Liga Asuransi – In the midst of the ever-growing dynamics of the insurance industry, the involvement of insurance brokers in drafting regulations is becoming increasingly crucial. As those on the front lines of interactions with customers and insurance companies, insurance brokers have valuable insight into market needs and the challenges facing the industry. By actively engaging in regulation, insurance brokers can ensure that the resulting policies are not only relevant but also effective in supporting the healthy and sustainable growth of the industry. The following is a summary of the latest news that reflects the vital role of the insurance industry in Indonesia, as well as the challenges and opportunities that lie ahead.
Astra Insurance Records Profit Growth of IDR 1.08 trillion amidst Claim Challenges
PT Asuransi Astra Buana (Astra Insurance) recorded an extraordinary achievement until 30 September 2024 with profit after tax reaching IDR 1.08 trillion. This is growth of 8.5% year on year (yoy) compared to the same period last year. Astra Insurance’s latest financial report shows that this profit growth was driven by an increase in premium income which reached IDR 5.34 trillion, an increase of 18.8% compared to IDR 4.50 trillion in the January-September 2023 period.
However, this increase in profits was also accompanied by a surge in claims. In the first nine months of 2024, Astra Insurance claims expenses increased 25.6% yoy to IDR 2.74 trillion, compared to IDR 2.18 trillion in the previous year. Responding to this situation, Laurentius Iwan Pranoto, Head of PR Marcomm and Event Asuransi Astra, explained that the company continues to implement the strategy triple P Roadmap, namely Portfolio Roadmap, People Roadmap, and Public Contribution Roadmap, to maintain profit growth amidst increasing claims.
Portfolio Diversification for Sustainability
In the Portfolio Roadmap, Astra Insurance is actively diversifying its portfolio in three main business lines: motor vehicle, commercial and health insurance. “We manage the portfolio in terms of revenue and profit in all segments,” said Iwan. With this approach, Astra Insurance strives to not only increase revenue, but also improve underwriting results through careful risk mitigation.
Investment in Human Resources
The second strategy, People Roadmap, emphasizes the importance of human resource development. Astra Insurance proactively improves the capabilities of its employees through skill development and certification programs. “We want to ensure that our team is always ready to face the challenges of an ever-growing industry,” added Iwan.
Contribution to Sustainable Development
Through the Public Contribution Roadmap, Astra Insurance is committed to contributing to sustainable development goals. The company strives to always adapt to the latest developments and implement strategies that have been proven effective while implementing new innovations.
“Our efforts so far show that with the right strategy and strong commitment, Astra Insurance can continue to grow and develop despite the existing challenges,” concluded Iwan.
With these strategic steps, Astra Insurance has not only succeeded in maintaining its performance, but also shows that innovation and adaptation are the main keys in a competitive insurance industry.
Young Generation Needs to Understand Insurance: Askrindo’s Efforts to Increase Financial Literacy and Inclusion
The 2024 National Survey of Financial Literacy and Inclusion (SNLIK) provides an interesting picture of the condition of insurance literacy in Indonesia. The insurance literacy index recorded a significant increase to 76.25%, rising from 31.72% in 2022. However, behind this achievement, there is a big challenge: the insurance inclusion index actually decreased to 12.21% from 16.63% last year . This phenomenon shows that there is a gap between people’s understanding of insurance and their desire to buy insurance products.
In an effort to celebrate Insurance Day and Financial Inclusion Month, PT Asuransi Kredit Indonesia (Askrindo) is committed to increasing insurance penetration among the younger generation, especially individuals aged 18–25 years. Through a talk show entitled “Young Generation Understands Insurance”, Askrindo tries to reach and educate the younger generation about the importance of insurance protection.
The President Director of PT Askrindo, Fankar Umran, emphasized the importance of awareness in managing finances from an early age. “Many young people, especially students, do not yet understand how to manage their finances well, including choosing insurance as a protection option. “We want to help them realize the importance of protecting themselves and their assets from various risks,” said Fankar.
According to SNLIK 2024, the young generation aged 18–25 years has a financial literacy level of 70% and financial inclusion of 79%. Tania Putri, a Certified Financial Planner, emphasized that although the younger generation is adaptive to current developments, their financial literacy must continue to be improved to avoid fraud and illegal practices. “Good financial management starts with self-control, which is the key to success in financial management,” added Tania.
Yudhi Ferraro, Head of Research and Product Development Division at PT Askrindo, highlighted the young generation’s lack of understanding about insurance. In fact, insurance is very important to protect yourself from everyday risks. “Many risks, such as laptop damage or a vehicle breaking down, can be managed with insurance. “Now there are many insurance products with affordable premiums, equivalent to the price of daily snacks,” said Yudhi.
Askrindo also provides education about People’s Business Credit Guarantee (KUR) to students who own businesses. “With business protection or micro insurance, students can minimize the risk of possible losses,” concluded Yudhi.
Through this initiative, Askrindo seeks not only to increase insurance literacy, but also to strengthen financial inclusion among the younger generation, equipping them with the knowledge necessary to make wise financial decisions.
PT Great Eastern General Insurance Indonesia (GEGI) Targets Equity of IDR 1 Trillion by 2028 Without New Investors
PT Great Eastern General Insurance Indonesia (GEGI) is determined to achieve a minimum equity target of IDR 1 trillion by 2028. In this effort, GEGI will inject additional capital which will come directly from shareholders, without involving new strategic investors. GEGI President Director, Aziz Adam Sattar, stated that this achievement would be carried out with strong commitment from shareholders.
Currently, GEGI’s equity position has reached IDR 550 billion, which meets the minimum requirements stipulated in POJK 23/2023 for 2026. Based on regulations, insurance companies are required to have equity of IDR 250 billion in 2026 and IDR 500 billion in 2028 for the Equity Based Insurance Company Group (KPPE ) I. Meanwhile, for KPPE II, the minimum equity required is IDR 1 trillion. With the achievements that have been achieved, GEGI is optimistic that it can fulfill these requirements and enter KPPE II.
“Our shareholders are fully committed to meeting the equity requirement of IDR 1 trillion, so that GEGI can continue to grow and provide comprehensive insurance protection solutions,” said Aziz.
In the long term plan, GEGI will not collaborate with other companies to expand its operations. Becoming a KPPE II insurance company will allow GEGI to reach a wider market with superior products. Meanwhile, their main focus remains on the individual insurance, retail and micro, small and medium enterprises (MSMEs) sectors.
GEGI Marketing Director, Linggawati Tok, added that the company managed to record premium income of IDR 643 billion as of September 2024, experiencing growth of 28% compared to last year. Property Insurance, Marine Cargo, engineering, liability and affinity businesses provide the largest contribution to premium income.
With high optimism, GEGI is targeting premium income of up to IDR 760 billion by the end of this year, and around IDR 930 billion next year. Programs that support people’s lifestyles, such as travel insurance and personal accident insurance, are an important part of GEGI’s future growth strategy.
With these strategic steps, GEGI is ready to contribute more to the Indonesian insurance industry, while providing better protection for the community.
Lifepal Optimistic about the Growth of the Insurance Sector in the Era of the Red and White Cabinet
The largest insurance marketplace in Indonesia, Lifepal, shows high optimism regarding the growth of the insurance sector under the new government led by the Red and White Cabinet. Lifepal Co-Founder, Benny Fajarai, highlighted the importance of the Ministry of Communications and Digital which was formed by the new government. This ministry is expected to accelerate digital transformation in Indonesia.
By focusing on developing communications and digitalization, this ministry will facilitate the development of digital infrastructure, including stronger and wider internet networks, especially in remote areas. “Better access will enable insurance companies to reach more people, thereby supporting increased insurance penetration,” said Benny.
However, Benny reminded that many Indonesians are still not aware of the benefits of insurance in managing financial risks. “With improved internet access, we can reach more potential customers and provide education about the insurance they need. This is an important step to increase awareness about the need for financial protection in the digital era,” he explained.
Furthermore, the growth of people’s purchasing power is also considered an important factor that can encourage the insurance industry. Bank Indonesia estimates that national economic growth could reach 5.5% in 2025, thanks to political stability and pro-people fiscal policies. This is predicted to expand the insurance market, including health and vehicle insurance.
As a leading insurance marketplace with millions of registered users, Lifepal is in a strategic position to bridge people with insurance products that are relevant to their needs. Lifepal is committed to supporting the government’s agenda in increasing financial inclusion through an easily accessible platform and offering a wide choice of insurance products, from health to vehicles.
Lifepal technology allows consumers to carry out various processes online, from consultations to policy management. This allows customers to achieve the best results more quickly and efficiently. Benny hopes that Lifepal can contribute to helping Indonesian people understand the importance of insurance as part of their financial planning. “With the presence of Lifepal, people now have easier and more transparent access to choose the best insurance product according to their needs, supporting the new government’s vision to strengthen a more inclusive and sustainable economy,” he added.
With a commitment to providing the best service, Lifepal is ready to help customers find the insurance product that best suits their needs effectively, quickly and affordably.
Source : https://www.indotelko.com/read/1730326129/pemerintahan-baru-dongkrak-pertumbuhan-industri-asuransi
Asuransi Jasa Tania Tbk (ASJT) Experiences a Loss of IDR 6.66 billion Even though Premium Income Increases
PT Asuransi Jasa Tania Tbk (ASJT) faced financial challenges this year, recording a loss of IDR 6.66 billion in the first nine months of 2024. In the financial report released on Tuesday (29/10), ASJT experienced a significant decline compared to profit of IDR 201.65 million recorded in the same period last year.
Even though this insurance company recorded an increase in gross premium income, this was not enough to avoid losses. In the third quarter of 2024, ASJT’s gross premium income increased 10.75% year on year (YoY) to IDR 164.35 billion, compared to IDR 148.41 billion in the previous year. However, challenges emerged from the increase in reinsurance premium expenses which jumped 32.64%, to IDR 65.38 billion from IDR 49.29 billion.
This increase in expenses had a direct impact on ASJT’s underwriting income, which only grew slightly by 0.94% YoY to IDR 87.63 billion, while underwriting results decreased by 5%, down to IDR 31.90 billion from IDR 33.58 billion.
Apart from that, ASJT also experienced a fairly high increase in operating expenses, reaching 14.73% on an annual basis, from IDR 40.23 billion to IDR 46.15 billion. This increase is one of the causes of the company’s unsatisfactory performance.
However, amidst the challenges faced, ASJT’s total equity as of September 30 2024 was recorded at IDR 318.21 billion, although it experienced a decrease from IDR 324.37 billion at the end of last year. Total liabilities also decreased to IDR 187.04 billion from IDR 174.34 billion.
Encouragingly, this company is still showing capital strength with Risk Based Capital (RBC) at the level of 659.30% in the third quarter of 2024, far exceeding the minimum threshold of 120%. Despite facing losses, ASJT remains optimistic with strong capital and the right strategy to restore performance in the future.
Strengthening the Insurance Ecosystem, Insurance Brokers Need to Be Involved in Regulation
In an effort to strengthen the insurance ecosystem in Indonesia, Chief Expert of Indonesian Insurance and Reinsurance Brokers (APARI), Bambang Suseno, emphasized the importance of the active role of insurance brokers in the process of formulating regulations by the Financial Services Authority (OJK). In a discussion held on October 22 2024, Bambang highlighted that the involvement of insurance brokers in the formation of regulations is very important to accommodate the needs and concerns that exist in the industry.
Bambang noted that in the discussion of POJK 20/2023 regarding Products Linked to Credit Insurance, the insurance broker sector was not involved. He emphasized that insurance brokers, as part of the supporting professions in this sector, need to be included in the regulation making process. “The involvement of insurance brokers is as important as other business actors in the insurance ecosystem, so that practitioners’ concerns can be taken into account,” explained Bambang in his upload on LinkedIn.
Furthermore, Bambang emphasized the need for regulatory support for Carbon Credit Insurance, which can support the government’s efforts to reduce carbon emissions. With a trade value reaching IDR 8,000 trillion, this sector requires serious attention so that it can contribute more effectively.
Bambang also voiced the need for harmonization of regulations and supervision in the financial services sector, especially regarding fit and proper test provisions for directors in the industry. He suggested that this procedure be carried out by preparing a portfolio of requirements first, so that directors can have the appropriate understanding and expertise before taking the fit and proper test.
“With the harmonization of provisions for directors undergoing a fit and proper test, it is hoped that they will complete the portfolio of requirements first before taking the due diligence,” added Bambang. He hopes that this provision will not trigger a request from the board of directors for APARI to organize an accelerated portfolio fulfillment program just because they have passed the feasibility test.
With these steps, Bambang hopes that the insurance industry in Indonesia can better respond to existing changes and challenges, as well as provide optimal protection for the community.
STIMRA Chairman Reminds of the Impact of Eliminating Farmers’ and Fishermen’s Debt on the Credit Insurance Industry
President Prabowo’s plan to write off bank debt for six million farmers and fishermen has received great attention, especially from the credit insurance industry and guarantee companies. Chairman of the College of Risk Management and Insurance (STIMRA), Abitani Taim, stated that before implementing this policy, it was important to clearly understand which debt would be written off. Does the debt only include bad debts or all outstanding debts from fishermen and farmers?
Abitani reminded that if only bad credit is removed, an important question will arise: what will happen to the credit insurance claims that have been submitted? “Will the bank be able to recover from the claim?” Abitani asked. In this context, insurance and guarantee companies need to develop appropriate regulations to prevent negative impacts on their finances due to the inability to collect security deposits from bad debts.
He also highlighted the need for companies to evaluate guarantee or credit insurance fees by considering the risks faced as a result of writing off this debt. According to Abitani, the insurance and guarantee industry is currently in a quite challenging position, with a large portfolio and long guarantee periods. “Strict OJK regulations also limit the guarantees or benefits that can be provided by insurance companies, both general and life,” he added.
Hashim Djojohadikusumo, President Prabowo’s younger brother, revealed that the Presidential Decree regarding debt whitening is currently in the preparation stage by the Minister of Law, Supratman Andi Atgas. “I hope that next week, he will sign the Presidential Decree on whitening for 5-6 million people, so that they can start a new life,” explained Hashim at an event at the Indonesian Chamber of Commerce and Industry Tower on Wednesday (23/10/2024).
With a potential broad impact on the credit insurance and guarantee industry, this policy not only focuses on debt whitening, but also challenges the sector to adapt and ensure the sustainability of its operations in the future.
This news is presented by L&G Insurance Broker, insurance broker experienced in Indonesia.
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