Liga Asuransi – In the world of insurance, accurate and up-to-date information is the key for customers to make the right decisions. From the surge in unit linked surrender claims which reached fantastic numbers to the importance of vehicle insurance to protect cars from flooding, the dynamics of the insurance industry continue to be in the spotlight. This article will discuss the latest news about insurance, starting from the reasons behind the increase in unit linked claims, the importance of vehicle insurance protection in the rainy season, to insurance protection for gold and precious metals. By understanding this information, you can be wiser in managing financial risks and protecting your valuable assets.
Revealed! The reason behind the large number of linked unit surrender claims, is it true that customers are starting to run out of money?
The life insurance industry is back in the spotlight! The latest data from the Indonesian Life Insurance Association (AAJI) reveals that surrender claims or withdrawals from insurance policies linked to investment (PAYDI) aka unit linked reached a fantastic figure, namely IDR 77.15 trillion throughout 2024. Interestingly, as much as 74.5% of the total surrender claims came from unit linked products. So, what actually happened? Are customers starting to run out of money, or is there another bigger factor?
The Still Weak Purchasing Power Is The Main Cause
AAJI’s Head of Product, Risk Management and GCG, Fauzi Arfan, explained that the increase in unit linked surrender claims was triggered by people’s purchasing power not yet fully recovering. This is a challenge in marketing unit linked products, considering that the premiums that must be paid tend to be higher than traditional insurance, due to investment management costs.
“Many customers choose to surrender their policies to meet urgent needs, such as education costs or other financial needs,” said Fauzi in his statement on Thursday (13/3/2025).
Lack of Customer Understanding is Also a Major Factor
Not only a matter of purchasing power, another factor that has contributed to the increase in unit linked surrender claims is the lack of customer understanding regarding the characteristics of this product. Many people think unit linked is a short-term investment instrument, even though this product is designed for long-term benefits.
“Even though surrender claims have increased, this does not mean that trust in unit linked has decreased drastically. What is needed is more intensive education so that people understand how PAYDI works better,” he added.
Linked Units Still Have Hope?
Even though it experienced a contraction of 11.5% on an annual basis with total premiums falling to IDR 75.03 trillion at the end of 2024, Fauzi remains optimistic that unit linked still has a bright future. There are three factors that support this optimism:
- New Regulations – The new policy makes unit linked marketing more transparent and protects customers.
- Increasing Financial Literacy – People are increasingly aware of the importance of long-term financial protection.
- Product Innovation – Insurance companies are starting to offer unit linked with more efficient costs and more flexible features according to customer needs.
“Purchasing power challenges do exist, but with innovation and a more flexible approach, PAYDI can still develop. The important thing is, this product must be made more attractive and in line with market needs,” concluded Fauzi.
So, is it time for you to reconsider investing in unit linked units? Make sure you fully understand the benefits and risks before making big decisions!
A car submerged in floodwater can burst your pockets, here’s how to protect it!
The floods that hit Bekasi in the last few days not only damaged houses and infrastructure, but also caused many vehicle owners to suffer major losses. Damage resulting from a vehicle submerged in water can be very serious, especially to the engine and electrical system, which can cost tens of millions of rupiah to repair. Therefore, having vehicle insurance is an important solution to protect yourself from unexpected financial risks.
Why is Car Insurance Important in Flood Season?
Co-Founder of the Lifepal marketplace, Benny Fajarai, highlighted that Indonesia, as a country prone to natural disasters, should increase awareness of the importance of insurance.
“Indonesia is in the Ring of Fire area, which means we face a high risk of natural disasters such as earthquakes, volcanic eruptions and floods. In the midst of this risk, insurance should be the main protection for owners of valuable assets such as private vehicles,” said Benny in his official statement.
Car insurance with protection against natural disasters is very helpful in easing the financial burden on vehicle owners affected by flooding. Types of protection to choose from include:
- Asuransi All Risk (Comprehensive) – Covers both minor and major damage due to flooding, including machinery and electrical systems damaged due to being submerged in water.
- Total Loss Only (TLO) Insurance – Provides protection if the vehicle suffers serious damage with a loss value of 75% or more. This policy is suitable for those who want a more affordable premium but still get protection from major risks.
Impact of Flooding on Vehicles and Handling Standards
When a vehicle is submerged in floodwater, some of the parts most susceptible to damage include:
- Machines and electrical systems
- Transmission and fuel system
- Vehicle interior
- Brake system and car body
Insurance companies usually have handling standards according to official workshop procedures. If the water only reaches the floor of the vehicle, drying and checking the engine and electricity are usually carried out. However, if the water has reached the roof, the inspection will be more in-depth including dismantling the electrical system.
Some insurance policies also offer additional benefits such as Emergency Roadside Assistance (ERA) which includes evacuation services for vehicles affected by flooding. This benefit is very helpful because vehicle towing costs can be covered up to 0.5% of the insured price or more, depending on the insurance company’s policy.
Protect Your Vehicle Before It’s Too Late!
The floods that occurred in Bekasi are a warning for all vehicle owners to be more alert to the risk of natural disasters. Choosing the right car insurance can protect valuable assets while providing peace of mind when facing emergency situations.
Don’t wait until your vehicle is badly damaged and repair costs are exorbitant! Make sure your vehicle is protected with an appropriate policy to keep it safe from the threat of flooding and other risks.
Source: https://www.medcom.id/otomotif/mobil/zNAR192b-pentingnya-asuransi-mobil-untuk-melindungi-dari-banjir
Gold & Precious Metals Are Now Protected by Insurance, Here Are the Complete Rules!
The bullion industry in Indonesia is now increasingly protected with insurance coverage that covers various risks, both in the storage and delivery of gold and precious metals. The Financial Services Authority (OJK) ensures that bullion businesses have received insurance protection support specifically designed to safeguard this valuable asset from potential losses.
Insurance Coverage for Bullion Businesses
Chief Executive of the OJK Insurance, Guarantee and Pension Fund Supervision, Ogi Prastomiyono, revealed that insurance products for the bullion industry are available in several forms. One of them is protection for gold and precious metals that are stored in a safe place (cash in safe) as well as insurance for assets that are in transit (cash in transit). “This insurance product is available in Indonesia and provides protection for gold and precious metals both stored and in transit,” said Ogi in a written statement on Thursday (13/3/2025).
Apart from that, there is also liability insurance which is designed to protect gold owners from the risk of theft or robbery of their storage place. This provides extra security for those involved in the precious metals business.
Gold Bank Officially Launched, Bullion Industry Gets Stronger
This protective measure for the bullion business is in line with the launch of the Gold Bank or bullion bank by President Prabowo Subianto on February 26 2025. The Gold Bank was established with the aim of strengthening the gold trading ecosystem, encouraging industrial downstreaming, and expanding access to financing for gold business actors in Indonesia.
The formation of the Gold Bank is based on the Financial Sector Development and Strengthening Law (UU P2SK) and Financial Services Authority Regulation (POJK) Number 17/2024. This regulation stipulates that only financial service institutions whose main business is in the field of financing are allowed to run a bullion business. However, these regulations do not apply to Rural Banks (BPR) and microfinance institutions.
For commercial banks wishing to get involved in the bullion business, there is a minimum core capital requirement of IDR 14 trillion. If these requirements are met, banks are also allowed to run bullion businesses through sharia business units (UUS). However, financial institutions that focus solely on gold custody are exempt from these capital requirements.
Pegadaian & BSI Become Major Players in the Bullion Industry
So far, OJK has given permission to PT Pegadaian and PT Bank Syariah Indonesia (BSI) to carry out Bullion Business Activities (KUB). These activities include gold savings services, gold-based financing, trading and gold custody.
Pegadaian itself is recorded as having managed a gold deposit balance of 31,604 kilograms. Apart from that, gold deposits from various corporations reached 988 kilograms, while distribution of gold-based working capital loans reached 20 kilograms.
OJK Prepares Bullion Roadmap to Boost National Economy
To further strengthen the bullion ecosystem in Indonesia, OJK is currently preparing a Bullion Business Activity Roadmap (KUBL) which is scheduled for completion in August 2025. The preparation process involves various stakeholders through discussion forums to formulate strategies and regulations that are in line with industry developments.
With the existence of a gold bank and insurance protection for the bullion business, Indonesia is predicted to experience a significant economic impact. OJK estimates that the existence of a gold bank can increase Gross Domestic Product (GDP) by up to IDR 245 trillion, attract investment of IDR 47.4 trillion, and encourage money circulation to reach IDR 156 trillion.
With an increasingly mature ecosystem and stronger insurance protection, the bullion industry in Indonesia is poised to grow rapidly and provide major benefits to the national economy.
Insurance Mergers in Asia-Pacific Drop 25%! Investors Starting to Look at New Sectors?
Merger and acquisition (M&A) activity in the Asia-Pacific insurance sector will experience a drastic decline in 2024, with figures falling by 25% compared to the previous year. Annual report Insurance Growth Report from Clyde & Co released by Insurance Asia on Friday, March 14 2025, shows that insurance companies are now preferring organic growth strategies by utilizing data analytics amidst increasing geopolitical uncertainty.
Lowest in 16 Years, What Happened?
Globally, M&A transactions in the insurance sector have slumped to their lowest point in 16 years, with only 204 deals completed in 2024. This figure is down sharply from 346 transactions in 2023, making it the lowest since this report was first published in 2009.
Some of the main factors that suppress M&A activity include:
- High interest rates, which makes acquisition costs even more expensive.
- Geopolitical instability, which creates uncertainty in business expansion.
- Increasingly stringent regulatory oversight, which limits the insurance company’s transaction flexibility.
Middle East Region Continues to Progress, M&A in Other Sectors Actually Increases!
Even though the Asia-Pacific and global markets are experiencing a slowdown, the Middle East region is still showing a strong consolidation trend. Additionally, amidst weakening traditional M&A activity, the sector Managing General Agent (MGA) actually experienced a surge in investment. Many companies in the US, Europe and the Middle East are starting to shift their capital to this sector as a measure to survive amidst uncertain markets.
New Hope in 2025: US Becomes the Main Mover?
While 2024 looks bleak for M&A in the insurance sector, the outlook for 2025 looks brighter. The US market is predicted to be the main engine of the M&A revival, driven by:
- Deregulation policy, which gives companies more freedom to expand.
- Decrease in capital costs, which makes the acquisition even more attractive.
- Interest of foreign investors, which is getting bigger for the market Excess & Surplus in the US.
- Purchasing power of US insurance companies, which is stronger due to the high value of the dollar, so it can target undervalued assets abroad.
In addition, technological factors, especially in the field of cyber resilience, are predicted to play an important role in M&A strategies this year. Changes in increasingly fragmented global regulations can also be a challenge, but also open up opportunities for insurance companies that want to expand.
Conclusion: M&A Will Rise?
Although 2024 will be a challenging year for M&A activity in the insurance sector, there are high hopes that 2025 will bring positive changes. With various supporting factors such as deregulation in the US, a shift in investment focus to the MGA sector, as well as technological innovation in the insurance industry, opportunities for the revival of M&A are increasingly open.
Will 2025 be a turning point for M&A in the insurance sector? Or will global uncertainty still be a stumbling block? We are waiting for further developments!
Safe Homecoming Without Worry! Zurich Provides Free Insurance for 1,000 Homecomers
Approaching Eid 2025, PT Zurich Asuransi Indonesia Tbk (Zurich) is presenting a special program by providing free Personal Accident Insurance for 1,000 homecoming travelers! This program is available until April 25 2025, aiming to provide peace of mind for people who want to return to their hometowns.
President Director of Zurich, Edhi Tjahja Negara, emphasized that going home is not only a tradition, but also a precious moment for the family. “We want to ensure that travelers can travel safely and comfortably without worry through this personal accident insurance protection,” he said in Jakarta, Wednesday.
Surge in Travelers, Risk Increases!
This year, the Indonesian Ministry of Transportation estimates that more than 145 million people will travel home. With a significant increase in the number of travelers, the risk of accidents on land, sea and air routes has increased drastically. Data shows that the number of homecoming travelers will increase from 123.8 million in 2023 to 193.6 million in 2024.
Facing this condition, Zurich emphasizes three main reasons why insurance protection is very important for travelers:
- Congested Mode of Transportation – Overcrowding of vehicles and passengers has the potential to increase unexpected incidents.
- Financial Risk Due to Accidents – Accidents not only have an impact on individuals, but can also burden the family’s financial condition.
- Peace of Mind While Traveling – With insurance protection, travelers can travel more comfortably and calmly.
Exclusive Protection for Homecoming Travel
Free Personal Accident Insurance from Zurich provides benefits such as compensation due to accidents, medical treatment costs, funeral costs, and transportation costs. This protection applies throughout the homecoming travel period, from March 27 to April 9 2025.
For those who want to get this free insurance, just access the link https://bit.ly/AsuransiGratisZurich and register before the quota runs out!
Apart from that, Zurich also offers additional protection through other insurance products, such as Autocillin for vehicles with partner workshop services in various regions as well Zurich Travel Insurance, which protects against the risk of trip cancellation, lost baggage and other unforeseen events.
With this initiative, Zurich hopes to make a real contribution to improving the safety of homecoming travel and increasing public awareness of the importance of insurance protection. Don’t miss this opportunity, because safe travel is the key to happiness when meeting family in your hometown!
Source: https://www.antaranews.com/berita/4705129/zurich-berikan-asuransi-gratis-bagi-1000-pemudik
Insurance Industry Under Pressure! Implementation of PSAK 117 Has a Big Impact, Does OJK Consider It Fair?
The insurance industry is facing big challenges with the implementation of the Statement of Financial Accounting Standards (PSAK) 117 this year. This new accounting standard is predicted to add pressure to insurance companies, but the Financial Services Authority (OJK) considers that the impact is not significant and is part of a normal adjustment process.
PSAK 117: New Challenge or Opportunity?
Chief Executive of the OJK Insurance, Guarantee and Pension Fund Supervisor, Ogi Prastomiyono, stated that PSAK 117 brought major changes in the recording, recognition and disclosure of insurance company financial reports.
“The majority of insurance companies have made thorough preparations, including running parallel run reports every quarter throughout 2024,” said Ogi on Thursday (13/3).
Even though there are differences in the performance assessment method compared to the previous PSAK 62, OJK emphasized that this change will not have a significant impact on the stability of the insurance industry. The implementation of PSAK 117 has been officially implemented since January 1 2025, and companies are required to submit their first quarterly reports according to the new standard on May 15 2025.
As a supervisory step, OJK has established Standard Operational Procedures (SPO) to ensure insurance companies comply with PSAK 117 effectively and efficiently.
Medical Inflation Soars, OJK Strengthens Health Insurance Regulations
In addition to pressure from changing accounting standards, the insurance industry is also faced with surging medical inflation. Throughout 2024, medical inflation will reach 10.1 percent—much higher than general inflation which is only around 3 percent. Globally, medical inflation is at an average of 6.5 percent.
To overcome this impact, OJK plans to issue new regulations regarding health insurance through RSEOJK. This regulation will regulate formation Medical Advisory Board (MAB) in insurance companies, tasked with improving underwriting governance and evaluating health claims.
“MAB has an important role in detecting potential fraud, evaluating complex medical claims, and providing recommendations regarding the insured’s health risks,” explained Ogi. Furthermore, MAB will also work with health service providers to ensure quality of service for policy holders.
Interestingly, OJK has opened the option so that insurance companies do not need to have their own MAB, but can share this service collectively for cost and operational efficiency.
Insurance Industry Falls, Losses Reach IDR 10 Trillion!
Despite the various adjustments and strategies carried out, the general insurance industry experienced a drastic decline in performance in 2024. The recorded loss reached IDR 10.13 trillion, even though in the previous year this industry was still able to record a profit of IDR 7.8 trillion. The decline in profits of up to 197.8 percent was triggered by two main factors, namely increasing claims expenses and increasing premium reserves.
However, in the midst of these gloomy conditions, PT Great Eastern General Insurance Indonesia (GEGI) actually recorded positive growth. With total assets reaching IDR 1.5 trillion and gross premiums growing 18.7 percent annually to IDR 866 billion, this company still recorded a net profit of IDR 52 billion. GEGI’s success in maintaining profitability is supported by strong risk management, especially in controlling the loss ratio.
Conclusion: The Insurance Industry in Transition
2025 will be a transition period full of challenges for the insurance industry. The implementation of PSAK 117, a surge in medical inflation, as well as financial pressure due to increasing claims expenses are factors that influence the stability of this sector. However, insurance companies that are able to adapt to new regulations and strengthen risk management strategies are predicted to be able to survive and develop amidst uncertain conditions.
Is the insurance industry able to get through this difficult time? Or will regulatory pressure actually push insurance companies further into the abyss of deeper losses?
Do not take it wrong! Insurance is not for profit, but mandatory protection in the modern era
Insurance has a very important role in maintaining economic and financial stability in society. Not just individual protection, insurance also contributes greatly to the overall economic sector. Currently, various types of insurance are available to cover various aspects of life, from health, property, to other general protection.
Indonesia Financial Group (IFG) Senior Research Associate, Ibrahim Kholilul Rohman, emphasized that there are various insurance options available, such as work, life, property and motor vehicle insurance. Not only that, social insurance such as BPJS Health and BPJS Employment is also an important solution for the community to obtain adequate financial protection.
“Don’t be mistaken! Insurance is not an instrument for making a profit, but rather protection from risks that may occur. If you want to invest for profit, people are more suited to choosing shares, bonds or other financial instruments,” said Ibrahim at the STIH Adhyaksa National Seminar on Wednesday (12/3).
Furthermore, Ibrahim reminded that in choosing insurance, a person must adapt it to their financial conditions and needs. For example, for those who live in areas with low disaster risk, purchasing property insurance with broad coverage may not be necessary. Therefore, thorough research before purchasing a policy is very important.
From a macro perspective, the insurance sector contributes greatly to the Indonesian economy. In 2021, the total premium collected will reach IDR 174 trillion, while the total claims paid will be around IDR 21 trillion. Not only that, the insurance industry also plays a big role in the capital market, with total investment reaching IDR 600 trillion in 2020.
“Insurance not only protects individuals and companies, but is also the main pillar in maintaining the stability of the national financial system. “Therefore, public awareness about the importance of insurance must continue to be increased,” stressed Ibrahim.
With increasing public understanding of the benefits of insurance, it is hoped that more people will be aware of the importance of financial protection. Don’t regret it later because you think of insurance as just an additional expense, even though this is an investment in peace of mind in the future!
Looking for insurance products? Don’t waste your time and contact us now
HOTLINE L&G 24 JAM: 0811-8507-773 (CALL – WHATSAPP – SMS)
Website: lngrisk.co.id
Email: oktoyar.meli@lngrisk.co.id
—
