Liga Asuransi– The Indonesian insurance industry is back in the spotlight with various important developments at the beginning of 2025. From the grand eventIndonesia Insurance Summit 2025which is believed to be a milestone in industrial transformation, to the dynamics of sharia insurance which recorded losses of hundreds of billions of rupiah—all of which indicate that this sector is moving towards a new phase full of challenges and opportunities. This article summarizes 7 of the most updated and complete insurance news that must be followed by industry players, financial professionals, and the public who care about risk protection in the modern era.
Insurance Industry Ready to Rise! Indonesia Insurance Summit 2025 Becomes a Turning Point for Major Transformation!
Chairman of the Indonesian Insurance Council (COME ON), Julius Bhayangkara, expressed his belief that the future of the Indonesian insurance industry is very promising. According to him, this sector is currently in a phaserecovery and resurrectionwhich is important to strengthen.
As a form of optimism, DAI together with all insurance associations are again holdingIndonesia Insurance Summit (IIS) 2025, a national forum aimed at strengthening cross-sector collaboration in the industry.
The associations that are members of DAI and play a role in this activity include:
- Indonesian Life Insurance Association (AAJI)
- Indonesian General Insurance Association (AAUI)
- Indonesian Sharia Insurance Association (AASI)
- Association of Indonesian Insurance and Reinsurance Brokerage Companies (APPARINDO)
- Indonesian Insurance Loss Appraisers Association (APKAI)
For this year,AJItrusted to be the coordinator of the organizers by raising the theme:
“Reimagining the Future of Insurance: Innovation for a Sustainable Future”.
Yulius explained thatIIS 2025designed to be a strategic platform to encouragedigital transformation, strengthensustainable innovation, and createsynergy between industry playersto be more competitive and adaptive in facing future challenges.
He also assessed that the implementation of IIS this year was at the right momentum, considering that the national insurance industry was…improve and rise, both in terms of products, services, governance, and strengthening regulations.
Yulius also expressed his appreciation toFinancial Services Authority (OJK)for the support and direction given to make this national scale event a success.
It closes with the hope:
“Through IIS 2025, we want to encourage the national insurance industry to become more…strong in governance, broad in protection, and makes a large contribution to Indonesia’s economic growth.”
Free Meals Get Insurance? Prabowo-Gibran’s Flagship Program Attracts Insurance Industry!
National Nutrition Agency (BGN) planning integration insurance in the Free Nutritious Meals (MBG) program—priority programs of the President’s administrationPrabowo Subiantoand Vice PresidentGibran Rakabuming Raka. This move received initial support fromFinancial Services Authority (OJK), which has given a positive signal for the insurance industry to get involved.
However, because it is still in the early planning stages,insurance associationsin Indonesia has not been able to convey an official position. They are still actively communicating with various parties—from financial regulators, the government, to industry players to discuss the ideal protection scheme.
Executive DirectorIndonesian Life Insurance Association (AAJI), The Market Place, emphasized that at this time his party could not provide much information. He said the discussion was still focused on formulating the risk scheme and the right funding source.
“Sorry, we cannot answer in detail about insurance for MBG because the scheme is still in the early stages of discussion. Including the source of funds and the type of risk that will be guaranteed, everything is still being reviewed,” said Togar to Media Asuransi, Friday (5/23/2025).
Previously, Ogi Prastomiyono, Chief Executive of the Insurance, Guarantee and Pension Fund Supervisory Agency of OJK, encouraged the national insurance industry to fully support the government’s strategic programs—including MBG.
“Currently associations such asAJI And AAUIis preparing an initial proposal on how the insurance sector can be directly involved in supporting government programs, one of which is the MBG program,” explained Ogi.
Source: https://mediaasuransinews.co.id/asuransi/wacana-asuransi-di-program-mbg-begini-respons-aaji/
Indonesia’s Insurance Potential is Huge, But Still Asleep! OJK is Serious About Revive the Industry Through This Grand Strategy!
Ogi Prastomiyono, Chief Executive of the Insurance, Guarantee, and Pension Fund Supervisory Agency of OJK, emphasized that the Indonesian insurance industry has extraordinary potential. However, so far, the real contribution of domestic insurance products is still far from expectations.
Seeing these conditions, OJK is increasingly encouraged to strengthen its commitment to building a healthier, more resilient and highly competitive national insurance sector.
“We continue to roll out various strategic steps to encourage the transformation of the insurance industry in a more positive direction,” said Ogi in a press conference, Thursday (22/5/2025).
These efforts include strengthening the foundations of the financial sector, including increasing capital, better governance, strengthening risk management, and developing human resources and the insurance product ecosystem.
Ogi also emphasized that digital transformation cannot be carried out by OJK alone, but requires synergy from all stakeholders.
In this context, the organization of a forum such as the Indonesia Insurance Summit (IIS) 2025 is very important. This event can be a space for collaboration between industry players, regulators, and associations in responding to challenges and exploring opportunities in the insurance sector.
“Through IIS 2025, we hope that the insurance industry can make a real contribution, not just as a complement, but as a major part of the national economy,” concluded Ogi.
Big Profit! Jasindo’s Profit Skyrockets 68% in Early 2025, This Insurance Unit Grows Fantastically by More than 400%!
State-owned insurance company,PT Indonesian Services Insurance (Jasindo), successfully recordedprofit of IDR 67.81 billion until April 2025, increased sharply68.34% compared to the same period the previous year.
Jasindo Corporate Secretary, Brellian Gema, said that this profit growth was supported by positive performance fromunderwriting results which soared 36,12% YoY, from Rp100.15 billion to Rp136.32 billion. Not only that,income from investmentalso grew by30,30%, from IDR 62.07 billion to IDR 80.88 billion.
“We are implementing a strategy that focuses on healthy growth and is adaptive to market dynamics throughout this year,” Brellian said in a written statement, Wednesday (21/5/2025).
Jasindo’s premium income also showed an increase of8,09%, from IDR 1.03 trillion to IDR 1.11 trillion as of April 2025.
This premium growth is supported by the performance of a number offlagship business line, among them:
- Engineering soared 419,09%
- Personal Accident go on 160,52%
- Energy (Onshore) grow 53,25%
- Cargo increased 48,61%
- Property go on 33,69%
- Liabilityalso increased, although moderately, namely1,13%
Brellian said that his party is optimistic that this growth trend can be maintained until the end of the year. Strategyselective marketing, strengtheningcustomer service, as well as commitment torisk managementwill continue to be the main pillar of Jasindo.
“We are committed to strategically expanding risk protection through a multidisciplinary approach.Risk Management Partnershipwhich provides added value for clients,” he concluded.
Sharia Insurance Loses Hundreds of Billions in Early 2025. This is the Cause According to Experts!
Industry performancesharia insuranceexperiencing pressure in early 2025. According to insurance observers,Abitani Time, this condition is triggered byglobal and domestic economic uncertainty, including the impact ofUS-initiated tariff war.
Based on data fromFinancial Services Authority (OJK), as of February 2025, the sectorSharia life insurance recorded a loss after tax of Rp180.02 billion. On the other hand, Sharia general insurance net profit down 20.7% year-on-year (YoY) become Rp79.88 billion.
One of the main causes of this decline isfalling income from investments. In fact, the investment results in the industrySharia life insurance recorded a minus of IDR 403.36 billion. Meanwhile, Sharia general insurance still recorded investment return growth of 22.6% YoY to IDR 63.19 billion.
However, Abitani, who also serves as ChairmanCollege of Risk Management and Insurance (STIMRA)stated that future prospects remain promising.Global and domestic economic recovery, as well as rapid growth of the halal industry, is considered to be a positive driver for the revival of this sector.
Abitani suggested that Islamic insurance companies focus onstable and safe investment fund placement, even though the profit potential is not too high, in order to maintain business continuity. On the other hand, the developmentdistinctive product based on the principle of sharing riskis also considered crucial to keep the industry relevant and attractive.
In addition, Abitani emphasized the importance ofdigital innovationin services and products, so thatSharia insurance can compete and develop sustainablyamidst dynamic market challenges.
Foreign Reinsurance Will Enter RI! OJK Opens Doors Wide to Encourage Local Insurance to Become More Resilient!
The Financial Services Authority (OJK) together with the government is in the middle ofdrafting new rules which allow Foreign reinsurance companies open branch offices in Indonesia. This step was taken to strengthen the competitiveness and capacity of the domestic reinsurance industry.
Iwan Pasila, Deputy Commissioner for Supervision of Insurance, Guarantees, and Pension Funds at OJK, said thatThe insurance penetration rate in Indonesia is still low, which is actually a big opportunityfor global reinsurance companies. However, he stressed thatstrong capitalization and utilization of digital technologyin the underwriting process is the key to optimally utilizing these opportunities.
“With large capital and digital technology support, insurance penetration can increase with more measurable risks,” said Iwan, Monday (19/5/2025).
Iwan also emphasized the importance ofcompliance with capital regulationswhich has been set by OJK to encourage the strengthening of the national insurance and reinsurance industry. According to him, collaboration with foreign reinsurance is still needed tospread and manage risk globally, provided that local actors have sufficient capacity.
Meanwhile, Ogi Prastomiyono, Chief Executive of the OJK Insurance, Guarantee and Pension Fund Supervisory Agency, said thatCurrently, most reinsurance premiums in Indonesia are still handled by global players.. To increase the national industry’s absorption capacity for risk, OJK is also in the process ofreviewing foreign ownership regulations in the reinsurance sector, including the possibility of relaxing permits for the establishment of foreign branch offices in Indonesia.
“We are coordinating with relevant ministries to open up space for global reinsurance to enter the domestic market,” Ogi said at the April 2025 RDK press conference.
Furthermore, Ogi explained thatThe ability of a reinsurance company to absorb risk is not only determined by the size of its capital, but also bycompetence and ability in risk selection. The latest regulations throughBOY No. 23/2023is also designed to ensure that reinsurers haveadequate financial health and professionalism.
Not Just Singapore! Indonesia is Ready to Become a Global Reinsurance Magnet, Here’s the Ultimate Strategy!
The government is tryingreduce the national reinsurance balance deficitwhich has continued to widen over the past three years. One of the strategic steps being studied isinviting international reinsurance companies to invest directly in Indonesia, even making this country asglobal reinsurance center.
According to delil khairat, Director of Technical Operations of PT Reasuransi Indonesia Utama (Indonesia Re),Neighboring countries such as Singapore and Malaysia can be used as a reference. Singapore, he said, has already shot up to become a major reinsurance hub in Asia, even surpassing Hong Kong. Many of the world’s reinsurance giants have opened branches there.
“The premium structure in Singapore is unique. Although the population is only 5 million, the majority of premium inflows come from abroad,” said Delil, quoted Monday (19/5/2025).
Malaysia, he said, although not as big as Singapore, has becomealternative reinsurance hubin Southeast Asia. A number of big players such asSwiss Re, Munich Re, SCOR Re, until Reinsurance Group of America (RGA)already has an office inKuala Lumpur.
Delil highlightsMalaysia’s advantages in the dual-regulator system, namely for onshore companies regulated byBank Negara Malaysia, while the offshore ones areLabuan Islandarranged byLabuan Financial Services Authority (LFSA). LFSA functions like OJK in the free zone and offerslooser regulations as well as very low tax incentives, even tax free in certain period, thus attracting many foreign reinsurance companies to open licenses there.
“The regulation in Labuan is modeled after other global financial centers such as Bermuda, Cayman Islands and Dublin. The goal is clear: to attract premiums from overseas into Malaysia,” Delil explained.
Seeing the success of Malaysia, EvidencebelieveIndonesia can emulate a similar strategy for reduce the reinsurance balance deficit. He supports the moveOJK and related ministries the middle one review regulatory relaxationto make it easier for global reinsurance companies to open offices in Indonesia.
“Reinsurance is basically a global business. If we want to be more involved, then we must be able to become a regional hub. The more companies operating here, the greater the premium flow that comes in, and automatically helps improve the balance of payments,” he concluded.
The series of news above reflects how dynamic the development of the Indonesian insurance industry is today. Amidst the pressure and uncertainty, there is also great optimism about digital transformation, cross-sector collaboration, and sustainable innovation that can be the driving force of the industry. For this reason, business actors and project owners in various sectors need to ensure appropriate and reliable risk protection.
This article is supported byL&G Insurance Broker, an insurance brokerage company in Indonesia that specializes in providing comprehensive insurance solutions for industrial and project needs. With extensive experience and a team of licensed professionals, L&G is ready to help you navigate risk more safely and efficiently. Contact us for a free consultation on the best insurance protection for your business.
