Liga Asuransi – Hello risk takers, we are back to discussing developments and events in the world of insurance in Indonesia in the last week. Again, we would like to convey that in daily business matters, insurance objects are not only about vehicle, health, life and property insurance, but there is still a very wide range of objects that can be insured. Almost all business processes from A to Z can be protected by insurance. In this edition, as usual, we have again collected 7 selected news related to insurance that are good for you to know. Also included are things that are currently hot lately regarding Tapera.
As always, if you are interested in this article, please share it with your colleagues so they can understand it as well as you.
Oona Insurance Expands Business to the Retail Health Insurance Market in Indonesia
Oona Indonesia, a business unit of the digital general insurance company from Singapore, Oona Insurance, has officially launched a Critical Illness Insurance product which includes protection for cancer, stroke and heart attacks. This launch marks a significant step for the company in entering the retail health insurance market in Indonesia.
“We are committed to offering uniqueness to the market through product and technology innovation, one of which is through the launch of Critical Illness Insurance,” said Abhishek Bhatia, Founder and Group CEO of Oona Insurance, at the Media Launching Big 3 Critical Illness Insurance event held in Jakarta on Wednesday.
Abhishek explained that apart from providing protection against these three catastrophic diseases, the launch of this product also aims to increase financial inclusion in Indonesia. He said that the low penetration of insurance in society was caused by the difficult policy purchasing process and unaffordable premiums.
According to ASEAN Insurance Surveillance 2023, insurance penetration in Indonesia is only 1.4 percent, much lower than other Southeast Asian countries such as Singapore (12.5 percent), Thailand (4.6 percent), and Malaysia (3, 8 percent). “That is why there is low penetration in the market. We are trying to solve the problem,” added Abhishek.
President Director and CEO of Oona Indonesia, Vincent C. Soegianto, stated that the prospects for the national health insurance market are still quite good, despite medical inflation which is estimated to reach 13.6 percent this year. He explained that the launch of this health insurance product was the company’s effort to provide more complete insurance services.
“With the launch of Oona Critical Illness Insurance, we are getting closer to our mission, namely providing insurance products that are easy, affordable and effective and can be accessed digitally by millions of Indonesians,” said Vincent.
Vincent added that this product provides protection up to customers aged 70 years with a coverage value ranging from IDR 100 million to IDR 500 million. “With real-time policy issuance and cash compensation payments of 100 percent of the insured value, customers have the flexibility to use these funds for hospital costs, daily expenses, or other needs,” he said.
Based on BPJS Health data, the financial burden of catastrophic illnesses reached IDR 34.769 trillion last year, an increase from IDR 24.05 trillion in 2022. The launch of Critical Illness Insurance by Oona Insurance is expected to help ease this financial burden for the Indonesian people.
Jasa Raharja Wins “The Strategic Partnership of The Year” Award from the 2024 Insurance Asia Awards
Jasa Raharja won a prestigious award in the category “The Strategic Partnership of The Year” from the Insurance Asia Awards 2024 for their strategic initiative, Jasa Raharja’s Injury Diagnosis, Formulary and National Medical Compendium (DCFKMN-JR).
This innovation, which will start in 2023, aims to address the lack of standards of care for traffic accident victims in Indonesia. Jasa Raharja formed a Medical Advisory Board (MAB) to develop the DC-FKMN-JR standard which is a protocol for diagnosing injuries, medicines and medical equipment.
This initiative ensures optimal treatment costs and quality control for accident victims throughout Indonesia. Through AI technology embedded in the JRCare application, DC-FKMN-JR is able to simplify and improve claim verification.
This award was received by the Operational Director of Jasa Raharja, Dewi Aryani Suzana, at an event held at the Marina Bay Sands Expo and Convention Center, Singapore. The event was also attended by the Main Director of Jasa Raharja, Rivan A. Purwantono, as well as the Head of the Service Division, Head of the Insurance Division, and the Corporate Secretary.
The Main Director of Jasa Raharja, Rivan A. Purwantono, stated that as a BUMN, Jasa Raharja continues to strive to improve corporate performance in order to provide the best service to the community and compete with global companies. “This is the company’s commitment to the satisfaction of all stakeholders,” he said.
This award reflects Jasa Raharja’s ability to become a leading insurance company domestically and in Asia. This achievement was achieved thanks to the hard work of all levels of the company and support from stakeholders which will continue to be improved in the future.
The Insurance Asia Awards is one of the prestigious award events in the Asia Pacific region which awards insurance companies that achieve extraordinary achievements, set new benchmarks and demonstrate innovation in the industry.
“This award will be an incentive for us to continue to present other innovations that can become pioneers in the industry, both in Indonesia and abroad,” concluded Rivan.
Source : https://nasional.tempo.co/read/1889774/jasa-raharja-raih-penghargaan-di-insurance-asia-awards-2024
OJK Reveals Seven Unhealthy Insurance Companies in Supervision Status
The Financial Services Authority (OJK) revealed that currently there are seven insurance companies that have been declared unhealthy and are under supervision status. These companies face various problems, ranging from lack of capital to the inability to pay insurance claims to policyholders.
Chief Executive of the OJK Insurance, Guarantee and Pension Fund Supervision (PPDP), Ogi Prastomiyono, emphasized the urgency of improving insurance companies to increase public confidence, which is currently quite low due to unpaid claims. “We are monitoring the restructuring program. They [the seven troubled insurance companies] have their own programs for financial restructuring plans,” he said on the sidelines of the Indonesia Insurance Professional Forum-AAMAI (The Forum) in Yogyakarta.
Ogi added that the insurance problem is still long, and the public needs to know that the government is dealing with legal issues and lawsuits due to low levels of trust and literacy.
In addition to efforts to restore problematic insurance companies, OJK also continues to realize the insurance roadmap that has been prepared in collaboration with all stakeholders to strengthen the insurance foundation. “Regulation of insurance sector regulations is also being carried out. OJK and other institutions need to make new regulations to replace the old ones. We supervise lending institutions. Every institution needs to guarantee security,” he added.
In May 2024, insurance industry assets were recorded at IDR 1,120.57 trillion, up 1.30 percent on an annual basis from the same position the previous year, namely IDR 1,106.23 trillion. Non-commercial insurance, including BPJS Health, BPJS Employment, as well as ASN, TNI and POLRI insurance programs related to work accident insurance and death insurance, has total assets of IDR 219.58 trillion. “Contracted 1.86 percent yoy. Then claims increased 9.95 percent with a total of IDR 166.11 trillion,” explained Ogi.
Zurich Life and Bank Mayapada Launch Zurich Family Gen Assurance with Benefits of Up to 385%
PT Zurich Topas Life (Zurich Life) in collaboration with PT Bank Mayapada Internasional Tbk launched their newest product, Zurich Family Gen Assurance. This Investment Linked Insurance (PAYDI) product offers a benefit value of up to 385% and accident coverage of up to IDR 3 billion.
The Zurich Family Gen Assurance product combines life, health and investment protection in one insurance policy, offering a breakthrough in financial protection and planning. Through bancassurance collaboration with Bank Mayapada, this product aims to help customers prepare for continued income and maintain family economic stability.
Customers who access Zurich Family Gen Assurance through Bank Mayapada will get a special offer in the form of a 5% customer reward. “Through Zurich Family Gen Assurance, we strive to provide optimal protection and help customers prepare for continued income to maintain family economic stability,” said Richard Ferryanto, President Director of PT Zurich Topas Life, in his official statement.
Richard expressed optimism that the synergy with Bank Mayapada would expand product distribution and provide broader protection to customers. On the same occasion, Deputy President Director of Bank Mayapada Internasional, Thomas Arifin, said that this collaboration was part of a strategy to expand the service portfolio and reach more customers with diverse financial needs.
“Through this partnership with Zurich, we not only offer insurance products that are innovative and have high added value, but also strengthen our position as a bank that serves various market segments, including premium customers. With product flexibility and excellence, as well as Bank Mayapada’s extensive distribution network, “We are confident that this product will have a positive impact on the market,” said Thomas.
Zurich Family Gen Assurance offers a policy guarantee that remains active as long as the basic premium and regular top-up premiums are paid, as well as accident coverage benefits of up to IDR 3 billion. As an additional benefit, Zurich Family Termlink is available which provides life insurance according to family needs.
This product is designed with the flexibility to determine additional benefits, such as additional life insurance benefits, hospitalization benefits, critical illness, death, and premium exemptions. Customers also have the flexibility to determine the insurance extension period up to age 99.
OJK Reports Credit Insurance Premiums Rising 20.94% Until May 2024
The Financial Services Authority (OJK) reported that credit insurance premiums until May 2024 reached IDR 9.93 trillion, an increase of 20.94% compared to the same period last year. This increase is considered to be in line with improvements in setting credit insurance premium rates in an effort to strengthen and improve the sector.
“The increase in premiums is in line with improvements in setting credit insurance premium rates as an effort to strengthen and improve credit insurance,” explained Ogi Prastomiyono, Chief Executive of the OJK Insurance, Guarantee and Pension Fund Supervision in a press release, Wednesday (10/7).
Ogi explained that related to strengthening credit insurance, OJK has issued OJK Regulation (POJK) Number 20 of 2023 which will come into effect in December 2023. This regulation includes various efforts to improve governance and business processes in the implementation of credit insurance business lines, including risk sharing. between banks and insurance companies, reducing acquisition costs, as well as confirming coverage areas that can be covered by general and life insurance companies.
“The impact of strengthening governance is expected to increase more prudent risk management on both parties, thus providing mutually beneficial business cooperation between insurance companies and bank partners,” added Ogi.
Steps that have been and will be taken by OJK to support strengthening credit insurance through adjustments to the provisions in POJK 20 of 2023, include:
- Encourage adjustments to Terms and Conditions (T/C) and premium rates according to the risk profile insured, in accordance with the corridors regulated in POJK 20/2023.
- Encourage the development of a host-to-host information system to facilitate reconciliation and monitoring of credit insurance coverage data.
- Conduct periodic evaluations regarding credit insurance performance by asking insurance companies to submit performance reports to the OJK.
- Monitor and encourage insurance companies to immediately make adjustments to credit insurance products according to POJK 20 of 2023, which can then be applied to changes to cooperation agreements with credit provider institutions (banking, financing and P2P fintech).
OJK also emphasizes the importance of synergy and collaboration, especially in implementing risk sharing between insurance companies and credit provider institutions. This implementation is expected to support growth and financial stability effectively, especially for the insurance and banking industries.
In addition, OJK encourages reinsurance companies to have the same coverage/portfolio database (mirroring) as insurance companies. This step aims to enable reinsurance companies to carry out more optimal pricing and have the same understanding of the risk profile of the insurance objects they cover.
BRILink Agent in Karangboyo, Blora, Expands Insurance Services
Narti, a BRILink agent at the BRI Karangboyo Unit, Blora Regency, Central Java, is determined to continue to introduce and expand the scope of insurance services to the surrounding community. The BRILink agent itself is an extension of BRI services which allows agents to provide banking services directly to the public, including in 3T (Frontier, Remote and Disadvantaged) areas.
This woman who graduated from elementary school has been a BRILink agent for almost five years. In the midst of ups and downs in economic conditions, Narti continues to try to run her business so that it remains productive and has a positive economic impact on the environment.
“Apart from educating the public about banking features, I see that the surrounding environment really needs banking products, especially insurance,” said Narti. He explained that the existence of BRI Accident and Death Micro Health Insurance (AMKKM) can be very helpful, especially when a neighbor is sick or dies.
Thanks to his efforts and dedication, Narti received an award from PT BRILife which collaborates with BRI in 2023 as the agent with the highest BRILife transactions. One of the innovations carried out by Narti is creating a points program for customers. The points collected can be exchanged for basic food items sold at the stall. This encourages the public to recognize and understand the various banking transactions that can be served by Narti.
BRI Ultra Micro SEVP M. Chandra Utama stated that the company appreciates the great women of AgenBRILink who support families and provide added value to society. “We will continue to prioritize empowerment so that more great women are successful in bringing a better life to the local community,” he said.
Apart from that, to improve the welfare of BRILink Agents, especially women, BRI is committed to continuing to provide attractive prize programs as a form of appreciation. By the end of May 2024, BRI had more than 860 thousand BRILink Agents who had successfully recorded 474 million financial transactions with a volume reaching IDR 632 trillion.
Corruption Eradication Commission Investigates Alleged Corruption at PT Asuransi Jasa Indonesia, State Losses of IDR 45 Billion
The Corruption Eradication Commission (KPK) announced that it is conducting an investigation into alleged corruption at PT Asuransi Jasa Indonesia (Jasindo). There are two cases of alleged corruption that are being investigated by the KPK, with total state losses reaching IDR 45 billion.
“There are two cases for Jasindo,” said KPK spokesperson Tessa Mahardhika to reporters, Tuesday (2/7/2024).
Tessa explained that both cases caused significant state losses. The first case relates to the payment of agent commissions by PT Jasindo. In its initial calculation, the Corruption Eradication Commission found a state loss of IDR 36 billion in this case.
“The criminal act of corruption is related to the payment of agent commissions by PT Asuransi Jasa Indonesia (Persero) in 2017-2020. The estimated state loss is IDR 36 billion,” explained Tessa.
The second case relates to commission payments for shipping insurance owned by PT Pelayaran Nasional Indonesia (Pelni). State losses in this case are estimated at IDR 9 billion.
“The criminal act of corruption is related to commission payments for shipping insurance belonging to PT Pelayaran Nasional Indonesia (Persero) from 2015 to 2020. The estimated state loss is around IDR 9 billion,” said Tessa.
The Corruption Eradication Committee (KPK) is committed to thoroughly investigating these two cases in order to recover the state losses that have occurred and enforce the law against perpetrators of corruption. This investigation is part of the KPK’s efforts to eradicate corrupt practices in the insurance sector and increase accountability in state-owned companies.
This news is brought to you by L&G Insurance Brokers, insurance broker experienced in Indonesia.
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