The Indonesian insurance industry is entering 2026 with increasingly complex dynamics. On the one hand, premium performance and industry assets continue to show positive growth. However, on the other hand, various new challenges are emerging, ranging from surging medical inflation, changes in capital regulations, and the impact of global geopolitical conflicts on certain insurance products. These conditions demonstrate that the insurance industry is influenced not only by domestic factors but also by international economic and political developments.
Several regulators, industry players, and insurance associations have begun taking strategic steps to maintain the stability of this sector. These include adjusting health insurance premiums, strengthening corporate solvency regulations through the New Risk-Based Capital (RBC) scheme, and efforts to improve governance and customer protection. Here are seven recent news stories that illustrate key developments in the insurance industry in Indonesia today.
Health Insurance Premiums Threatened with a Rise? Indonesia’s Medical Inflation Reaches 17.8% and Chronic Disease Cases Soar!
The global health insurance industry is facing significant pressure due to soaring medical costs and rising chronic disease rates. This trend is occurring across countries such as Singapore, Hong Kong, India, and Thailand, as well as Europe and the United States. Population aging, advances in medical technology, and the increasing prevalence of chronic diseases such as diabetes and heart disease are driving up health claims.
A similar situation is also occurring in Indonesia. Data from the Indonesian Ministry of Health shows that the number of critical illness cases will increase by around 11 percent by 2024, from 29.7 million to 33 million. This means that one in three adults is likely to experience more than one chronic illness throughout their lifetime.
On the other hand, the national insurance industry continues to grow. The Financial Services Authority estimates that insurance industry assets could grow 5–7 percent by 2026. However, challenges arise as medical inflation in Indonesia is projected to reach 17.8 percent—one of the highest in Southeast Asia.
To maintain sustainable health coverage, insurance companies implement a repricing mechanism, which reviews and adjusts premiums based on medical inflation, claims history, and changes in the customer’s risk profile. Under OJK Regulation No. 36 of 2025, premium reviews can only be conducted once a year, with at least 30 days’ notice to the customer.
Source: https://jatimnow.com/baca-82829-memahami-repricing-asuransi-kesehatan-dan-dampaknya-bagi-nasabah
Insurance Capital Regulations to be Revamped! OJK Tests New RBC Scheme, Industry Prepares for Tighter Standards
The Financial Services Authority (OJK) is reviewing adjustments to the Risk-Based Capital (RBC) or New RBC regulations for the insurance and reinsurance industry. This policy is being prepared to align companies’ financial health measurement systems with the latest accounting standard, PSAK 117 on Insurance Contracts, which will take effect on January 1, 2025.
Ogi Prastomiyono, Chief Executive of the Insurance, Guarantee, and Pension Fund Supervisory Agency (OJK), explained that this study aims to strengthen the industry’s structure while increasing the sensitivity of risk measurement. OJK is currently conducting a comprehensive study through quantitative impact analysis, qualitative evaluation, international benchmarking, and coordination with various stakeholders.
As an initial phase, the New RBC trial will be conducted on insurance and reinsurance companies with equity exceeding IDR 5 trillion. The new regulation is targeted for completion in 2026 and will begin its gradual implementation in 2027.
The RBC itself is a solvency indicator that ensures a company has sufficient capital to meet its obligations to policyholders, even in adverse economic conditions. Currently, the Financial Services Authority (OJK) sets a minimum RBC standard of 120 percent. With the updated, more risk-sensitive RBC framework, the regulator hopes to strengthen the stability of the national insurance industry and align it with international practices.
Insurance Claims Reach Rp19.5 Trillion in Early 2026! Premiums Grow, But Life Insurance Under Pressure
The Financial Services Authority (OJK) recorded total commercial insurance claims reaching Rp19.56 trillion in January 2026. This figure represents an 8.34% year-on-year increase compared to Rp18.05 trillion in the same period last year. This increase in claims demonstrates the continued high activity in the insurance industry, in line with the growing need for public protection.
On the revenue side, commercial insurance premiums reached Rp36.38 trillion in January 2026, representing a 4.67% year-on-year growth. This figure represents a combination of premiums from the life insurance, general insurance, and reinsurance sectors.
However, the performance of each segment showed different trends. Life insurance premiums were recorded at IDR 17.97 trillion, a 6.15% year-on-year contraction. Conversely, general insurance and reinsurance premiums showed significant growth of 17.92%, reaching IDR 18.42 trillion.
In terms of industry strength, total commercial insurance assets also increased. As of January 2026, industry assets reached Rp995.19 trillion, representing a 7.48% increase compared to the same period the previous year.
According to the Financial Services Authority (OJK), premium and asset growth amid rising claims indicates the national insurance industry remains in an expansionary phase, despite pressure on the life insurance sector. This reflects changing market dynamics and growing public awareness of the importance of financial protection.
Is the Insurance Industry Threatened by a Crisis of Trust? OJK to Tighten New Regulations Starting March 2026
Strengthening governance and risk management is considered crucial for maintaining the sustainability of the national insurance industry. The Financial Services Authority (OJK) emphasized that the insurance business is highly dependent on public trust in the companies providing the coverage.
Sumarjono, Head of the Insurance and Support Services Supervision Department at the Financial Services Authority (OJK), stated that good governance should not be merely an administrative obligation but should become a culture within insurance companies. To strengthen this, the OJK will implement Regulation No. 36 of 2025 concerning Strengthening the Health Insurance Ecosystem, which will take effect on March 22, 2026.
The regulation aims to improve the company’s operational accountability and prevent potential irregularities in the management of customer protection funds, particularly in life insurance.
On the other hand, supervision is also strengthened by the House of Representatives of the Republic of Indonesia through the utilization of audit results from the Supreme Audit Agency to encourage improvements in the internal control systems of insurance companies.
The industry is also being encouraged to establish additional protection mechanisms through policy guarantee programs by the Deposit Insurance Corporation.
Meanwhile, the Indonesian Life Insurance Association (AAJI) emphasized the importance of improving human resource competency to strengthen internal oversight systems. This step is also considered crucial to reducing the potential for fraud, which could impact premium stability and the overall health of the insurance industry.
The US-Israel-Iran War Triggers a Domino Effect! Insurance Premiums for Ships and Energy Threaten to Soar
The escalating geopolitical conflict stemming from the United States and Israel’s attacks on Iran has begun to impact the global insurance sector, including in Indonesia. PT Reasuransi Indonesia Utama (Indonesia Re) assesses that several insurance lines with direct exposure to international trade routes are the most affected.
Indonesia Re’s Technical Operations Director, Delil Khairat, stated that marine cargo insurance is the most vulnerable sector because many shipments pass through conflict zones such as the Strait of Hormuz, the Persian Gulf, and the Red Sea. These areas are included in the Joint War Committee (JWC) war risk list, requiring insurance companies to charge significant additional war risk premiums.
Furthermore, marine hull insurance is also affected, as vessels operating in conflict zones are considered high-risk. Several global shipping companies have even begun implementing additional surcharges, ultimately increasing logistics costs throughout the supply chain.
Energy sectors such as offshore and onshore oil and gas projects also face significant risks, as energy infrastructure in the Gulf region is a potential target for conflict. This situation is exacerbated by global energy price volatility, which can increase insured amounts and potential claims.
Industry players warn that escalating conflict could also trigger further impacts on the property sector, business disruptions, and international travel insurance.
Property Insurance Becomes the “King of Premiums”! Contributing Nearly 30% of Industry Revenue
The property insurance sector remains the backbone of the general insurance industry in Indonesia. Data from the Indonesian General Insurance Association (AAUI) shows that property insurance premium revenue reached Rp 24.75 trillion by the third quarter of 2025, representing 5.4% year-on-year (YoY) growth.
This line also contributed significantly to the general insurance industry’s total premiums, which reached Rp84.72 trillion in the same period. Therefore, property insurance contributed approximately 29.2% of the industry’s total premium revenue.
Trinita Situmeang, Deputy Chair of Statistics and Research at AAUI, explained that property insurance premiums come from two main segments: corporate and retail. According to her, the largest demand comes from the corporate sector, which is increasingly recognizing the importance of risk management through risk transfer mechanisms to insurance companies.
Furthermore, increasing public awareness of the risks of natural disasters has also driven the demand for property insurance. Indonesia’s location on the “Ring of Fire” makes asset protection even more crucial.
AAUI Chairman Budi Herawan added that increased activity in the property and construction sectors has also increased demand for property insurance products.
Despite premium growth, claims in this line have actually declined. AAUI recorded claims paid out reaching Rp 5.42 trillion, a 2.9% year-on-year decrease through the third quarter of 2025.
Eid Homecoming Increasingly Risky? Askrindo Offers Accident Insurance Starting at Tens of Thousands of Rupiah
Ahead of the Eid homecoming season, PT Asuransi Kredit Indonesia (Askrindo) urges the public to increase their self-protection by having insurance, especially personal accident insurance orpersonal accidentThe high level of public mobility during homecoming travel is considered to have the potential to increase the risk of accidents during the journey.
Askrindo’s President Director, Fankar Umran, stated that personal accident insurance actually has relatively low premiums, but remains underutilized. Yet, with affordable premiums, people can receive up to Rp20 million in compensation in the event of an accident.
In addition to personal protection products, Askrindo also offers a number of microinsurance products targeting small businesses and micro-businesses. One of these is My Home Microinsurance, which protects homes from fire, theft, and natural disasters.
This product offers compensation of up to IDR 20 million with a premium of around IDR 50,000 per year. Meanwhile, for small businesses, My Business Micro Insurance is available, which protects business assets such as carts or kiosks. This product offers compensation of IDR 2.5 million for carts and IDR 5 million for kiosks with a premium of around IDR 40,000 per year.
Through this microinsurance product, Askrindo hopes that the public will become more aware of the importance of financial protection from various unexpected risks.
These developments indicate that the Indonesian insurance industry is undergoing a transformational phase. Premium growth and fixed assets are positive signals, but challenges such as medical inflation, regulatory changes, and global risks require insurance companies to continuously adapt. Strengthening governance, risk management, and product innovation are key to ensuring the industry maintains public trust while providing sustainable financial protection. With these changes, the insurance sector is expected to continue to grow while facing new challenges in the coming years.
