billion.
President Director of Tugu Insurance, Tatang Nurhidayat, explained that the company’s performance throughout the first semester of 2024 was inseparable from its efforts and commitment to managing risk appropriately. Tugu Insurance also optimizes captive business in several main sectors, penetrates non-captive business, and builds various new distribution channels. “The company also continues to develop various competitive products, so that they are acceptable and in line with market needs. Apart from that, Tugu Insurance’s achievements are also supported by improvements in the performance of the company’s subsidiaries,” concluded Tatang.
With this achievement, Tugu Insurance shows a strong commitment to sustainable growth and development in the insurance industry, as well as continuing to make positive contributions to shareholders and society.
The Phenomenon of Kidney Failure in Children, Emphasizes the Importance of a Healthy Lifestyle and Health Insurance
The phenomenon of kidney failure experienced by children at Cipto Mangunkusumo Hospital (RSCM) Jakarta has gone viral on mass media and social media. The media often highlights the medical costs that parents have to pay. General Chair of the Indonesian Pediatrician Association (IDAI), dr. Piprim Basarah Yanuarso, stated that at least 1 in 5 Indonesian children aged 12-18 years have the potential to experience kidney damage. The main cause is an unhealthy lifestyle.
“This is one of the early indicators of kidney damage. The lifestyle of our children aged 12-18 years is very worrying. “His eating patterns, movement patterns, sleep patterns often stay up late, and are lazy about exercising,” said Dr. Piprim. “It cannot be denied that the incidence of obesity is increasing in children. About 80 percent of children with diabetes (type 2) are obese. “This is the origin of all diseases, including kidney disease,” he added.
Apart from education about the importance of maintaining health, insurance is one way to mitigate the risk of expenses due to illness. However, what kind of insurance is right for children to have? Following is the discussion.
The Right Insurance for Children
Not Life Insurance
Life insurance aims to protect family or loved ones from loss of family income due to death or total permanent disability of the family backbone. Considering the benefits, the right party to have life insurance is parents, because they are the ones who cover the lives of their family members, including children.
Health Insurance
The right insurance for children to have is health insurance. This insurance provides the most basic financial protection, because its function is to cover medical costs, both inpatient and outpatient. However, it is not uncommon for health insurance to disburse the sum assured like life insurance if the insured dies, but the amount is generally not as large as life insurance.
Is Health Insurance Important for Children?
Answering questions about the need for children to be given health insurance, it all comes back to the parents’ financial condition. If private health insurance premiums are too expensive, BPJS Health can be an alternative for outpatient or inpatient treatment.
Ensuring children have health insurance is an important step in protecting them from the financial risks of illness. With health insurance, parents can rest assured that their children have adequate protection. Apart from that, health insurance can also help reduce the burden of medical costs which can be very high, especially for serious illnesses such as kidney failure.
Thus, health insurance not only provides financial security for families, but also ensures children get the medical care they need on time.
Children’s health is the main priority for every parent. With an unhealthy lifestyle posing a threat to kidney health and other health problems, having health insurance is a wise step to mitigate financial risks due to disease. Parents need to consider health insurance as a form of protection for their children, either through private insurance or BPJS Health, for a healthier and safer future.
Must Know! Starting 2025, pay TPL insurance as well as STNK tax
The Indonesian government is preparing major changes in vehicle insurance regulations. Starting in 2025, all motorized vehicles in Indonesia will be required to have Third Party Liability (TPL) insurance. This step was taken to ensure maximum protection for all road users, including life protection through Jasa Raharja.
TPL insurance is designed to cover damage to goods caused by accidents. With this insurance, it is hoped that financial risks due to accidents can be reduced, as well as providing a sense of security for drivers and the general public.
In welcoming this policy, the Indonesian General Insurance Association (AAUI) proposed suggestions to make TPL insurance payments easier. They proposed that this insurance premium be paid at the same time as tax payments when extending the Vehicle Registration Certificate (STNK). This proposal is based on data showing that of the 120 million two-wheeled vehicles and 90 to 110 million four-wheeled vehicles in Indonesia, only around 60 percent regularly pay taxes.
AAUI Chairman, Budi Herawan, in his press statement said, “This concern arises because many vehicles have not paid tax. We believe that integrating TPL insurance payments with STNK tax payments will simplify this process.” According to Budi, the TPL insurance payment scheme will follow the payment model for the Mandatory Road Traffic Accident Fund Contribution (SWDKLLJ) which has been carried out through Samsat.
Budi added, “If TPL insurance premiums are collected individually, it will be difficult to manage them. “However, if it is done through Samsat, as is the case with SWDKLLJ which is managed by Jasa Raharja, the process will be more coordinated and efficient.”
Currently, the National Police Traffic Corps has not provided an official response regarding this proposal. However, it is hoped that the integration of TPL insurance payments with vehicle tax through Samsat can provide a practical solution and increase compliance with this regulation.
With this new policy, the hope is that every driver can obtain adequate protection and reduce the financial burden due to accident incidents. Make sure you monitor developments in information related to this policy so you can prepare yourself well ahead of 2025.
Huge Potential for Insurance in Indonesia: Gen Z and Millennials are the Main Targets
The insurance industry in Indonesia is facing major changes. According to the latest research from the global insurtech company, discovermarket, there is enormous potential for growth in this industry, especially among the millennial and Gen Z generations who are currently growing rapidly.
Although Indonesia is known to have a relatively low insurance penetration rate, the younger generation—in this case, Gen Z (27.94%) and millennials (25.87%)—make up almost 54% of the population. This generation is known as active digital users and has a lifestyle that is heavily influenced by technology.
CEO and Founder of discovermarket, Patrick Bühler, in his statement on Wednesday, July 31 2024, said, “Significant opportunities exist for insurance companies to expand their reach by exploiting the potential of this digitally savvy young generation.”
However, Patrick also noted a big challenge: the majority of Gen Z in Indonesia earn less than IDR 2.5 million per month. This condition limits their spending, including for insurance products, and impacts their purchasing power.
To overcome this challenge, discovermarket proposes an innovative solution, namely ’embedded insurance’. This concept involves integrating insurance products directly with users’ digital experiences, such as in e-commerce platforms, online transportation service applications, and fintech services.
Discovermarket, which is based in Switzerland and has regional headquarters in Singapore, recently launched an embedded insurance product in the Indonesian market. By serving more than 200 million customers across sectors, including hospitality, agriculture and telecommunications, discovermarket is committed to making insurance protection more accessible and affordable.
Patrick Bühler explains, “Embedded insurance enables businesses to improve their financial literacy, customer loyalty, revenue and reputation. This approach helps overcome accessibility barriers and increases public awareness of the importance of insurance protection.”
With this approach, it is hoped that insurance companies can more effectively reach the younger generation who are increasingly important in the Indonesian insurance market. This is a major step towards a more secure and sustainable future for all.
This news is brought to you by L&G Insurance Brokers, insurance broker experienced in Indonesia.
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