Liga Asuransi – Hello business people, let’s discuss developments and important events in the world of Indonesian insurance over the past week. It is important to remember that in the business world, insurance objects are not only limited to vehicles, health, life and property. The scope of insurance objects is much wider and covers almost all aspects of business processes. In this edition, we have selected 7 important news about insurance that you must know, including the latest topics regarding Tapera. If you found this article useful, feel free to share it with your colleagues so they can also gain the same insight.
Huge Potential! TUGU Insurance shares could rise up to 40%, are you ready to make money?
Shares of PT Asuransi Tugu Pratama Indonesia Tbk (TUGU) are increasingly attracting market players’ interest. A number of analysts, including from BCA Sekuritas, gave buy recommendations for the shares of this subsidiary of PT Pertamina.
Ryan Yani Santoso, BCA Sekuritas analyst, revealed that there were four main factors that supported the strengthening of TUGU shares. First, the growth potential of the insurance industry. Second, there is a minimum capital increase regulation which has the potential to trigger mergers and acquisitions (M&A). Third, TUGU’s ability to maintain a claims ratio that is lower than the industry average. Fourth, TUGU is consistent in distributing dividends to shareholders.
Penetration of non-life insurance in Indonesia is still low, around 0.39-0.48% of GDP, opening up great opportunities for growth in this sector. This figure is far below Singapore and Malaysia, which have reached more than 1%. In addition, TUGU premiums have also grown by 9.2% in recent years, with estimated asset growth of 9.1% in 2024, exceeding national GDP growth of only 5%.
Another catalyst that will boost TUGU’s performance is the OJK regulation regarding increasing minimum insurance capital in 2026 and 2028. This policy is predicted to trigger consolidation in the industry, where companies with strong capital, such as TUGU, will benefit. Small insurance companies are likely to merge through M&A actions to meet capital requirements.
Apart from that, the discourse on mandatory third party liability (TPL) insurance for motorized vehicles in 2025 is also an opportunity for TUGU. If the government forms an insurance consortium, TUGU is expected to take advantage of this opportunity optimally.
Ryan also highlighted that TUGU succeeded in maintaining a claims ratio of 36%, lower than the industry average of 44%. This shows TUGU’s carefulness in selecting customers, as well as its ability to map risks carefully.
Even though TUGU is a subsidiary of Pertamina, its performance does not only depend on the parent company. TUGU is actively looking for opportunities outside Pertamina, including by entering other BUMN segments, non-BUMN companies, and the retail segment.
TUGU is also known for being consistent in distributing dividends, with a payout ratio of 40%, which is an added value for investors. Ryan gave a recommendation to buy TUGU shares with a target price of IDR 1,600 per share in 12 months, potentially providing a return of 40.4%.
Apart from BCA Securities, analyst Shinhan Sekuritas, Kiwoom Sekuritas, and Trimegah Sekuritas also gave higher price targets, each in the range of IDR 2,050 to IDR 2,435 per share.
Source : https://investor.id/market/372563/saham-tugu-makin-dilirik-segini-target-harganya/1
Allianz Makes History with Biggest Sports Sponsorship Deal, Ready to Dominate Global Market
Allianz managed to make its name as the most active insurance brand and the largest spender in sports sponsorship in 2024. The global insurance company has just signed a US$400 million deal with the Olympic governing body, making it the largest deal in the history of the insurance industry, according to a GlobalData report.
Based on reports from Insurance Asia on 5 September 2024, this collaboration further strengthens Allianz’s position as a leader in the sports sponsorship sector, where they were involved in 52 sponsorship deals worldwide during the year.
In addition, football continues to dominate the insurance sector, both in terms of number of deals and total annual value. This year alone, there were 361 sponsorship deals recorded in the world of football worth around US$420.51 million per year.
Allianz’s increasingly strong presence on the global sporting scene not only expands its brand influence, but also underscores its commitment to supporting various sports around the world.
Easier! Zurich & Indosat Collaboration, Direct Insurance Access from the App
PT Zurich Asuransi Indonesia Tbk (Zurich) and Indosat Ooredoo Hutchison (Indosat or IOH) have entered into a strategic partnership to combine telecommunications and insurance services in one application. This collaboration allows more than 100 million Indosat users to access various insurance products directly through the myIM3 and bima+ platforms.
According to reports from Insurance Asia on September 5 2024, Zurich will provide insurance products such as postpaid bill protection and travel insurance. This service includes reimbursement for costs related to flight cancellations, lost baggage, and emergency medical needs.
In the future, Zurich also plans to offer additional insurance products, such as cash insurance for hospitals and cracked cell phone screen protection insurance, to provide more affordable and comprehensive protection options.
As part of this partnership, Indosat also launched the Free Postpaid Bill Protection program for postpaid customers. This program provides protection against serious health risks when purchasing or renewing a service plan.
This initiative reflects Indonesia’s spirit of mutual cooperation, where Zurich and Indosat are committed to providing protection solutions tailored to the specific needs of their customers.
Source : https://www.antaranews.com/berita/4304863/indosat-gandeng-zurich-hadirkan-asuransi-terintegrasi
Bright Prospects! Marine Hull Insurance is Increasingly Attracted, Jasindo’s Revenue Skyrockets 41%
The prospects for the Marine Hull insurance business are projected to be very promising until the end of this year, in line with increasing economic activity and maritime trade volume which opens up opportunities for the emergence of new insureds.
Marine Hull Insurance, or insurance framework boat, protecting ships, engines and equipment from various risks, such as damage due to bad weather, collisions, grounding, sinking and other risks during operations at sea.
Jasindo Insurance Company Secretary, Brellian Gema, in his official statement on Wednesday (4/9/2024) said that, although the prospects are bright, there are several risk factors that need to be watched out for, including price fluctuations in the shipping sector, potential natural disasters, and international geopolitical conditions. could impact the global economy.
Jasindo, which has operated for more than 50 years in the general insurance sector, recorded positive performance in the Marine Hull insurance line with gross premiums reaching IDR 130.01 billion in semester I-2024. This figure shows an increase of 41.93% compared to the same period the previous year.
Meanwhile, Jasindo also paid a claim of IDR 5.7 billion to PT Putra Marindo Prima for the Baiduri Barge 27259, which is used to transport materials and coal in the East Kalimantan and North Kalimantan regions. This ship has been insured by PT Putra Marindo Prima since 2011 through PT Asuransi Jasindo RO Balikpapan as an anticipation of operational risks.
Brellian emphasized that payment of claims according to the insured value is proof of Jasindo’s commitment to implementing the principles of Good Corporate Governance (GCG) and providing the best service for customers.
Source : https://investor.id/finance/372393/prospek-asuransi-kerangka-kapal-di-ri-sangat-menjanjikan
Great! BRI Insurance Named the 7 Most Popular Brands in 2024, Check Out Their Achievements
PT BRI Asuransi Indonesia (BRINS) has once again recorded a brilliant achievement by winning an award 7 Most Popular Brand Of The Year 2024 for the Finance category (General Insurance). This award is proof of the trust of various parties in the performance and innovation that BRINS continues to demonstrate.
BRI Insurance Business Director, Recky Plangiten, expressed his gratitude and thanks for the award. According to him, this achievement is a motivation for BRINS to continue to provide the best service and present various innovations that suit customer needs.
This award was given as appreciation for BRINS’ financial performance, product innovation and contribution to national economic growth in the general insurance industry. As part of the BRI Group, BRINS continues to demonstrate brilliant performance in line with its vision of being a reliable partner in protection solutions.
Effective Strategy to Face the Continuously Soaring Education Costs: Smart Solutions with Children’s Education Insurance
Children’s Education Insurance is a financial product specifically designed to help parents prepare for their children’s future education costs, combining elements of protection and investment. The Financial Services Authority (OJK) notes that inflation in education costs can reach 10-15% per year, making this insurance a smart solution for families.
The cost of education is getting higher every year making Children’s Education Insurance increasingly important. This product not only offers long-term financial protection, but also provides assurance that the child’s education will remain secure even if unexpected risks occur for parents.
There are various types of Children’s Education Insurance, each with its own advantages. Therefore, it is important for parents to choose products that suit the family’s financial needs. To maximize the benefits, steps such as calculating education costs, evaluating financial capabilities, choosing a trusted insurance company, and researching insurance policies must be carried out carefully.
There are two main types of Child Education Insurance in Indonesia: Dual Purpose Education Insurance (which combines life insurance with money market instruments) and Unit Link Education Insurance (which combines life insurance with investment products). Each type offers a different solution, both in terms of protection and potential returns.
Apart from Children’s Education Insurance, there are also several other savings strategies that can be used to prepare for education costs, such as conventional savings, education savings, deposits, mutual funds, and gold investment. Combining these strategies can help parents be better prepared to face education cost inflation and ensure a more secure future for their children.
Health Insurance Claims Soar 38%! BNI Life and AAJI Reveal Shocking Facts
PT BNI Life Insurance (BNI Life) reported an increase in total company health insurance claims of 38% in Semester I-2024 compared to the same period last year. Acting President Director of BNI Life, Neny Asriany, stated that the health claims paid by the company during that period reached IDR 281 billion.
To control the increase in claims, BNI Life implements various strategies such as a strict risk selection process, regular evaluation of premiums, and support for customers through health programs such as healthtalk, wellness programs, and the use of telemedicine. The company also plans to refocus its health insurance business to be more selective in choosing customers and strengthen claims management.
Neny estimates that health insurance claims at BNI Life could continue to increase in line with climate uncertainty and rising medical costs, which are factors driving the increase in claims.
Meanwhile, Freddy Thamrin, Chair of the Literacy and Consumer Protection Division of the Indonesian Life Insurance Association (AAJI), said that the total health claims for the life insurance industry in Semester I-2024 rose 26%, reaching IDR 11.83 trillion. Individual health claims increased 29.3% to IDR 7.62 trillion, while group health claims rose 20.3% to IDR 4.21 trillion.
Freddy added that the ratio of health insurance claims to premium income reached 105.7%, indicating that the number of claims exceeded premium income. This puts pressure on the financial condition of insurance companies. Continuously increasing medical inflation also poses a significant challenge for the life insurance industry, which must work together with various parties, including the OJK and the Ministry of Health, to find solutions.
This news is brought to you by L&G Insurance Brokers, insurance broker experienced in Indonesia.
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