The Indonesian insurance industry continues to move rapidly to face major changes in 2026. From digitizing broker oversight with QR codes, default protection for fintech lenders, to the threat of a “perfect storm” due to cyber risks and global turmoil, various new policies are emerging to maintain industry stability and protect consumers. Meanwhile, the Financial Services Authority (OJK) is also preparing major regulations such as the New RBC and accelerating the spin-off of sharia insurance, which are predicted to change the competitive landscape of the industry going forward.
Here’s a summary of the 7 hottest and most important insurance news stories this week that you need to know!
El Niño Alert! Farmers Now Receive Insurance and Water Pumps, as District Government Pursues Food Self-Sufficiency
The Garut Regency Government has begun strengthening the agricultural sector to address the threats of climate change and the risk of crop failure. During the socialization of the 2026 Tertiary Irrigation Pumping and Network Maintenance Operations program, Regent Abdusy Syakur Amin emphasized that agriculture is the backbone of the regional economy, contributing approximately 2.13% to Garut’s economy.
According to him, the majority of Garut residents still rely on the agricultural sector, making sustainable food production a top priority. The local government also supports the national food security program promoted by President Prabowo Subianto by improving agricultural infrastructure and optimizing water resources.
One concrete step taken is the provision of water pumps and strengthening of irrigation networks to maintain water availability amid the threat of El Niño. The Garut Regency Government has also asked farmer groups to maintain government-assisted facilities so they can be utilized in the long term.
Furthermore, the government is providing support in the form of affordable fertilizer and insurance coverage for farmers. This insurance is designed to mitigate the risk of crop failure due to extreme weather and drought.
This step is considered crucial for maintaining agricultural productivity, improving farmer welfare, and strengthening regional food security amidst the increasingly uncertain challenges of climate change.
Source: https://rri.co.id/bandung/regional/2399843/antisipasi-gagal-panen-pemkab-sediakan-asuransi-petani
Fintech Lending Now Has an Insurance Shield! OJK Officially Launches Default Protection
The Financial Services Authority (OJK) continues to strengthen the fintech peer-to-peer (P2P) lending ecosystem by offering credit insurance support as a tool to mitigate the risk of default. The program, officially launched in December 2025, has begun to show progress, although its implementation is still gradual and limited to certain financing segments.
Agusman, Chief Executive of the Financial Services Authority (OJK)’s Financing Institutions Supervisory Agency, explained that fintech lending credit insurance products are now being marketed and utilized by lenders as additional protection against the risk of bad debts. Currently, the OJK, along with industry players and insurance consortiums, is finalizing the collaboration so that implementation can be expanded to more fintech lending platforms.
Although considered a solution to increase investor security, the Financial Services Authority (OJK) emphasizes that credit insurance is not a substitute for primary risk management. Fintech lending providers are still required to conduct prudent credit assessments, collections, and governance in accordance with OJK regulations. Furthermore, insurance companies are required to continuously monitor claims ratios, premium adequacy, and protection quality.
The OJK hopes that this credit insurance will strengthen public trust in the fintech lending industry and create a healthier, safer, and more sustainable digital financing ecosystem amidst the high risk of default in the online lending sector.
Source: https://keuangan.kontan.co.id/news/fintech-lending-resmi-didukung-asuransi-kredit-begini-skemanya
AAJI Warning! Indonesian Life Insurance Industry Threatened by a ‘Perfect Storm,’ Cyber and Geopolitical Risks a Danger Alarm
The Indonesian Life Insurance Association (AAJI) is pushing for strengthened risk management in the life insurance industry amid growing global threats and accelerating digital transformation. The industry is seen as facing increasingly complex challenges, ranging from cyber threats and data management to global economic pressures that could potentially impact the stability of insurance companies.
The Head of the Legal and Compliance Division of AAJI, Robbi Yanuar Walid, emphasized that strengthening cyber resilience is no longer an option, but an urgent necessity. Increasingly widespread digitalization makes the risk of data leaks and cyberattacks a serious threat that must be addressed in a structured manner.
On the other hand, global conditions are also increasing pressure on the industry. Geopolitical tensions, inflation, rising interest rates, and exchange rate volatility have a direct impact on the performance of life insurance companies’ assets and liabilities. Fluctuations in investment returns and the increased risk of policy lapses and surrenders are considered to be putting pressure on the industry’s health.
The Indonesian Institute of Auditors (AAJI) even warned of the potential for a “perfect storm,” a situation where market, liquidity, operational, insurance, and cyber risks occur simultaneously. Therefore, the role of the Chief Risk Officer (CRO) is now considered increasingly strategic, not only as a risk supervisor but also as a crucial partner in business decision-making.
The OJK also emphasized that strengthening governance, capital adequacy, and disciplined risk management are the main foundations for the life insurance industry to remain resilient and competitive amid global uncertainty.
OJK Prepares ‘New RBC’! This New Regulation Could Change the Strength of the Indonesian Insurance Industry
The Financial Services Authority (OJK) is preparing major changes to its system for measuring the financial health of insurance companies through the New Risk-Based Capital (New RBC) scheme. This new regulation is expected to make insurance company capital calculations more accurate, stringent, and sensitive to the real risks facing the industry.
Ogi Prastomiyono, Chief Executive of the Financial Services Authority (OJK), revealed that the OJK is currently piloting the New RBC system with 10 insurance companies, including five life insurance companies and five general insurance companies. This step is part of the industry’s effort to align its solvency framework with international standards such as IFRS 17 or PSAK 117, the Insurance Capital Standard (ICS), and the Insurance Core Principles (ICP).
According to the Financial Services Authority (OJK), the current RBC method is deemed insufficient to fully reflect a company’s capital adequacy to comprehensively address various risks. Therefore, the New RBC will introduce a new, more forward-looking approach with a tiered capital structure, with Tier 1 as core capital and Tier 2 as supplementary capital.
In addition to adhering to global standards, the OJK is also recalibrating risk factors to better align with Indonesian domestic market conditions. Through this new system, the regulator hopes to strengthen the stability of the national insurance industry, making it more transparent, and able to weather economic pressures and long-term risks in a healthier and more sustainable manner.
Source: https://infobanknews.com/ojk-uji-coba-skema-new-rbc-ke-10-perusahaan-asuransi
Indonesian Sharia Insurance Prepares for Massive Breakout! 41 Companies Begin Spin-Off, What’s Going On?
The Financial Services Authority (OJK) has revealed significant developments in the national sharia insurance industry. As of April 2026, 41 sharia insurance and reinsurance companies had submitted amendments to their Sharia Unit Separation Work Plans (RKPUS) as a follow-up to OJK Regulation No. 11 of 2023.
This step is part of the spin-off process, or separation of sharia business units from their conventional parent companies, which is considered crucial for strengthening the sharia insurance industry in Indonesia. Deputy Chairman of the OJK Board of Commissioners, Hernawan Bekti Sasongko, explained that of the total number of companies, 28 chose to establish new entities specifically for sharia, while 13 others decided to transfer their portfolios to other companies.
The Financial Services Authority (OJK) noted that the spin-off process is ongoing. Currently, three companies have officially separated their sharia units by establishing new companies, while six companies are separating through portfolio transfers. Furthermore, dozens of other companies are undergoing similar processes.
Beyond focusing solely on regulation, the OJK also promotes strengthening literacy and human resources in the Sharia insurance industry. This includes a collaboration between the Indonesian Insurance Council and Paramadina University, which includes training, certification, product development, and a recruitment program for Sharia marketers.
This transformation is seen as a major step towards a more independent, competitive Islamic insurance industry that is ready to grow more aggressively in the future.
Insurance Premiums to Slow in 2026! Is the Industry Still Safe or Starting to Enter a Caution Zone?
General insurance and reinsurance industry premium growth began to slow in the first quarter of 2026. Data from the Financial Services Authority (OJK) shows that premiums grew only 1.77% year-on-year (YoY) to Rp 41.24 trillion. This figure is significantly lower than the 17.92% growth in January 2026 and the 7.41% growth in February 2026. This situation raises a major question: is the insurance industry starting to weaken?
However, the Financial Services Authority (OJK) and industry players believe the slowdown does not yet reflect fundamental weakness. Budi Herawan, Chairman of the Indonesian General Insurance Association (AAUI), stated that the slowdown is more influenced by business cycle factors, premium recording patterns, consumer purchasing power, and companies becoming more selective in their underwriting.
Amid the slowdown, the industry’s capitalization remains very strong. The general insurance and reinsurance industry’s risk-based capital (RBC) ratio reached 316.32%, well above the minimum threshold of 120%. This indicates that the company’s risk-bearing capacity remains at a safe level.
Going forward, the industry is starting to focus on healthier and higher-quality growth strategies, rather than simply chasing premium volume. Insurance companies are now being encouraged to strengthen underwriting, develop new products such as cyber insurance and embedded insurance, and expand digital distribution and penetration into the MSME sector.
Although global challenges, claims pressure, and price competition still loom, the insurance industry’s outlook for the first half of 2026 is considered positive, with more moderate but sustainable growth.
Insurance Brokers Now Under QR Code Monitoring! OJK Officially Digitizes STTD, Increasing Consumer Safety from “Fake” Brokers
The Financial Services Authority (OJK) has officially implemented QR code technology on the Registration Certificates (STTD) of insurance and reinsurance brokers as a step to strengthen industry integrity and enhance consumer protection. This policy is part of the OJK’s ongoing push to accelerate the digitalization of the insurance sector.
Ogi Prastomiyono, Chief Executive of the Insurance Supervisory Agency (OJK), explained that QR codes are not just an additional feature, but rather a tool for real-time identity verification and broker registration status. This system allows the public to more easily verify whether the broker they are using is truly registered and supervised by the OJK.
This step is considered crucial to minimize the risk of interactions with unofficial parties or “fake” brokers who could potentially harm customers. In addition to increasing information certainty, QR Codes are also expected to strengthen public trust in the national insurance industry.
As of March 31, 2026, 560 insurance brokers and 105 reinsurance brokers were registered with the OJK and held a Certificate of Insurance (STTD). The entire registration process is now digitally conducted through the Integrated Licensing and Registration System (SPRINT), replacing the previously inefficient manual mechanism.
The OJK believes this digitalization will make the insurance industry healthier, more transparent, efficient, and data-driven. Furthermore, supervision of industry players will become faster and more accurate, along with the strengthening of integrated information systems in the financial services sector.
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These developments indicate that the national insurance industry is entering a phase of major transformation. Regulations are tightening, digitalization continues to accelerate, and risk management is becoming a key focus amid increasingly complex global economic challenges.
For both the public and industry players, this change serves as a reminder that financial protection is no longer just an option, but a critical necessity in an era of uncertainty. The question is, is the Indonesian insurance industry ready for the next major change?
