The Indonesian insurance industry is entering a crucial phase with a series of new policies, innovations, and positive achievements across various business lines. From the Financial Services Authority (OJK)’s tightening of capital and insurance product regulations to the readiness of the Indonesia Deposit Insurance Corporation (LPS) to launch the Policy Guarantee Program, all these dynamics point to a new direction toward a healthier, more transparent, and more competitive industry. Furthermore, the positive performance of several insurance companies, along with increasing public awareness of financial protection, indicates that the sector is moving toward consolidation and sustainable growth.
Short on Capital? Prepare to Be Restricted! The Financial Services Authority (OJK) Will Strictly Regulate Insurance Product Sales Through New SEOJK Regulations.
The Financial Services Authority (OJK) is finalizing a draft OJK Circular Letter (SEOJK) that will tighten business activities for insurance and reinsurance companies with limited capital. This regulation is a direct derivative of POJK No. 23 of 2023, which stipulates minimum equity requirements and the classification of insurance companies based on Equity Insurance Company Groups (KPPE).
In this scheme, OJK divides industry players into two large groups —KPPE1 and KPPE 2.
- For KPPE1. The minimum equity limit is set at IDR 500 billion for insurance companies and IDR 1 trillion for reinsurance. Meanwhile, for sharia units, the capitalthe minimumRp200 billion (insurance) and Rp400 billion (reinsurance).
- As for KPPETwo are required to have higher equity: IDR 1 trillion for insurance and IDR 2 trillion for reinsurance. For Sharia, the limits are IDR 500 billion and IDR 1 trillion, respectively.
Companies that are unable to meet the minimum capital standards will be classified as subsidiaries in the KUPA (Insurance Company Business Group) structure.
Based on the SEOJK draft which is now entering the stage of requesting responses from the industry (rule making rule), the company KPPE1 may only sell simple insurance products.
For conventional and sharia life insurance, there are three types of products that are prohibited from being sold, namely:
- Combination whole life insurance product,
- Annuity business line products,
- Product PAYDI (unit link).
Meanwhile, conventional and sharia general insurance in the KPPE 1 group are prohibited from offering products such as:
- Sharia credit insurance and financing,
- Trade credit insurance,
- Insurance with high-value business lines such as ship hulls, aircraft, satellites, energy (onshore and offshore), and engineering with a retention value exceeding IDR 10 billion.
For conventional and sharia reinsurance companiesKPPE1. Similar prohibitions apply. They are not permitted to reinsure these products, especially if the insured value exceeds IDR 20 billion.
In addition to product restrictions, the companyKPPE1 is also prohibited from running a fee-based business such as:
- ASO (Administrative Services Only) management for employee benefits,
- Marketing of other financial institution products,
- Business collaboration under one ownership.
On the other hand, the companyKPPE2 will have full freedom to organize all insurance products and business activities.
Determination of company classification into KPPE group 1 or KPPE2 will be implemented based on the audited 2028 financial report, and will be effective from July 1, 2029 to June 30, 2030.
The OJK will also evaluate and update the classification annually, adapting to the company’s financial condition. “The determination is valid for one year, starting July 1st and ending June 30th of the following year,” the draft OJK Circular Letter states.
LPS Prepares Policy Guarantee Program: New Protection for Policyholders, New Stability for the Insurance Industry!
The Deposit Insurance Corporation (LPS) is accelerating preparations for the Policy Guarantee Program (PPP), a strategic initiative that will protect policyholders and provide a new foundation for the stability of the national financial system. This step is expected to restore public confidence in the insurance industry, which has been shaken by a number of defaults in recent years.
Member of the Board of Commissioners for the LPS Policy Guarantee Program,Ferdinand DPurba explained that the program was designed based on best practices in various countries.
“As in South Korea, Canada, the UK, and Malaysia, the implementation of PPP has been proven to strengthen public trust, accelerate the handling of failed insurance companies, and maintain the stability of the insurance industry,” he said at the 2025 COO Summit held by AAJI in Bandung, Thursday (6/11/2025).
According to Ferdinan, PPP is a crucial part of the recovery and resolution framework to address potential crises in the insurance sector. This program also serves as a national financial safety net, ensuring the resolution process is effective without compromising customer interests.
He added that the role of the PPP aligns with the Deposit Guarantee Program (PPS) already implemented in the banking sector. Its impact is clearly visible: since the LPS began operating, average third-party funds growth in the banking sector has increased from 7.7% to 15.3%.
“A similar thing happened in Malaysia. After the PPP was implemented, premium growth rose from 5.5% to 9.7%. This is clear evidence that policy underwriting can strengthen the performance of the insurance industry,” Ferdinan emphasized.
PPP Activation Targeted Before 2028
LPS targets the Policy Guarantee Program to be active before 2028. Currently, the institution is finalizing technical policies and resolution mechanisms for insurance companies, including sharia insurance.
“If all prerequisites are met according to schedule, life and general insurance companies will begin registering for PPP participation in the third quarter of 2026,” Ferdinan explained.
Coordination between the LPS (LPS) and the OJK (Financial Services Authority) is key to the success of this program, particularly regarding insurance data exchange. LPS aims to have the Integrated Information Exchange Facility (SAPIT) system go live by 2025, serving as the foundation for the PPP data infrastructure.
Based on Global Practices and Risk Principles
The PPP design is based on global standards and is regulated by Law No. 4 of 2023 concerning the Development and Strengthening of the Financial Sector (P2SK Law). This new mandate reinforces the LPS’s position as a risk minimizer, ensuring not only that risks are resolved efficiently and fairly.
Ferdinan emphasized that the scope and limits of the guarantee will be adjusted to prevent moral hazard and reduce resolution costs. Currently, the LPS is reviewing the types of products and business lines to be guaranteed based on risk characteristics, loss ratio, and market share.
Interestingly, LPS is considering implementing a risk-based premium — unlike most other countries that still use a fixed premium scheme. “If successful, Indonesia has the potential to become one of the pioneering countries implementing this approach in the policy underwriting sector,” he explained.
Collaboration with Industry Associations
As a concrete step, LPS also established cooperation with AAJI, AAUI, AASI, and AAMAI through the signing of a memorandum of understanding on October 18, 2025. This collaboration includes the provision of experts, industrial training, public education, and research to accelerate the implementation of PPP.
In addition, insurance companies are required to submit policy data based on policyholders, insured parties, and participants, as mandated by the P2SK Law, so that the LPS can accurately determine which policies are entitled to coverage.
“With strong infrastructure, cross-agency collaboration, and transparent governance, PPP will become a new milestone for consumer protection and stability in the national insurance industry,” Ferdinan concluded.
Stable Profits Amidst Turmoil! Tugu Insurance Posts Rp594 Billion in Profit by the End of 2025
Amidst the increasingly competitive dynamics of the insurance industry, PT Asuransi Tugu Pratama Indonesia Tbk (Tugu Insurance) has maintained solid performance and demonstrated strong business resilience. As of the third quarter of 2025, the company posted a net profit of Rp594.82 billion, or approximately 85% of its 2024 net profit of Rp700 billion, indicating a positive outlook through the end of the year.
Under the leadership of President Director Adi Pramana, Tugu Insurance strengthened its financial position with equity reaching Rp10.93 trillion and a Capital Adequacy Ratio (RBC) at 361%, far exceeding the minimum limit of 120% required by the Financial Services Authority (OJK).
Adi emphasized that the company’s primary strategy is not simply to pursue growth, but rather to maintain long-term stability through strengthening business fundamentals, sound governance, and robust risk management.
“For us, stability doesn’t mean stagnation. Stability is the ability to grow sustainably by strengthening governance and risk management. We are optimistic that Tugu Insurance will close the year with increasingly positive performance,” he said.
In addition to strengthening financial performance, Tugu Insurance is also focused on product diversification and service innovation to better meet market needs. The company prioritizes the principles of Trust, Easy, and Friendly to enhance the customer experience, while expanding its strategic network and distribution channels with a targeted marketing approach.
Human resources (HR) are also a serious concern. Tugu Insurance instills the values of professionalism, adaptability, and high integrity throughout the organization. A collaborative work culture is considered a key foundation for the company’s long-term success.
Tugu Insurance’s brilliant performance cannot be separated from the implementation of three main keys to success:
- End-to-End Digitalization – modernization of digital work systems and processes,
- Competency-Based Human Capital – competency-based human resource development,
- Growth Mindset – a culture of progressive and innovative thinking across all levels of the organization.
This consistency has earned them various awards, including the Indonesia Most Reputable Companies Awards 2025 for the General Insurance category from SWA Magazine, and the Golden Star Award – Top 20 Financial Institution 2025 from The Finance Magazine with a rating of “Excellent.”
With healthy premium growth and a manageable claims ratio, Tugu Insurance continues to demonstrate the ideal balance between expansion and risk mitigation. Moving forward, the company is committed to being a trusted insurance partner that provides added value to shareholders, customers, and all stakeholders.
Up 9% per Year! Driver Accident Insurance Becomes the New Favorite of the Global Insurance Industry
The global driver accident insurance market continues to accelerate. The Business Research Company estimates that this market value will increase from US$6.15 billion in 2024 to US$6.73 billion in 2025, with a compound annual growth rate (CAGR) of 9.4 percent.
QuotingInsurance Asia, Friday (11/7/2025), this surge is driven by a number of factors, ranging from increasing vehicle ownership in various countries, the still-poor condition of road infrastructure, to rising medical costs due to traffic accidents. Furthermore, limited public transportation in rural areas and unequal access to emergency services also increase the need for insurance protection for drivers.
Looking at medium-term trends, this market is projected to continue growing to US$9.51 billion by 2029, with a CAGR of 9.0 percent. This growth will be supported by the increasingly widespread adoption of telematics in insurance products, as well as the adoption of behavior-based premium models that provide fairer rates based on individual driving styles.
Other supporting factors include the increasing demand for protection for gig economy drivers (such as online motorcycle taxis and couriers), the implementation of mandatory insurance regulations in more countries, and the launch of products specifically designed for older drivers.
Going forward, the industry will be shaped by several major trends:
- More accurate real-time accident detection,
- Utilizing artificial intelligence (AI) to speed up the claims process,
- The emergence of flexible on-demand insurance applications for individual drivers,
- As well as the implementation of a more personalized and efficient vehicle data-based dynamic pricing model.
With the combination of digital innovation and increasing awareness of road risks, the driver accident insurance market is expected to be one of the most promising segments in the global insurance industry in the next few years.
Exports Soar! From Coal to CPO, ACA Cargo Insurance Harvests Rp 192 Billion in Premiums!
PT Asuransi Central Asia (ACA) recorded impressive performance in its marine cargo business throughout the third quarter of 2025. ACA’s Head of the Marine & Aviation Division, Hasudungan Sianipar, revealed that this segment grew 51% year-on-year (YoY) — from Rp127.8 billion to Rp192.7 billion. With this achievement, marine cargo premiums now contribute 4.82% to ACA’s total portfolio.
Hasudungan explained that export products from the mining sector, such as coal, and plantation products like crude palm oil (CPO) and its derivatives, are the main contributors to demand for marine cargo insurance this year. To expand the market, ACA is also developing partnerships with major logistics and courier companies such as JNE, Tiki, Ninja Express, Pos Indonesia, and several trucking companies.
However, he did not deny that tight competition remains a major challenge, particularly due to the aggressive rates offered by insurance brokers.
“Our strategy is to maximize the business potential of direct clients through our agency network,” explained Hasudungan.
Meanwhile, insurance observer Wahyudin Rahman believes that price competition is just one of the many challenges in the marine cargo business. He highlighted the low awareness of insurance among small exporters, as well as global economic fluctuations that impact export volumes and reinsurance costs.
He recommended that insurance companies focus on service digitalization, collaboration with logistics players, and market education, particularly for MSME exporters. He believes bundling insurance products with export services could also be an effective strategy for expanding reach.
Furthermore, Wahyudin estimates that the marine cargo business will grow 7–10% by the end of 2025, in line with continued solid national exports. For the next 2–3 years, the outlook remains positive, although it is highly dependent on global economic stability and the sustainability of the national downstreaming program.
For the record, the Central Statistics Agency (BPS) reported that Indonesia’s total export value reached US$209.80 billion during January–September 2025, representing an 8.14% increase compared to the same period the previous year. Non-oil and gas exports rose 9.57% to US$199.77 billion, while oil and gas exports fell 14.09% to US$10.03 billion.
With strong export momentum and an adaptive business expansion strategy, ACA affirms its commitment to strengthening its position as one of the main players in the national marine cargo insurance line.
Don’t wait until you’re old! These are the 5 stages of life where you should have insurance now.
Amid economic uncertainty and rising financial burdens, Indonesia’s younger generation is now facing increasingly complex financial risks. Yet, protection through insurance can be a simple yet crucial step in maintaining financial stability in the future.
Despite national economic growth of 5.12% (BPS, Q2 2025), the IDEAS survey shows that household purchasing power is actually weakening. Meanwhile, OJK data shows a surge in online lending among young people, indicating high financial pressure.
With the ever-rising cost of education and unforeseen health risks, long-term financial planning has become an urgent need. Unfortunately, although insurance literacy has reached 76.25% (SNLIK 2024), the national insurance penetration rate is only 2.72% (OJK 2025).
Furthermore, 46.3% of Gen Z in Indonesia are considered the sandwich generation, having to support themselves and their families. Without protection, the risk of illness, accident, or loss of income can destabilize their financial stability.
In response to this situation, PT Asuransi Jiwa IFG (IFG Life), part of the Indonesia Financial Group (IFG) holding company, is encouraging the younger generation to understand the importance of insurance in every phase of life, not just as a reaction after a risk occurs.
- When I Was Still Single
During this phase, insurance premiums are still affordable because expenses are not yet high. However, an active lifestyle and high mobility increase the risk of injury or accidents. Products such asIFG LifeSAVERoffers protection starting from IDR 49,000 per month to support the active lifestyle of young people.
- Starting a Career
Entering the workforce means starting a steady income and facing new risks—illness, accidents, and even loss of income. Insurance like IFG LifeCHOICE provides health protection and a premium refund benefit if there are no claims.
- Get married
When you start a family, your financial responsibilities increase. Life and health insurance like IFG LifeCOVER is essential for protecting your partner and safeguarding your future plans from unexpected risks.
- Having Children
The costs of children’s education and healthcare continue to rise. Insurance with additional benefits such as education and critical illness benefits can be a solution to ensure a secure and stable family future.
- Entering Old Age
The risk of chronic disease and medical costs soar in old age. The Financial Services Authority (OJK) estimates national medical inflation at 13.6% by 2025—nearly double the global average. Without insurance, the burden of medical costs can be a significant burden on families.
IFG Life’s Individual Business Director, Fabiola Noralita, emphasized, “Indonesia’s young generation is the driving force of the future economy. With early protection, they can focus on pursuing their dreams, building their careers, and planning their future with peace of mind.”
From singlehood to old age, insurance is not just a financial product, but an investment in peace of mind, ensuring every step toward the future remains protected.
Source: https://momsmoney.kontan.co.id/news/5-fase-kehidupan-ini-sebaiknya-sudah-terlindungi-asuransi
Property Claims Decline, Insurance Premiums Soar 7%! What’s Behind This Trend?
The Financial Services Authority (OJK) recorded a 6.2% year-on-year (yoy) decline in claims in the property insurance sector, reaching IDR 4.8 trillion as of August 2025.
Interestingly, this decline in claims was accompanied by an increase in premium income. According to Ogi Prastomiyono, Chief Executive of the Insurance, Guarantee, and Pension Fund Supervisory Agency (PPDP) at the Financial Services Authority (OJK), premium income in the property insurance sector reached Rp 23 trillion, a 7.2% year-on-year increase.
However, a different trend occurred in motor vehicle insurance. In this sector, claims increased 2% year-on-year to Rp 5.3 trillion, while premium income actually decreased 5% to around Rp 13.5 trillion.
Despite the dynamics in several business sectors, Ogi emphasized that the national insurance industry remains healthy and stable. Total insurance industry assets as of August 2025 were recorded at IDR 1.17 quadrillion, representing a 3.37% year-on-year growth.
For commercial insurance, total assets reached Rp948.14 trillion, up 3.87% year-on-year. This growth was supported by premium income of Rp219.52 trillion from January to August 2025, a 0.44% year-on-year increase.
In detail, life insurance premiums fell 1.21% yoy to Rp117.51 trillion, while general insurance and reinsurance grew 2.42% yoy to Rp102.01 trillion.
Meanwhile, non-commercial insurance — which includes BPJS Kesehatan, BPJS Ketenagakerjaan, and programs for ASN, TNI, and Polri — also showed growth, with total assets of IDR 222.48 trillion, up 1.26% year-on-year.
Regarding claims resulting from the riots at the end of last August, Ogi revealed that the total claims from four business lines — property, motor vehicles, engineering, and miscellaneous — reached around IDR 150 billion.
He emphasized that claim settlement must comply with policy provisions and the principle of prudence, so that policyholders’ rights remain protected and public trust in the insurance industry can be maintained.
The OJK also continues to encourage the strengthening of risk management and reinsurance to ensure optimal protection against disasters and major risks.
With various reform policies, digitalization, and cross-institutional synergy, the national insurance industry is embarking on a major transformation path toward greater stability and public trust. Challenges certainly remain—from regulatory adjustments to increased literacy—but this momentum of change opens up significant opportunities for adaptive and long-term-oriented insurance companies. Amidst dynamic global trends, Indonesia has the potential to become one of the most progressive insurance markets in the Asian region.
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