Liga Asuransi – In the world of industry and projects that are full of risks, protecting assets, responsibilities and operational continuity is something that cannot be ignored. Various risks such as heavy equipment damage, project delays, and legal obligations to third parties can have a major impact on business continuity. Therefore, understanding and choosing the right insurance solution is a strategic step for industry players. This article will discuss important aspects of insurance specifically designed for industrial and project sectors, and how these solutions can help manage risk more effectively.
OJK Encourages National Insurance Consortium! 3 Million Home Program to Free Meals Ready to Get Special Protection
The Financial Services Authority (OJK) is proposing the formation of a consortium from the national insurance industry to support and protect the government’s priority programs from various potential risks.
This was conveyed by the Chief Executive of the OJK Insurance, Guarantee and Pension Fund Supervision (PPDP), Ogi Prastomiyono, in a statement in Jakarta on Sunday.
Ogi explained that OJK is currently mapping all stages, from upstream to downstream, related to the implementation of the government’s flagship programs. The aim is to identify how the insurance industry can contribute to reducing risks that could hinder the smooth running of these programs.
For example, in the 3 million house construction program, OJK proposed the formation of a consortium consisting of life insurance, general insurance and reinsurance companies. This consortium will provide protection, for example against the risk of the debtor’s death which could lead to default, while general insurance will protect against the risk of fire, burglary and other risks.
Apart from that, Ogi said that the insurance industry could also play a role in the Free Nutritious Meal (MBG) program. This support covers the food production phase through agricultural insurance products, to protecting MBG beneficiaries from the risk of food poisoning through health insurance.
Not only that, credit insurance can help protect MBG food processing MSMEs from financing risks, while accident insurance can anticipate risks during food distribution.
According to Ogi, the national insurance industry is actually ready to take a big role in supporting these programs because the products needed are already available on the market. However, he emphasized the need for additional support from the government, both in the form of premium subsidies and special incentives, considering the massive scale of the program.
“All the products needed are actually available and the insurance industry is considered ready. Moreover, if the coverage is broad, the risks will be more diversified, making them more manageable. Now we just have to wait for the final scheme from the government,” said Ogi.
OJK Predicts Travel Insurance Exploding! Safe Holidays, Keep Your Wallet Comfortable!
The Financial Services Authority (OJK) is optimistic that travel insurance will have a bright future. OJK Chief Executive of Insurance, Guarantee and Pension Fund Supervision, Ogi Prastomiyono, stated that travel insurance — which is included in the personal accident and miscellaneous insurance category — is projected to experience a surge in premiums or contributions in line with the rapid growth of the tourism sector.
In the written answer sheet to the OJK Board of Commissioners Meeting on Friday (25/4), Ogi revealed that the tourism sector is estimated to contribute 4.6% to Gross Domestic Product (GDP) in 2025, and will continue to increase until it reaches 5% in 2029.
Ogi previously also emphasized the importance of having travel insurance when traveling. According to him, this product offers many benefits that tourists really need, such as repatriation services in case of illness while traveling, protection against lost luggage, theft and various other risks.
“These benefits are very relevant to society’s current needs,” explained Ogi.
Furthermore, he added that the ease of access to travel insurance is now increasing thanks to the presence of various online applications for purchasing transportation tickets and hotels. Many of them even offer travel insurance as part of a purchase package (bundling), making it easier for people to get protection when traveling.
For the record, travel insurance is listed in the miscellaneous line based on data from the Indonesian General Insurance Association (AAUI). In 2024, premium income for this category was recorded at IDR 4.25 trillion, an increase of 3.9% compared to the previous year.
Finally! AJB Bumiputera Disburses IDR 106 Billion to Pay Customer Claims! This is the Scheme!
Bumiputera 1912 Joint Life Insurance (AJB) management has begun to realize outstanding claims (OS Claims) payments to policy holders who have agreed to the Benefit Value Reduction (PNM) program. This payment is made on a pro-rata basis using excess collateral funds that have been disbursed from the Financial Services Authority (OJK) amounting to IDR 106.24 billion.
AJB Bumiputera 1912 Corporate Secretary, Hery Darmawansyah, explained that these funds were prioritized to pay off claims with a value of up to IDR 2 million first. Meanwhile, for claims above IDR 2 million, payments are made pro-rata to all policy holders who agree to the PNM program.
“Payment for OS Claims comes from excess guarantee funds worth IDR 106 billion, with priority to settle claims up to the full IDR 2 million, the rest is paid pro-rata,” said Hery on Monday (28/4/2025).
In an official statement, Secretary of the AJB Bumiputera 1912 Pending Claims Payment Task Force, Frizal, added that the funds would be used in one payment process.
As much as 70% of the funds, or around IDR 76.02 billion, were allocated to pay Individual Insurance (Asper) claims to approximately 101,250 policy holders. Meanwhile, the remaining 30% or around IDR 30.21 billion was used for Group Insurance (Askum) claims which covered 90 policy holders with a total of 7,297 participants.
Asper claim payments are divided into six levels (tiering). In the first tier, claims with a value of up to IDR 2 million are paid in full to 7,110 policy holders. Meanwhile, for claims in tiers two to six (value above IDR 2 million), payments are made in the amount of IDR 1 million on a pro-rata basis, as a reduction in AJB Bumiputera’s obligations and a form of solidarity between policy holders.
“Through this scheme, claims under IDR 2 million will be paid off, while claims above IDR 1 million will be paid pro-rata,” explained Frizal.
For Askum claims, payment methods vary depending on the type of product. For example, the student insurance program does not apply pro rata. As for credit life insurance products, payments are made through loan repayments at banks or cooperatives. For PKK products, payment is in installments, and for other Askum products, payment is prorated.
The payment process is scheduled to start Wednesday, March 26 2025. AJB Bumiputera management invites all policy holders to accept this payment as part of the company’s commitment in accordance with the Revised Financial Rehabilitation Plan (RPK) which has been approved by the OJK.
OJK has also given the green light to this prorated payment scheme, in accordance with the provisions in AJB Bumiputera’s latest RPK Plan 1912.
Management also expressed its appreciation and gratitude for the policyholders’ patience, and hoped that the entire process would run smoothly as planned.
“We invite all policy holders to support the smooth running of this process. Hopefully this claim payment process will be the beginning of opening new doors of fortune for all parties,” concluded Frizal.
Reinsurance Deficit Swells by IDR 12 Trillion! This is OJK’s move to save the insurance industry!
The reinsurance deficit in Indonesia has continued to swell in the last three years. Records from 2022 to 2024 show successive deficits of IDR 7.95 trillion, IDR 10.20 trillion, and soaring to IDR 12.10 trillion. Facing this condition, the Chief Executive of the Insurance, Guarantee and Pension Fund Supervision (PPDP) of the Financial Services Authority (OJK), Ogi Prastomiyono, believes that the national insurance industry needs to strengthen its capital.
Ogi emphasized that the main solution lies in market deepening efforts, namely by reaching new segments, not just increasing the existing market share. “Our focus is to explore new segments that have not previously been touched,” he said when met at the DPR RI Complex, Monday (28/4/2025).
He mentioned several examples of new segments, such as insurance to support President Prabowo’s priority programs, including the free nutritious meal program and the construction of 3 million houses.
Apart from that, Ogi also encourages the development of mandatory third party liability (TPL) insurance products, as part of market deepening efforts. “Products like this will increase the market base that has never existed before, that is our target,” he continued.
Ogi also explained that in the 3 million homes program, OJK has proposed the formation of an insurance consortium involving life insurance, general insurance and reinsurance companies. This consortium will provide protection against risks such as death which could potentially lead to payment failure, as well as property risks such as fire or burglary.
In the free nutritious food program, the insurance industry can play a role from the production stage through agricultural insurance, protection for MSME financing, accident insurance during food distribution, and insurance for the risk of food poisoning.
Ogi ensures that all insurance products needed to support this priority program are basically available on the market. The industry is also considered ready to implement it. However, in order scheme This is effective, government support in the form of premium subsidies or incentives is still very necessary.
“Currently OJK is mapping the entire process chain, from upstream to downstream, to see which parts can be used supported by the national insurance industry to protect the smooth running of government priority programs,” concluded Ogi.
Health Insurance Claim Ratio Drops Drastically! OJK Prepares New Regulations, Here’s the Leak!
In early 2025, the insurance industry managed to keep the health claims ratio under control, even well below the 100% threshold. Chief Executive of the OJK Insurance, Guarantee and Pension Fund Supervision (PPDP), Ogi Prastomiyono, explained that until February 2025, the ratio of health claims in the life insurance industry was recorded at 45.42%, while in the general insurance industry it was 35.29%. For comparison, last year this ratio jumped to past 100% in the life sector, and approached 100% in the general sector.
To ensure the stability of the health insurance ecosystem in the future, OJK is finalizing the Draft OJK Circular Letter (RSEOJK) regarding the Implementation of Health Insurance Products.
“The process of preparing the Health Insurance SEOJK is almost complete and is targeted to be published in the second quarter of 2025,” said Ogi in a written statement, quoted on Sunday (27/4/2025). In the future, insurance companies will be required to adapt their operations to this new regulation.
Ogi detailed that there are at least five main aspects regulated in RSEOJK This:
- Determine the criteria for companies that may market health insurance products.
- Requires the formation of a Medical Advisory Board (MAB) in insurance companies.
- Regulate the design of health insurance products to better suit market needs.
- Encourage the implementation of risk management, including the need to have an information technology system to detect potential fraud.
- Requires the provision of benefits coordination (Coordination of Benefits/CoB) features between commercial insurance providers and BPJS Health.
Ogi emphasized that the main aim of issuing this regulation is to improve the health insurance ecosystem, improve services to policyholders, and strengthen insurance company governance. “We hope that in the future there will be more effective coordination between BPJS Health and commercial health insurance,” he concluded.
US Tariff Policy Threatens the Indonesian Insurance Industry! This is a big impact to watch out for!
The Financial Services Authority (OJK) highlighted the potential risks of the trade tariff policy imposed by the United States (US) on the insurance industry in Indonesia. Chief Executive of the OJK Insurance, Guarantee and Pension Fund Supervision (PPDP), Ogi Prastomiyono, explained that a number of insurance lines, such as marine cargo, trade credit insurance, and health and life insurance, could be affected by these protectionist measures.
“The tariff policy implemented by the US has the potential to have a big impact, especially on insurance related to international trade and logistics,” said Ogi in a written statement, Friday (25/4/2025). He added that the marine cargo insurance line is one of the most vulnerable, because increasing tariffs can disrupt the global supply chain, resulting in delivery delays and potential damage to goods.
However, the Indonesian government is trying to reduce trade tensions by opening negotiation channels. The strategies taken include increasing imports of agricultural and technical products from the US and offering various fiscal and non-fiscal incentives. The hope is that this step can maintain the stability of trade volumes and support the growth of marine cargo insurance premiums.
OJK data shows that until the end of 2024, marine cargo insurance premiums will still grow positively by 3.29% on an annual basis. However, as of February 2025, there was a slight decline of 0.44% (yoy). Meanwhile, the increase in tariffs also has an impact on trade credit insurance, considering that pressure on export-import companies’ cash flows can increase the risk of default.
“Insurance companies need to review their risk profiles and tighten the underwriting process to minimize potential losses,” added Ogi. To strengthen the industry, OJK has regulated minimum equity for credit insurance through POJK Number 20 of 2023, namely IDR 250 billion for conventional general insurance and IDR 100 billion for sharia, as well as setting a minimum liquidity ratio of 150%.
Although the credit insurance claims ratio as of February 2025 was at 83.4%—still below the 100% threshold—this figure has increased from December 2024 which was recorded at 77.4%.
Apart from that, Ogi reminded that US tariff policies could also have an indirect effect on health and life insurance. Pressure on people’s purchasing power due to the increase in the cost of living can lead to increased claim costs and decreased demand for insurance products.
RI Economy Predicted to be Sluggish in 2025! Pension Funds and Insurance Are Threatened with Shake, Investors Must Be Alert!
The Financial Services Authority (OJK) revealed that the Indonesian economic slowdown which is predicted to occur in 2025 could put serious pressure on the pension fund sector and the insurance industry. Chief Executive of the OJK Insurance, Guarantee and Pension Fund Supervision (PPDP), Ogi Prastomiyono, highlighted the revision of economic growth projections by the Organization for Economic Co-operation and Development (OECD), from the previous 5.2% to only 4.9%. According to him, this decline will have real consequences for non-bank Financial Services Institutions (LJK).
Ogi explained that slowing economic growth could trigger a decline in investment returns, which would then weaken the ability of pension funds to fulfill long-term obligations to their participants. Meanwhile, the weakening of the capital market will have a direct impact on the performance of unit-linked insurance products, which in turn could increase the risk of customer withdrawals and increased claims.
Furthermore, it is also feared that the decline in people’s purchasing power will reduce interest in insurance products, especially investment-based ones. For this reason, OJK encourages insurance and pension fund industry players to be more careful in managing risks and intensify product innovation in order to maintain competitiveness amidst economic pressure.
Not only that, the multi-finance sector is also expected to be dragged down due to the less than enthusiastic economic outlook. Chairman of the Association of Indonesian Financing Companies (APPI), Suwandi Wiratno, said that the impact of global turmoil had worsened domestic conditions throughout 2024, and this was hampering the achievement of the multi-finance financing growth target which was originally targeted at 8%–10%. “The most optimistic could be 8%, maybe it’s only 6%,” he said.
Managing risks appropriately through appropriate insurance not only provides financial protection, but also maintains the stability and continuity of your project operations and industrial business. It is important to work with parties who understand the specific needs of this sector. This article is supported by L&G Insurance Broker, company insurance broker trusted in Indonesia which has special expertise in handling insurance needs for industry and projects. If you need appropriate, comprehensive insurance solutions and accompanied by experts, L&G Insurance Broker is ready to be your reliable partner.
