The Indonesian insurance industry is once again in the spotlight, with increasingly complex dynamics in early 2026. From the issue of low youth literacy, aggressive corporate growth ambitions, the controversy surrounding agent tax regulations, to the discourse on state policy guarantees, the sector is experiencing a transitional phase that will determine its future direction. On the one hand, industry assets continue to grow and business expansion continues. However, on the other hand, claims pressure, slowing premiums, the risk of trade defaults, and the need for digital transformation represent real challenges that cannot be ignored.
These seven recent developments illustrate how the insurance industry is facing not only internal challenges but also external factors such as fiscal policy, economic stability, and changing consumer behavior. Every policy and strategy adopted today will significantly impact public trust and the industry’s future competitiveness.
Insurance Literacy Still Low, AAJI & OJK Partner with Campuses to Produce a Risk-Aware Generation!
The Indonesian Life Insurance Association (AAJI) expressed its full support for the Financial Services Authority’s (OJK) program to improve financial literacy and inclusion through a public lecture and panel discussion at the University of Jember (UNEJ), East Java. The event, themed “Insurance, the Young Generation, and Contribution to the Nation,” was attended by over 300 students and stakeholders.
Ogi Prastomiyono, Chief Executive Supervisor of the Financial Services Authority (OJK), emphasized the importance of early risk education. Based on the 2025 National Survey of Financial Literacy and Inclusion (SNLIK), the insurance literacy index was recorded at 45.45%, while inclusion was only 28.50%. This gap is deemed necessary to narrow through ongoing collaboration between regulators, industry, and universities.
Acting Chairman of the AAJI Board of Directors, Albertus Wiroyo, called campus collaboration a long-term investment for the industry’s future. As of January–September 2025, the life insurance industry’s assets reached Rp646.58 trillion, with Rp571.40 trillion of that being investments, including in government securities.
AAJI also introduced the Harry Diah Scholarship Program (BHD) to support undergraduate and doctoral student research. Since 2024, the program has reached 46 recipients from 11 universities. This initiative is expected to strengthen literacy, research, and talent regeneration in the national life insurance industry.
Ciputra Life Targets Double-Digit Growth in Assets by 33% by 2026! Overconfident?
PT Asuransi Ciputra Indonesia (Ciputra Life) has set ambitious targets for 2026, targeting double-digit asset and premium growth. This target was set after the company recorded a 33% increase in assets by the end of 2025—a figure far exceeding the industry average.
According to the Financial Services Authority (OJK) estimates, insurance industry assets are projected to grow 5%–7% annually by 2026. Ciputra Life Director Listianawati Sugiyanto believes this projection is realistic as long as national economic momentum is maintained and supported by favorable government policies. She believes domestic consumption and the investment climate are the main foundations that will drive insurance penetration and asset accumulation.
To achieve its targets, Ciputra Life relies on optimizing its existing portfolio and expanding new growth sources. Its Credit Life Insurance line remains its mainstay, strengthened by collaborations with more than 20 banking and multifinance partners.
This strategy demonstrates management’s confidence in maintaining the pace of expansion amidst economic dynamics. However, challenges remain, particularly maintaining business quality and risk management to ensure aggressive growth doesn’t compromise long-term sustainability.
With Tax Regulations in Limbo, Insurance Agents Urge the DGT to Speak Up!
Indonesian Insurance Agents Association (PAY) highlighted the uncertainty of tax regulations, which are considered burdensome for insurance agents. To date, six points of requests submitted to the Directorate General of Taxes (DGT) since April 2024 have not received an official response. PAAI is also urging a focus group discussion (FGD) to prevent prolonged differences in interpretation.
The six main issues include a review of PMK-168, clarification of the tax status of agents as freelancers bound to one company, reopening access to the Net Income Calculation Norm (NPPN) without turnover limits, adjustments to the Core Tax system, andclarificationThe obligations of Taxable Entrepreneurs (PKP) refer to PMK 81/2024.
PAAI believes this lack of clarity has the potential to increase compliance burdens and create legal uncertainty. The main focus is on agents with a turnover exceeding IDR 4.8 billion, who can no longer file annual tax returns using the standard system because the Core Tax system requires bookkeeping.
According to PAAI, this issue is not merely an administrative one, but also concerns fiscal fairness and the sustainability of the insurance ecosystem. If it continues, the impact is feared to be widespread, depressing national insurance literacy and penetration.
Source: https://wartaekonomi.co.id/read601758/paai-soroti-ketidakpastian-pajak-agen-asuransi?page=1
Exports Soar, But the Threat of “Unpaid” Lurks! MSMEs Could Collapse If This Risk Is Ignored
Amidst the ambition of 8% economic growth in 2028–2029, Indonesia’s export performance is showing a positive trend. Data from the Central Statistics Agency (BPS) indicates that exports will reach approximately US$234 billion by October 2025, with total trade transactions reaching US$432 billion. However, behind this optimism, the risk of default in trade transactions is a serious and often overlooked threat.
The increasingly popular open account scheme allows exporters to ship goods before receiving payment. When buyers fail to pay—whether due to bankruptcy, default, or political risk—the exporter bears the immediate loss. Amidst the global slowdown and rising Days Sales Outstanding (DSO), cash flow pressures are increasingly felt, especially for MSMEs, which contribute 60% of GDP and employ over 120 million people.
If 5–10% of MSME transactions are problematic, potential losses could reach tens of trillions of rupiah. Therefore, strengthening trade credit insurance is crucial, both for exports and domestically. Institutions such as Asuransi Asei Indonesia and the Indonesian Export Financing Agency (Lembaga Pembiayaan Ekspor Indonesia) play a crucial role in mitigating commercial and political risks.
Without disciplined risk management, national export ambitions could be hampered. Risk protection is not merely an add-on, but a foundation for trade resilience.
From 15 to 3! The Government Prepares a Super Holding for State-Owned Insurance Companies. Who Will Survive?
The planned consolidation of 15 state-owned insurance companies into three main entities marks a new chapter in the restructuring of the non-bank financial services industry. Danantara Chief Operating Officer, Dony Oskaria, stated that the new structure will consist of one life insurance company, one general insurance company, and one credit insurance company. This move is claimed to be aimed at increasing efficiency, strengthening capital, and clarifying the business focus of each line.
The consolidation was coordinated with regulators to maintain financial system stability. The merger is expected to strengthen underwriting capacity, enhance risk management discipline, and enhance governance transparency.
Budi Herawan, Chairman of the Indonesian General Insurance Association (AAUI), believes consolidation is nothing new in the insurance industry. If well-planned, this step can strengthen capital foundations and improve operational efficiency.
This restructuring also relies heavily on the role of Indonesia Financial Group (IFG), the holding company for state-owned insurance, guarantee, and investment companies. IFG includes entities such as PT Jasa Raharja, PT Jamkrindo, PT Askrindo, PT Asuransi Jasa Indonesia, and IFG Life.
The government hopes that consolidation will reduce industrial fragmentation and create a healthier, more integrated, and more competitive entity amidst the dynamics of the global economy.
0.3% Growth! Signs of a General Insurance Slowdown Are Increasingly Real
The Indonesian general insurance industry faces dual pressures amid slowing premium growth and rising claims. Data from the Indonesian General Insurance Association (AAUI) shows that premiums reached Rp112.86 trillion in 2024, representing an 8.7 percent increase. However, claims also rose by 8.5 percent, squeezing companies’ underwriting margins.
The market structure remains concentrated in the property, motor vehicle, and credit sectors, which account for approximately 65 percent of premiums. This dependence makes the industry vulnerable to spikes in claims, particularly due to catastrophic risks and increased accident frequency. Challenges will become more pronounced in the first quarter of 2025, when premium growth will be only 0.3 percent, reflecting macroeconomic pressures.
From a regulatory perspective, the Financial Services Authority (OJK)’s minimum risk-based capital (RBC) standard of 120 percent encourages the industry to maintain solvency. While the average RBC remains healthy, this regulation burdens small companies and encourages consolidation.
Amidst these conditions, digital transformation is key to competitiveness. Companies are being urged to accelerate underwriting automation, digital claims services, and the use of big data. Without innovation and strengthened risk management, general insurance companies risk losing market share in an era of increasingly fierce competition.
Want Insurance Policies Guaranteed by the State? House of Representatives Uncovers Japanese-Style Scheme Option
The Chairman of Commission XI of the House of Representatives, Mukhamad Misbakhun, highlighted the ongoing debate regarding the insurance policy guarantee scheme in Indonesia. The fundamental question is: will the state guarantee only life insurance or will it also cover other insurance lines? According to him, there is currently no clarity regarding the policy basis if the guarantee is focused solely on life insurance.
Misbakhun cited the Japanese model, which has a comprehensive guarantee system, encompassing not only banking but also insurance and even capital market investments. This scheme works because of the characteristics of the Japanese financial system, including very low interest rates on savings, which encourages people to divert funds to investment instruments.
He also touched on the need for clarity between the focus of policy underwriting and the resolution mechanisms for troubled insurance companies, similar to the authority currently vested in the Deposit Insurance Corporation (LPS) for bank resolution. He argued that Indonesia needs to prioritize: expanding the scope of underwriting first or strengthening the resolution scheme simultaneously.
This debate is considered crucial so that the insurance policy not only provides a sense of security for policyholders but also strengthens the stability of the national financial industry in a sustainable manner.
This series of developments confirms that the Indonesian insurance industry is at a crucial juncture. Digital transformation, strengthened capital, regulatory certainty, and increased public literacy are key foundations for the industry to not only survive but also thrive.
Going forward, the balance between business expansion and risk management will be crucial. Without an adaptive strategy and close collaboration between regulators, industry players, and stakeholders, the growth we pursue risks losing its way. Conversely, with strong governance and continuous innovation, the insurance sector has the potential to become a vital pillar of national economic stability and growth.
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