Liga Asuransi – Hello loyal readers! In the midst of the rapid flow of innovation and change in the insurance industry, there are many interesting things that we need to highlight. Starting from the use of artificial intelligence that is changing the face of insurance companies in Asia to the explosion of the renewable energy insurance market which is projected to increase sharply. Technology and global policy are now key in shaping the future of this industry. Let’s take a closer look at the various important developments currently taking place in the world of insurance!
Renewable Energy Insurance Market Explodes! Ready to reach US$22.49 billion in 2028
According to the latest report from The Business Research Company, the renewable energy insurance market is expected to reach US$22.49 billion by 2028, with a compound annual growth rate (CAGR) of 5.8%. In 2024, the value of this market is projected to reach US$18 billion, up from US$17.01 billion in 2023, with a CAGR of 5.6%.
This growth is driven by increased investment, incentives from the government, and increased awareness of environmental issues. Factors such as global energy policies, technological advancements, and integration of climate risk models are also playing a major role in expanding the renewable energy insurance market.
Additionally, increasing global energy demand caused by population growth and industrialization is accelerating investment in energy infrastructure. Transition measures to renewable energy and carbon reduction policies are increasingly supporting this growth.
The report also shows that Europe will lead the market in 2023, while the Asia-Pacific region is expected to be the fastest growing region in the future.
Asian Insurance Companies Leverage AI to Rise! Hear How This Technology Changes Everything
Insurance companies in Asia are increasingly leveraging advances in artificial intelligence (AI) to remain competitive and shape the future of the evolving insurance industry. According to the latest McKinsey report, quoted from Insurance Outlook on January 22 2024, these companies see great potential in AI technology and are starting to invest significantly to improve their operations.
In the report, several important points raised are:
Increasing Use of AI in Asian Insurance: Insurance companies in Asia are realizing the transformative impact of AI and using this technology to speed up underwriting processes, claims processing, customer service, risk assessment and fraud detection.
Higher Efficiency and Accuracy: AI allows insurance companies to automate many manual processes, increasing efficiency and decision accuracy. Machine learning enables big data analysis to assess risk and detect patterns.
Enhanced Customer Experience: AI-based chatbots and virtual assistants provide faster, more personalized service and are available 24/7 to help customers choose the right policy and provide answers to their questions.
More Accurate Risk Assessment: AI analyzes multiple data sources, including from social media and IoT devices, to better assess risk, tailor products to individual needs, and detect potential fraud.
More Effective Fraud Detection: AI also helps in detecting suspicious activity patterns, enabling insurance companies to reduce the risk of fraud and financial loss.
Challenges and Opportunities: Adoption of AI in the insurance industry creates huge opportunities but also faces challenges such as data privacy, security and ethical use of AI. Additionally, there is a need to train employees to work effectively with AI-based systems. Collaboration with technology partners and startup companies is one step to maximize the potential of AI.
OJK Officially Gives Permission! This is Manulife Indonesia’s brave step with Sharia Life Insurance
The Financial Services Authority (OJK) officially issued a business license to PT Asuransi Jiwa Manulife Indonesia Syariah, which has offices in the Sampoerna Strategic Square Building, South Jakarta. This permission was granted in connection with the separation of the sharia unit from PT Asuransi Jiwa Manulife Indonesia into a stand-alone entity, namely PT Asuransi Jiwa Manulife Indonesia Syariah.
This permit is contained in KEP76/D.05/2024 and is valid from 4 October 2024, in accordance with the decision of the OJK Board of Commissioners. With this, the new company is expected to run its business based on sound business principles and in accordance with applicable regulations.
OJK also reported that of the 41 insurance/reinsurance companies that have submitted Sharia Unit Separation Work Plans (RKPUS), 29 of them will spin-off by establishing new companies. Meanwhile, 12 others will transfer their sharia portfolios to existing sharia insurance/reinsurance companies.
National Insurance Day 2024: Why is the importance of insurance still underestimated in Indonesia?
October 18 is celebrated as National Insurance Day in Indonesia, which aims to increase public understanding or literacy about insurance and support the achievement of financial inclusion in all circles. Every year, the Indonesian Insurance Council (DAI) organizes this commemoration with various activities related to insurance literacy.
According to DAI, Indonesian people’s understanding of insurance is still low. Based on the 2023-2027 Roadmap for the Development and Strengthening of Indonesian Insurance and the 2022 National Survey of Financial Literacy and Inclusion (SNLIK) from the OJK, insurance literacy is at the level of 31.72%, far below other financial sectors, while inclusion only reaches 16.63 %.
Therefore, it is hoped that the commemoration of National Insurance Day on October 18 will increase public understanding of the importance of insurance. This commemoration is also an opportunity for insurance industry players to strengthen relationships and work together to advance the insurance industry in Indonesia.
The theme for National Insurance Day 2024 promoted by DAI is “Improve Insurance Literacy for the Nation. Understand, own and protect your future with insurance.”
Source : https://news.detik.com/berita/d-7592931/tentang-hari-asuransi-nasional-yang-diperingati-18-oktober
This is Jasindo Insurance’s strategy which succeeded in increasing premiums by up to IDR 2.7 trillion
PT Asuransi Jasindo continues to strengthen its business by implementing the principles of Good Corporate Governance (GCG), which aims to build stakeholder trust. GCG is an important foundation in running an insurance business so that public interests are protected according to regulations.
President Director of Asuransi Jasindo, Andy Samuel, explained that the implementation of GCG was in accordance with the direction of BUMN Minister Erick Thohir, who encouraged BUMN to run clean businesses that benefit the state.
This good governance has had a positive impact on Jasindo Insurance’s performance, with premium income until the third quarter of 2024 reaching IDR 2.692 trillion, an increase of 29.20% compared to the same period last year. Jasindo strengthens core business lines such as property, energy, engineering and marine cargo, as well as strengthening relationships with customers, especially in the corporate segment and BUMN ecosystem.
Apart from implementing GCG, Asuransi Jasindo also seeks to increase insurance literacy in the community through various educational activities. One example is a program providing free personal accident policies to 6,000 students in 30 cities throughout Indonesia. This program even managed to win a record from the Indonesian Museum of World Records (MURI) as providing the most student accident insurance policies.
Andy emphasized that implementing GCG is an obligation to build a strong business foundation, and Jasindo is optimistic that it can maintain positive performance until the end of 2024 by focusing on innovation and efficiency.
Why is MTPL Indonesia Vehicle Insurance Threatened? This is a big challenge facing companies
Third Party Liability Insurance or Motor Third Party Liability (MTPL) in Indonesia still faces significant challenges in the insurance industry. Operational Director of PT Tugu Reinsurance Indonesia, Erwin Basri, stated that the reinsurance portion for MTPL remains low, only 0.36 percent for the last seven years. This shows that most of the MTPL portfolio is covered by the insurance company itself.
Erwin also noted that motor vehicle (MV) reinsurance agreement contracts have experienced a decline, and are expected to continue to decline along with the implementation of POJK 23 concerning minimum equity limits in 2026 and 2028. One of the main challenges faced by insurance companies is the large risks that arise in MTPL policies. , although the frequency of claims is low, the impact can be significant on company finances.
He also highlighted that in some jurisdictions, compensation for bodily injury is very high, forcing companies to hold large reserves to address long-term claims, particularly those involving serious injury or disability.
Erwin added that regulations also hamper insurance companies because MTPL rates are regulated, thereby limiting their ability to set premiums that are appropriate to risk. However, with the right strategy, Erwin is optimistic that the Indonesian insurance industry can face these challenges and better protect customer interests.
Source : https://mediaasuransinews.co.id/asuransi/serba-serbi-tantangan-asuransi-tpl-apa-saja/
Good News for Travelers! Travel Insurance Still Growing Rapidly Despite Soaring Flight Tickets
Towards the end of the year, the travel insurance business usually gets a boost from increased holiday activity, but there are still challenges that hamper the industry’s performance, one of which is the high price of domestic airline tickets.
According to PT Zurich Asuransi Indonesia Tbk, fluctuations in domestic airline ticket prices can affect demand for travel insurance, especially for domestic routes. Musi Samosir, Chief Financial Officer of Zurich Asuransi, explained that although plane ticket prices can have an impact on insurance premiums, the impact is still not significant. He also stated that insurance premiums are determined by many factors, including market segmentation, product innovation, and competition in the industry.
Zurich continues to innovate by offering broader coverage, keeping premiums competitive and strengthening partnerships with travel platforms. Until August 2024, Zurich recorded gross premium growth from travel insurance of more than 50% on an annual basis. Throughout 2023, they also recorded growth of more than 100% YoY with premiums reaching more than IDR 150 billion.
Meanwhile, PT Asuransi Simas Insurtech has a different view. According to Main Director Teguh Aria Djana, although there has been an increase in tourism due to lifestyle, public awareness of the importance of travel insurance is still low. Simas Insurtech recorded a 43% YoY reduction in travel insurance premiums until September 2024, with a target of reaching IDR 30 billion by the end of the year. To overcome this, they focus on product innovation that fits millennial and Gen Z trends.
On the other hand, PT Asuransi Tugu Pratama Indonesia Tbk (Tugu Insurance) focuses more on sharia travel insurance for Hajj and Umrah. According to President Director Tatang Nurhidayat, fluctuations in domestic airline ticket prices do not really affect their performance. Until September 2024, Tugu Insurance sharia travel insurance premiums will increase by 70% YoY. Tugu Insurance’s main strategy is to strengthen cooperation with Hajj and Umrah travel agents, as well as digitizing processes to speed up policy and claim issuance services.
This news is presented by L&G Insurance Broker, insurance broker experienced in Indonesia.
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