Liga Asuransi – The insurance industry continues to move dynamically as economic challenges, new regulations and the threat of health risks become increasingly real. In this edition, we present seven of the most updated and complete news from the world of Indonesian insurance—starting from the surge in company equity, profit growth strategies, to the spotlight on the national reinsurance deficit. In the midst of rising medical costs and the increasing threat of critical illness, Sharia Insurance has emerged as a strategic solution to protect people’s wealth and financial resilience. This article is an important reference for those of you who want to comprehensively understand the direction of development of the insurance industry.
PT Asuransi Bintang Tbk (ASBI) Financial Report According to PSAK 117, Equity Soars to IDR 417.8 Billion! Investors Check These Important Facts!
PT Asuransi Bintang Tbk (ASBI) announced its success in submitting financial reports for quarter I/2025 as well as restatement of financial reports for quarter I/2024, financial position reports as of December 2024, and December 2023 in accordance with the latest standard, PSAK 117. This is a form of compliance with Article 271 of Law no. 4 of 2023 concerning Development and Strengthening of the Financial Sector (UU P2SK), as well as Articles 2, 7 and 8 POJK No. 20/POJK.04/2021 regarding the preparation of securities company financial reports.
ASBI has submitted all these reports on time to the Indonesian Stock Exchange (BEI). Based on paragraph PSAK 117.C04/IFRS 17.C4, the transition to PSAK 117 is carried out through derecognition of all assets and liabilities according to the old PSAK 104, followed by new recognition according to PSAK 117. The resulting differences are recorded directly in equity on the transition date.
In accordance with regulations, this transition affects the financial reports for the current year and also the previous period, so ASBI is obliged to carry out a restatement for the financial reports for December 31 2024, December 31 2023 and March 2024. Thanks to consistent hard work and a sustainable strategy, the company has carried out parallel recording referring to PSAK 104 and PSAK 117 since mid-2023. This initiative makes the report restatement process run smoothly and effectively.
From the results of the Financial Position Report for quarter I/2025 as well as the restatement of the December 2024 and 2023 reports, it can be seen that there has been an increase in the quality of the risk portfolio. This improvement is reflected in the decrease in liabilities which is much more significant than the decrease in assets, thus having a positive impact on the company’s equity, which increased to IDR 417.8 billion from the previous IDR 378.4 billion in December 2023.
BRI Insurance Prints Fantastic Profits of 45%, This is an Effective Strategy to Use!
The general insurance industry continues to show positive performance, one of which is BRI Insurance (BRINS) which reported gross premiums reaching IDR 3.90 trillion in 2024, growing 18.25% compared to the previous year which was recorded at IDR 3.30 trillion. Meanwhile, BRINS’ net profit jumped by 45.36%, reaching IDR 702 billion compared to IDR 483 billion in 2023.
At the Annual General Meeting of Shareholders (AGMS), the President Director of BRI Insurance, Budi Legowo, explained the strategy implemented to achieve this brilliant performance, namely strong commitment. “The first commitment is to contribute to maintaining Indonesia’s economic resilience and growth. Second, we are committed to creating a business portfolio that grows healthily and sustainably,” said Budi in a press release on Friday (2/5/2025).
In 2025, BRINS will carry a theme Persistent Penetration of Core Competence with Optimizing Products and Channels Growth of Non-Captive Micro and Retail Business by 30%. Budi explained that this strategic step would be realized through massive collaboration with all stakeholders, both in the BRI Group (Captive) and other business partners (Non-Captive).
“Our target is to increase customer engagement which can generate value and benefits from BRI Insurance, so that the company can become Top of Mind in the general insurance industry in Indonesia,” he stressed.
BRINS President Commissioner, Kris Hananto, also expressed his appreciation for the results achieved by the company. “I appreciate the Company Management and all parties who contributed to the company’s successful performance in 2024,” he said.
At the AGMS, it was also agreed to appoint a public accountant, Ernst and Young Global (EY), to audit the Company’s Financial Report for the 2025 financial year. This step is expected to increase the company’s transparency, credibility and internal control.
Other agendas at the AGMS include ratification of the Company’s Long Term Plan (RJPP) for the 2025-2029 period, as well as the implementation of BUMN Ministerial Regulation No.Per-2/MBU/03/2023 concerning guidelines for governance and significant corporate activities of BUMN, which aims to ensure that BRI Insurance can operate efficiently, transparently and sustainably amidst global changes and increasingly complex economic challenges.
The meeting also announced the decision on the composition of the new management for BRI Asuransi Indonesia at the 2025 GMS, which consists of:
- Main Commissioner: Kris Hananto
- Independent Commissioner: Benny Imam Syafii
- Independent Commissioner: Wahab Talaohu
- Main Director: R. Budi Legowo
- Director of Finance and Operations: Sony Harsono
- Business Director: Recky Plangiten
- Director of Compliance and Risk Management: Heri Supriyadi
- Head of Sharia Supervisory Board: Nilmayetti Yusri
- Member of the Sharia Supervisory Board: Abdul Ghoni
Apart from that, there was an announcement of the honorable dismissal of the management after completing their term of office, namely Independent Commissioner Ayahanita Kussetyaningsih and Technical Director Ade Zulfikar.
Source: https://finance.detik.com/moneter/d-7895960/bisnis-industri-asuransi-umum-masih-moncer
Indonesia’s Reinsurance Deficit Swells by IDR 12 Trillion! OJK Solution: Capital Must Increase 15% per Year
The Financial Services Authority (OJK) noted that in the last three years the national reinsurance deficit has continued to increase. One of the main strategies to overcome this problem is to strengthen capital in the domestic insurance industry. Wahyudin Rahman, a risk management practitioner and General Chair of the Indonesian Insurance Writers’ Community (Kupasi), assesses that the worsening trend in the reinsurance deficit reflects multiple pressures in this sector—both in terms of underwriting, claims, and limited capital capacity.
According to Wahyudin, this situation emphasizes the need to reorganize risk retention strategies and optimize domestic reinsurance. “In order to be able to catch up, the general insurance sector needs to encourage equity growth of at least 10-15% every year in the future to meet the targets set by the regulator at the end of 2026 to 2028,” he said to Bisnis, Tuesday (29/4/2025).
He also highlighted that steps to strengthen capital and open new markets – for example mandatory TPL insurance which is currently being pushed by regulators – are strategic steps to expand the premium base and improve the reinsurance balance sheet position. “However, the success of this program is highly dependent on increasing capital, product innovation, business diversification, as well as strong synergy between government, regulators, industry and all stakeholders,” he added.
Regarding capital strengthening, OJK noted that there was growth in equity in the insurance industry, but there was a striking imbalance between the general insurance and life insurance sectors. Throughout 2024, equity in the life insurance industry recorded growth of 24.5% YoY to IDR 130.16 trillion, while the general insurance sector only grew slightly 1% YoY to IDR 74.68 trillion. Wahyudin views this gap as a reflection of the differences in business character and risk resilience between the two sectors.
Previously, the Chief Executive of the OJK Insurance, Guarantee and Pension Fund Supervision, Ogi Prastomiyono, emphasized the importance of strengthening capital for the domestic insurance industry. By the end of 2024, the recorded reinsurance deficit reached IDR 12.10 trillion, with around 40% of reinsurance premiums channeled abroad. “To reduce dependence on foreign reinsurance, one of the solutions we are pushing for is increasing capital for domestic insurance companies,” explained Ogi in his written statement, Sunday (27/4/2025).
Medical Costs are Skyrocketing! Sharia Insurance is the Key to Protecting Wealth from Critical Risks
In a world full of uncertainty, the ability to manage risk is the main foundation for maintaining and growing the wealth that has been built. A person’s success in maintaining their assets depends greatly on their readiness to face unexpected financial risks. One of the biggest risks is health risk, which can wipe out wealth in a short time.
Global data shows that 43 million people will die from critical illnesses in 2023, accounting for 74% of the world’s total deaths. In Indonesia, critical illness cases have jumped significantly by 28% in a year, from 23 million cases in 2022 to 29 million in 2023. On the other hand, medical costs, both domestic and overseas, continue to skyrocket to hundreds of millions or even billions of rupiah. Without adequate protection, a person risks losing not only their health, but also their financial stability and valuable assets.
“We often feel safe because we have assets, but when a health crisis occurs, these assets cannot always be used immediately. This is where the important role of insurance, including sharia-based insurance, is to manage financial risk,” said Prudential Syariah Chief Customer & Marketing Officer, Vivin Arbianti Gautama at the 2025 Global Islamic Finance Summit in Jakarta, Wednesday (30/4/2025).
Insurance functions as protection and supports financial security. This also applies to sharia insurance which provides benefits in the event of the risk of death or health risks.
Sharia insurance offers added value in the form of the principle of mutual assistance between participants. Every participant who pays the premium helps other participants who are experiencing a disaster. Even if they never submit a claim, participants still play an active role in supporting others.
Apart from that, sharia insurance is based on the principles of being free from usury, gharar and maysir, and participant funds are managed fairly and transparently through the Tabarru’ Fund. This is the power of sharia insurance—participants support each other to face life’s risks, making protection not only an individual matter but also a reflection of social solidarity in order to obtain blessings.
The benefits of sharia insurance are not only felt when a disaster occurs, but are also part of long-term wealth planning, such as retirement funds, children’s education, and maintaining emergency funds without having to sell productive assets. Insurance coverage can be an important source of liquidity to maintain business and family continuity, or prepare a legacy for future generations.
Sharia insurance instills the belief that wealth is not only to be enjoyed, but must be managed wisely and inherited responsibly. Setting up protection early means creating peace of mind in the future. In life, success is not just about collecting, but also caring for and continuing what has been built. Sharia insurance is part of efforts to maintain trust to protect yourself and your family.
“Prevention is always better than cure, including in financial management. With insurance, especially sharia insurance, we minimize the risk of unexpected large losses, protect assets and provide peace of mind for the family,” concluded Vivin.
Source: https://investor.id/finance/396224/ini-manfaat-lebih-asuransi-syariah-dibanding-konvensional
Home Rent-Purchase Scheme Now Gets Life Insurance! SMF Breakthrough Opens Access to Housing for Non-Salaried People
PT Sarana Multigriya Finansial (Persero) or SMF, a BUMN under the auspices of the Ministry of Finance, is encouraging the participation of the insurance industry in residential financing through a hire purchase or rent to own (RTO). Chairman of the Product, Risk Management and GCG Division of the Indonesian Life Insurance Association (AAJI), Fauzi Arfan, stated that the life insurance sector basically supports government programs aimed at improving people’s welfare, including the RTO initiative from SMF.
According to Fauzi, this scheme is very strategic because it targets people with irregular incomes—a group that is increasingly finding it difficult to achieve home ownership. In this scheme, prospective homeowners can live first by renting, before buying fully in the future. Insurance companies are expected to be present to provide life protection if risks such as the death of the tenant occur during the rental period.
Fauzi assesses that this collaboration can create a safer and more sustainable housing financing system, as well as expand the reach of life protection to segments of society that currently have minimal access to financial services, such as informal workers and non-fixed income workers. This is considered to be in line with the spirit of financial inclusion that AAJI continues to encourage.
He also emphasized the readiness of the life insurance industry to have further discussions with all stakeholders regarding the design of appropriate protection products, risk assessment mechanisms, as well as educating the public regarding the importance of long-term protection.
Fauzi sees that this RTO scheme has the potential to give birth to new insurance products that are innovative and relevant, as well as strengthening literacy that life insurance is an important part of big financial decisions such as buying a house. He added, so that the benefits of this program can be evenly distributed, all life insurance companies need to be given the same opportunity to be involved, without any discrimination, in order to create a healthy financing ecosystem and increase public trust in life protection.
Meanwhile, SMF Business Director, Heliantopo, said that the RTO scheme is targeted to start running in the second quarter of 2025. This program is specifically designed for non-fixed income communities with various risk mitigation strategies, including insurance protection for tenants who die. He hopes that the involvement of the financial and insurance industry will strengthen the attractiveness of this program.
YOII Premium Skyrockets 162%! This Digital Insurance Reveals the Key to Success and Fantastic Targets for 2025
PT Asuransi Digital Bersama Tbk. (YOII) managed to record a premium of IDR 110.66 billion in the first quarter of 2025, an increase of 162% on an annual basis compared to the same period last year which was only IDR 42.4 billion. YOII Finance Director, Randy Tandra, said that this surge was mainly supported by rapid growth in the travel insurance line.
“The contribution from the travel segment reaches around 50-60% of the current total premium, followed by micro insurance which we developed through a partnership with e-wallet. That is one of the main drivers,” said Randy during YOII’s public presentation in Jakarta, Tuesday (29/4/2025).
Randy is optimistic that the future prospects for the digital insurance industry are very bright, in line with the roadmap initiated by the Financial Services Authority (OJK) which aims to expand insurance penetration, one of which is through accelerating digital transactions.
“One of the focuses of the roadmap is accelerating digital adoption. Regulators seem to believe that to encourage this growth, digital channels are the key that must continue to be encouraged,” he explained.
However, Randy emphasized that the definition of “digital insurance” itself is still not completely clear. He illustrated this situation as a culinary business that moves to an online platform but does not automatically become a “digital restaurant.”
Even though all YOII products are marketed digitally, he admitted that he could not confirm whether they were fully included in digital transactions because the definition was still vague.
Apart from the big opportunities, Randy also highlighted the challenges of the digital insurance industry, especially regarding public perception of insurance in general. “This is a real challenge. We can create the best product, but if public perception of insurance has not changed, it will be homework not only for digital insurance, but also for the insurance industry as a whole. Insurance has the principle of utmost good faith which must be maintained,” he stressed.
YOII targets to be able to collect premiums of IDR 420-430 billion by the end of 2025, an increase of around 31.25% compared to the total premiums collected throughout 2024 of IDR 320 billion.
RI Insurance Penetration Still Lagging Far Behind, OJK Reveals New Steps to Boost Public Trust!
The Financial Services Authority (OJK) reports that the insurance penetration rate in Indonesia has only reached 2.72% as of February 2025. Even though it has experienced a slight increase from the position at the end of 2023 which was 2.59%, this figure is still relatively low compared to other countries. In comparison, Malaysia recorded 4.8%, Australia and Brazil each 3.3%, Japan 7.1%, Singapore 11.4%, even South Africa was far ahead with 12.6%. Interestingly, the achievement in February 2025 also decreased slightly from September 2024, which touched 2.80%.
Ogi Prastomiyono, Chief Executive of the OJK Insurance, Guarantee and Pension Fund Supervision (PPDP), acknowledged that global uncertainty is still a major obstacle for the insurance industry. However, he remains optimistic that this industry will continue to grow. “This year is indeed full of challenges because global uncertainty is still the main issue, but we still believe that with the roadmap that has been set and support for the RPJMN, the insurance industry will continue to move forward,” he said in a written statement on Tuesday (29/4/2025).
Ogi explained that this growth was supported by various reforms that have been carried out in recent years, which have helped restore public confidence in the insurance industry. He also stated that the long-term prospects are still solid, thanks to various strategic initiatives such as strengthening capital, separating sharia business units (spin off), and establishing a Policy Holder Protection Program (PPP).
Furthermore, OJK encourages insurance companies to increasingly focus on community needs and strengthen literacy and education about the importance of insurance. “We encourage the industry to present products that truly suit people’s needs and continue to increase awareness through massive educational programs,” added Ogi.
In terms of assets, the Indonesian insurance industry recorded a total of IDR 1,141.71 trillion as of February 2025, up 1.03% annually from IDR 1,130.05 trillion. Commercial insurance assets still dominate with IDR 920.25 trillion, a significant increase of 11.5% YoY. However, premium income during January–February 2025 was slightly depressed; Commercial insurance premiums fell 0.94% YoY to IDR 60.27 trillion. In detail, life insurance premiums rose 5.16% to IDR 32.35 trillion, while general insurance and reinsurance premiums contracted 7.17% to IDR 27.91 trillion.
However, the strength of industrial capital remains strong. Risk Based Capital (RBC) for life insurance was recorded at 466.42%, and general insurance and reinsurance at 317.88%—still far above the minimum threshold of 120%.
From the renewal of PSAK 117 regulations to the surge in premiums and profits in the general insurance sector, all these dynamics show that the world of national insurance is undergoing an active and sustainable transformation. On the other hand, protection against health risks through Sharia Insurance is becoming increasingly relevant amidst soaring medical costs and the increasing number of people suffering from critical illnesses. For you industry players, project owners, or entrepreneurs who want to manage risk professionally and optimally, this article is supported by L&G Insurance Broker-company insurance broker trusted in Indonesia who are experts in providing insurance solutions for industrial and project needs. Contact L&G now for consultation and the best protection for your business.
