Amidst rapid regulatory changes, global economic pressures, and increasingly aggressive digital transformation, the Indonesian insurance industry is entering a new phase filled with both challenges and significant opportunities. From the threat of layoffs, the New RBC solvency regulations, the digitalization of broker oversight, to major reforms to health insurance and customer policies, all industry players are now being forced to adapt more quickly. Meanwhile, increasing public literacy and the growing interest of the younger generation in financial protection are positive signs for the industry’s future.
Here’s a summary of 7 recent insurance news stories that are currently in the spotlight and are predicted to influence the future direction of the Indonesian insurance industry.
Will the New RBC Regulation Shake Up the Insurance Industry? KUPASI Urges OJK to Not Implement It Too Quickly!
The Chairperson of the Indonesian Insurance Writers Community (KUPASI), Azuarini Diah P., encouraged the Financial Services Authority (OJK) to implement the New Risk Based Capital (New RBC) scheme gradually to avoid triggering turmoil in the national insurance industry.
According to Azuarini, this change in the framework for measuring the financial health of insurance companies is an important step to strengthen the industry. However, its implementation requires caution, as it will directly impact capital strategies, risk management, and the operations of insurance and reinsurance companies.
He believes companies need sufficient time to adapt to the new, more risk-sensitive standards. Therefore, KUPASI recommends that the Financial Services Authority (OJK) conduct phased trials, strengthen data and calibration standards, increase industry capacity building, and tighten supervision during the transition period.
The New RBC itself is part of the PSAK 117-based supervisory adjustments currently under review by the Financial Services Authority (OJK). The regulator targets completion of the new framework by 2026, before its gradual implementation starting in 2027.
As an initial phase, the New RBC trial will focus on insurance and reinsurance companies with equity exceeding IDR 5 trillion. Through this new system, the OJK aims to ensure the industry’s solvency ratios are more accurate, forward-looking, and in line with international standards.
While considered to strengthen long-term industry stability, the implementation of the New RBC also has the potential to impact investment strategies, underwriting, and even corporate capital requirements. Therefore, the transition period is considered a crucial phase to ensure industry stability and the ability to adapt to the new regulations without disrupting business growth.
Bancassurance Still Leads in Life Insurance in Indonesia! 40% of Premiums Come from Banks, Are Agents Starting to Displaced?
The Financial Services Authority (OJK) revealed that the bancassurance channel will remain the mainstay of the Indonesian life insurance industry until the first quarter of 2026. Bancassurance itself is a collaboration between banks and insurance companies to market insurance products to banking customers.
Ogi Prastomiyono, Chief Executive of the Financial Services Authority (OJK), stated that bancassurance contributed 40.4% of total life insurance industry premiums as of March 2026. Meanwhile, agency channels contributed only around 17.6%. This figure indicates that insurance product distribution through banks remains the primary driver of industry premium growth in recent years.
According to the OJK, bancassurance’s strong position is supported by banks’ extensive distribution networks and the growing public demand for protection products integrated with financial services. Customers are considered to have easier access to insurance products directly through the banking services they already use daily.
Nevertheless, the OJK assesses that agency and bancassurance channels still have positive growth prospects going forward, driven primarily by increased financial literacy, digital transformation, and product innovations that increasingly meet community needs.
However, regulators also reminded the industry to continue to pay attention to governance, consumer protection, and marketing quality. This is crucial to ensure industry growth is not only aggressive in terms of premiums, but also healthy and sustainable.
Overall, the life insurance industry’s premiums in the first quarter of 2026 reached Rp47.12 trillion, a slight decrease of 0.14% year-on-year. Despite this, the industry’s capitalization remains very strong, with Risk-Based Capital (RBC) reaching 474.26%, well above the regulatory minimum of 120%.
Health Insurance Regulations Are Getting Tighter! The Financial Services Authority (OJK) Requires Specialist Doctors, Digital Systems, and BPJS Integration
The Financial Services Authority (OJK) has officially tightened regulations on the health insurance industry through POJK Number 36 of 2025. Under the new regulation, health insurance companies are required to possess three key capabilities as a requirement to strengthen governance and enhance consumer protection.
The Head of the OJK’s Insurance Regulation Directorate, Sesriwati, explained that health insurance companies are now required to have competent doctors or health experts to support the claims analysis process and provide professional medical services.
Furthermore, companies are also required to have strong digital capabilities. Insurance systems must be directly connected to hospitals or healthcare facilities to ensure faster, more transparent, and more accurate data exchange. The goal is to prevent unnecessary medical interventions or overtreatment.
The third capability highlighted is the requirement to have a Medical Advisory Board (MAB). This board must be staffed by specialist doctors tasked with evaluating whether a medical procedure is truly necessary. This step is considered crucial for improving the quality of health claims oversight.
Furthermore, the OJK has begun to regulate premium mechanisms more stringently. Repricing, or premium adjustments, are now permitted only once a year, to ensure customers receive cost certainty and better protection.
Interestingly, all health insurance products are also required to be integrated with the National Health Insurance (JKN) system. This scheme is expected to better coordinate the benefits between private insurance and BPJS Kesehatan, allowing customers to receive more optimal and efficient health protection.
Sharia Insurance Investments Suddenly Down! The Jakarta Composite Index Plummets, Is the Industry Starting to Feel Pressure?
The investment performance of the Islamic insurance industry experienced significant pressure in March 2026. The Financial Services Authority (OJK) recorded a negative return of IDR 121.84 billion, after previously recording a positive surplus of IDR 545.24 billion.
Ogi Prastomiyono, Chief Executive of the Insurance Supervisory Agency (OJK), explained that the decline was triggered by weakening market conditions, particularly the 14.42% month-on-month plunge in the Jakarta Composite Index (JCI). This directly impacted equity-based investment instruments that are part of the sharia life insurance portfolio.
This pressure demonstrates that the Islamic insurance industry is also highly sensitive to capital market volatility, particularly when equity investments are dominant. Therefore, the Financial Services Authority (OJK) has begun encouraging Islamic insurance companies to strengthen their investment diversification strategies to avoid over-reliance on a single instrument.
In addition to diversification, the OJK also emphasized the importance of optimizing asset liability management (ALM), strengthening stress testing, and improving internal governance and oversight in investment decision-making.
On the other hand, Sharia insurance practitioner Erwin Noekman believes the industry’s biggest challenge isn’t just market conditions, but also the pressure to generate high returns like conventional investments. However, Sharia investments have certain limitations because they must adhere to sharia governance principles.
Despite this, he believes that current sharia investment instruments are actually quite strong and liquid. With the right risk management strategies, the sharia insurance industry is believed to still have the potential for stable growth amidst financial market volatility.
Insurance Policies Under Major Overhaul! Customers Now Require More Care, Claims Can No Longer Be Subject to “Interpretation”
The life insurance industry has begun making major adjustments to policy documents in response to directives from the Financial Services Authority and guidelines from the Indonesian Life Insurance Association following the Constitutional Court’s ruling on Article 251 of the Commercial Code. These changes encompass the Life Insurance Application Form (SPAJ), policy clauses, claim forms, and insurance company operational guidelines.
While many documents have been updated, the actual customer protection benefits remain unchanged. The primary focus of these adjustments is to clarify rights, obligations, and protection mechanisms to make the claims process more transparent and minimize future disputes.
Insurance observer and Chair of STIMRA, Abitani Barkah Taim, emphasized that the policy is the primary legal document in the relationship between the customer and the insurance company. Therefore, all clauses must be clearly written and not based solely on assumptions or one-sided interpretations.
One key point re-emphasized is the principle of utmost good faith. Customers are required to provide honest information from the outset, including their medical history and risk profile. Furthermore, insurance companies are required to explain the policy’s contents transparently.
Furthermore, the public is reminded to understand the contestable period, which generally lasts two years from the date of policy issuance. During this period, the company can still clarify customer data if it discovers undisclosed information. However, this does not automatically result in a claim being rejected.
Customers also have the right to take advantage of a free look-back period of approximately 14 days after receiving the policy. During this period, the policy can be reviewed and canceled if the coverage does not match the initial description.
This policy document adjustment is considered a crucial step in improving insurance literacy among Indonesians. The industry hopes that customers will now not only purchase insurance products but also thoroughly understand the coverage, exclusions, and claims procedures before signing a policy contract.
A Wave of Layoffs Begins to Hit the Insurance Industry? OJK Warns Claims and Default Risks Could Explode!
The Financial Services Authority (OJK) has warned that a wave of layoffs (PHK) occurring throughout 2026 has the potential to put serious pressure on the national insurance industry. The impact will not only be felt on premium growth but also increase claims risk and the quality of insurance company assets.
Ogi Prastomiyono, Chief Executive of the Financial Services Authority (OJK), explained that people affected by layoffs generally focus more on meeting basic needs than maintaining their insurance policies. This situation increases the risk of policy lapse or termination, particularly for life and health insurance products.
On the other hand, economic pressures resulting from layoffs are also considered to increase the risk of debtor default on credit insurance. Although credit life insurance (AJK) generally covers the risk of death or total permanent disability, the economic and psychosocial stress of job loss can indirectly lead to increased claims.
Therefore, the Financial Services Authority (OJK) has urged insurance companies to strengthen their comprehensive risk management. Recommended steps include tightening the underwriting process, particularly in sectors vulnerable to layoffs, adjusting premiums according to the latest risk profiles, and strengthening risk-sharing schemes with banks.
Furthermore, strengthening claims verification and data integration with banks is also considered crucial to early detection of potential non-performing loans. With this strategy, the OJK hopes the insurance industry will be able to maintain stable performance amid economic pressures and rising layoffs.
Data from the Indonesian Ministry of Manpower shows that the number of workers affected by layoffs from January to April 2026 reached 15,425, with West Java being the province with the highest number of layoffs.
Younger Generations Are Becoming Insurance-Aware! But Why Is Indonesia’s Penetration Still Lagging Behind Neighboring Countries?
Indonesia’s insurance penetration rate still lags behind that of several ASEAN countries, such as Singapore, Malaysia, Thailand, and Vietnam. According to data from the Financial Services Authority (OJK), Indonesia’s insurance penetration rate will only reach 2.7% by 2025, indicating low public adoption of financial protection products.
Nevertheless, positive signs are beginning to emerge. Public enthusiasm, particularly among the younger generation, for insurance education is growing. This was reflected in the enthusiasm of participants at the 2026 Jogja Financial Festival Educational Class event, themed “Young Rich, Old Prosperous,” held at the Jogja Expo Center.
Sumarjono, Head of the Insurance and Support Services Supervision Department at the Financial Services Authority (OJK), explained that low insurance penetration is influenced by a lack of public awareness of financial risks that can disrupt well-being. Furthermore, past cases of claim defaults also continue to impact public trust in the insurance industry.
However, technological advances and open information are seen as beginning to change this situation. People now have easier access to financial education and understand the importance of protection from a young age.
Meanwhile, the representative of the Indonesian Life Insurance Association, Handojo G Kusuma, emphasized that the basic concept of insurance is actually mutual cooperation, where participants help each other when someone experiences a disaster.
The industry hopes that increased financial literacy will encourage more people to prepare for financial protection early. This way, insurance will no longer be seen as a costly expense, but rather as a vital part of future planning and long-term well-being.
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These recent developments demonstrate that the Indonesian insurance industry is moving toward a more transparent, digital, and robust risk management ecosystem. While significant challenges remain, ranging from economic pressures, low insurance penetration, and the threat of cyber risks, regulators and industry players continue to strive to build a healthier and more sustainable foundation.
Going forward, public education, product innovation, and strengthening governance will be key to ensuring the insurance industry not only grows from a business perspective but also becomes more trusted and relevant to the needs of modern society.
