Dear readers, insureds, insurers, brokers, and loss adjusters, in this third article, we invite you to examine the most sensitive aspects of the Indonesian insurance industry throughout 2025: real challenges, claims experiences, and issues of trust. While the previous two articles addressed consolidation and premium growth, this article touches on the emotional core of the insurance industry—a moment when promises are tested and reputations are at stake.
From L&G Insurance Broker’s perspective, 2025 will be the year when claims will once again become a focus. Not just because of the numbers, but because of their impact on trust across the insurance ecosystem.
Real Challenges That Can No Longer Be Ignored
Throughout 2025, the challenges facing the Indonesian insurance industry became more tangible and multifaceted. Natural disasters, industrial operational disruptions, workplace accidents, and even significant health claims occurred again. Each event brought its own story, but they shared a common thread: risk is always present, even when anticipated.
For brokers, this challenge isn’t just technical, but also communication. Many clients come with high expectations for insurance coverage, but this isn’t always matched by a sufficient understanding of policy limitations. This is where potential friction arises—and where the broker’s role is tested.
Claims as a Test Point of Professionalism
No process better reflects the quality of the insurance industry than claims. At the claims desk, all promises are tested: policy wording, clause interpretation, response time, and the integrity of the parties.
Throughout 2025, L&G Insurance Broker handled various claims from the mining, energy, construction, manufacturing, and logistics sectors. We observed a consistent pattern: clients who understood the risks and appropriate policy structure from the outset tended to navigate the claims process with greater direction and control.
Conversely, claims often become a moment of reflection for companies that have traditionally viewed insurance as merely a formality. When a risk occurs, questions about deductibles, sublimits, exclusions, and the insured’s obligations arise with intensity.
The Role of Loss Adjusters in Maintaining Balance
In the context of claims, the role of loss adjusters will become increasingly crucial in 2025. Loss adjusters are not only tasked with calculating losses, but also maintaining a balance between the interests of the insured and the insurer.
In our experience, claims handled professionally—with open communication and an objective approach—tend to result in resolutions that are more acceptable to all parties. Conversely, miscommunication or unrealistic expectations often prolong the process and erode trust.
As a broker, L&G Insurance Broker always positions itself as a facilitator who bridges dialogue, not as a party that muddies the waters.
The Challenge of Trust Amid Industry Pressure
The year 2025 also highlights a classic yet ever-relevant issue: trust. Amidst profitability pressures, tightening underwriting, and rising claims, the relationship between insureds, insurers, brokers, and loss adjusters is being tested simultaneously.
We note that trust does not collapse because of one big claim, but rather because of an accumulation of small disappointments—unclear information, unmanaged expectations, or promises made without a solid foundation.
At L&G Insurance Broker, we believe that maintaining trust means being honest from the start, even when the answer isn’t always pleasing to the client.
Claims Change How Clients View Risk
One positive impact of claims in 2025 is a shift in clients’ perceptions of risk. Many clients who previously focused on risk transfer through insurance are beginning to understand the importance of prevention and mitigation.
Post-claim discussions are often a turning point. Management begins to ask not only about policy renewals, but also about improving safety systems, operational procedures, and internal risk controls. For brokers, this is a strategic moment to restore insurance to its proper role—as part of risk management, not the sole solution.
Pressure on Insurance Companies and Its Impact
It is undeniable that insurance companies will also be under significant pressure in 2025. The surge in claims across several business lines is forcing insurers to be more cautious in taking risks and settling claims.
From a broker’s perspective, we see that some of the tensions that arise are not due to ill will, but rather due to differing perspectives. The insurer is focused on portfolio sustainability, while the insured is focused on recovering losses as quickly as possible.
This is where the role of a broker becomes vital as a party who understands both sides and is able to bridge these interests professionally.
Important Learnings for Brokers
The year 2025 offers several important lessons for insurance brokers. First, a thorough understanding of policy wording is no longer an option but a necessity. Second, clear and documented communication is key to managing client expectations.
At L&G Insurance Broker, we increasingly emphasize the importance of pre-closing discussions and for-comprehensive renewal. It’s better to spend more time upfront than to face prolonged conflict when a claim arises.
Building Trust as a Long-Term Investment
Trust isn’t something that can be built in a single project or policy. It’s the result of consistency. 2025 shows that clients tend to stick with transparent brokers and insurers, even if they don’t always offer the cheapest solutions.
For L&G Insurance Broker, trust is our most valuable asset. It’s built through honesty, professionalism, and the courage to say “no” when expectations are unrealistic.
Towards 2026: Claiming to be the Best Teacher
As we close out 2025, we view claims not as a burden, but as the insurance industry’s greatest teacher. Every claim teaches us something—about risk, about people, and about systems that need improvement.
If the first article talks about consolidation, and the second article about the quality of earnings, then this third article confirms one important thing: without trust, the insurance industry loses its meaning.
As we look ahead to 2026, our hopes are simple yet fundamental: a more honest industry, more risk-aware clients, more consistent underwriters, and brokers who remain in the middle—maintaining the balance for mutual sustainability.
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Website: lngrisk.co.id
Email: halo@lngrisk.co.id
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