Liga Asuransi – The Indonesian insurance world is moving dynamically! Starting from new regulations that will shake up the health insurance sector, to the huge potential of the marine cargo line which has not yet been fully exploited. In the midst of these challenges and opportunities, industry players need to be prepared to face the big changes that will come, including LPS’s new mandate to guarantee insurance starting in 2028. This article summarizes 7 of the most updated and complete news in the world of insurance that you must pay attention to, especially for those of you who are involved in the financial, logistics and business risk protection sectors.
Insurance Claim Ratio Drops in 2025! This is the secret behind it that not many people know
The insurance industry in Indonesia recorded a decline in the claims ratio in early 2025. According to the Financial Services Authority (OJK), this decline was largely influenced by insurance companies’ steps to adjust health insurance premium rates—or repricing—following a surge in medical inflation in the previous year.
Ogi Prastomiyono, Chief Executive of OJK Insurance, Guarantee and Pension Fund Supervision, said that medical cost inflation in 2024 will reach 10.1%, much higher than general inflation of only 3%. This forces many insurance companies to increase premiums to maintain financial stability.
“The claims ratio has indeed fallen due to repricing. This is in response to our very high medical inflation, even higher than the global average of 6.5%,” said Ogi at the OJK Board of Commissioners (RDK) Meeting, Friday (11/4).
To respond to this condition as a whole, OJK is currently drafting a new OJK Circular Letter (SEOJK) which will strengthen regulations related to the implementation of health insurance. This regulation is projected to be published in May 2025 after discussions with stakeholders.
The SEOJK will include important regulations such as requirements for companies that can sell health insurance products, the formation of a Medical Advisory Board, product design governance, risk management, as well as a benefit coordination scheme with BPJS Health.
As of February 2025, OJK noted that the claims ratio for life insurance (conventional and sharia) was at 45.42%, while general insurance was recorded at 34.7%. Throughout 2024, the industry claims ratio will fall slightly to 71.2%, although this figure does not include insurance company operational costs which generally range from 10%–15% of total claims.
“If we look at the combined claims and OPEX ratio, in 2023 it will still be above 100%, but in 2024 it will start to fall to below 100%. This is quite a positive trend,” added Ogi.
With the upcoming regulatory measures and appropriate premium adjustments, the insurance industry is expected to maintain a balance between customer protection and business sustainability.
Source: https://keuangan.kontan.co.id/news/ojk-rasio-klaim-asuransi-turun-imbas-penyesuaian-premi-kesehatan
Only Contributes 5% of Premiums, Even though Marine Cargo Insurance Could Be a Gold Mine for the Insurance Industry!
In the midst of the great potential of Indonesia’s maritime logistics sector, the contribution of business lines marine cargo In the general insurance industry premium income is still relatively small. The latest data shows that only approx 5% of the total premiums of the general insurance industry originating from insurance for the transportation of goods via sea.
Wahyudin Rahman, risk management practitioner and General Chair of the Indonesian Insurance Writers Community (Kupasi), assesses that the potential for this business line is very large, but has not yet been exploited optimally. “Indonesia is an archipelagic country with more than 17,000 islands. This means that the distribution of goods between regions is very dependent on sea modes,” he said, quoted on Sunday (13/4/2025).
According to him, with the increase in domestic shipping volume due to the growth of the e-commerce sector, distribution of basic commodities, logistics and the energy sector, demand for protection for the transportation of goods should also increase. Likewise with the export sector which the government continues to encourage through programs go export, creating huge opportunities for marine cargo insurance.
Industry data shows that the premium marine cargo in 2024 it will reach IDR 5.30 trillion, growing 4.2% from IDR 5.08 trillion in the previous year. Even though it is growing, this figure only contributes 5% of the total premiums for the general insurance industry which reached IDR 112.86 trillion.
Why is this figure still small?
Wahyudin explained that the low penetration of the marine cargo insurance market was caused by various factors:
- Lack of literacy and awareness business actors about the importance of protection during the transportation of goods.
- Assuming that insurance only adds to the cost, even though the premium is very small compared to the potential loss.
- Tight tariff competition, especially in the domestic market, which makes profit margins increasingly thin.
- Port and ship infrastructure uneven distribution increases the risk of damage to goods.
- The claims process is complicated and time consuming, such as damaged documents and queues for claim disbursement.
In fact, the government has made it mandatory to use insurance for transporting goods via Minister of Trade Regulation No. 40 of 2020, and supervision is carried out by OJK.
Foreign Policy Impact?
Responding to the potential impact of the United States tariff policy on Indonesian exports, Wahyudin explained that the impact on the domestic marine cargo insurance business would be very minimal.
“Most of our exports to the US use the FOB scheme, so the person who insures the goods is the buyer in the US. The policy is not recorded in Indonesia,” he explained. Only shipments with the CIF scheme must be insured by Indonesian exporters.
In other words, if exports to the US decline due to tariff policies, The impact on domestic marine cargo insurance is relatively small, except for CIF-based shipments which were also heavily impacted.
The bottom line?
The marine cargo insurance business line is gold fields that have not yet been fully exploited. If literacy, education and infrastructure challenges can be overcome, marine cargo’s contribution to the general insurance industry could jump well above 5%.
Not Just Banks! Starting in 2028, LPS is ready to guarantee your insurance too! Here’s the preparation
Good news for you insurance policy holders! Deposit Guarantee Board (LPS) will expand its role, no longer just a “guardian of funds” in the banking sector, but also ready to be guarantee of protection in industry national insurance!
This new mandate comes through Law Number 4 of 2023 concerning Development and Strengthening of the Financial Sector (UU P2SK). In these regulations, LPS will start guarantee the insurance sector starting in 2028.
“LPS was given a new task, a new mandate by the P2SK Law to guarantee insurance quality,” he said Fuad Zain, Head of LPS Region III Representative Office (Sulawesi, Maluku, Papua), at the event Tribune Mo Teased at Studio TribunPalu.com, Monday (14/4/2025), as quoted from YouTube.
LPS Prepares Itself to Face Transformation
Fuad explained, LPS is now central strengthening human resources and infrastructure to be able to carry out his new role optimally. The reason is, insurance coverage is broad—starting from life insurance, general insurance, and health.
“We are preparing everything to get there,” said Fuad.
With this new role, LPS will not only be the protector of bank customers’ funds, but will also become “keep the peace” for insurance policy holders. This means that if the insurance company experiences problems, there will be a guarantee mechanism as is currently the case in the banking world.
Regional Strength Mapping
To support this functional expansion, LPS already has three regional representative offices:
- LPS 1 in Medan (Sumatra)
- LPS 2 in Surabaya (Java)
- LPS 3 in Makassar (Eastern region of Indonesia)
Source: https://palu.tribunnews.com/2025/04/14/mandat-baru-dari-uu-p2sk-lps-jamin-asuransi-mulai-2028
Big Profit! Zurich Syariah Records Profits Soaring 174%, Assets Reach IDR 1.7 Trillion!
Financial performance PT Zurich General Takaful (Zurich Syariah) steal the show! Until the end of December 2024, this sharia-based insurance company has successfully recorded fantastic net profit of IDR 43.86 billion – go on 174,38% compared to the previous year which was only IDR 15.98 billion. This sharp increase is proof of the company’s brilliant performance amidst intense competition in the insurance industry.
Quoted from the financial report (audited), Zurich Syariah’s contribution income grew almost 15% on an annual basis, from IDR 482.69 billion to IDR 554.54 billion at the end of 2024. Even though claims expenses also increased by around 16.74% to IDR 154.12 billion, the company was still able to print underwriting surplus of IDR 92.18 billion, up from IDR 79.53 billion the previous year.
However, not all components experienced an increase. Tabarru’ fund surplus actually fell by 18.41%, to IDR 33.46 billion from the previous IDR 41.01 billion. Even so, other components such as income ujroh rose 15.67% to IDR 274.79 billion, and revenue investment jumped 34.84% to IDR 73.81 billion.
On the financial balance side, Zurich Syariah’s assets increased to IDR 1.72 trillion, or an increase of 10.6% compared to the end of 2023. Meanwhile, Company equity grew 12.07%, from IDR 344.3 billion to IDR 385.87 billion. Liabilities also increase, rose 10.55% to IDR 968.69 billion.
In terms of solvency, Zurich Syariah’s financial position is very strong. The solvency ratio of tabarru’ funds was recorded at 751%, temporary The company’s fund solvency ratio reached an extraordinary level, namely 11,383%! This figure far exceeds the minimum requirements required by regulators, indicating the company is in very healthy condition and ready to expand.
Source: https://mediaasuransinews.co.id/asuransi/laba-zurich-syariah-melonjak-17438/
Jasindo’s Profits Skyrocket 549%! In the midst of a difficult economy, this state-owned insurance company proves its strength
PT Asuransi Jasa Indonesia (Jasindo) shows extraordinary performance in early 2025. Amidst the shadow of economic slowdown and market uncertainty, Jasindo successfully recorded a fantastic profit surge of up to 549% annually, to be IDR 70.16 billion as of February 2025, from before only IDR 10.81 billion in the same period last year.
Not only that, underwriting results the company also listed a significant spike of 128.44%, from IDR 40.53 billion to IDR 92.60 billion. This is a strong signal that Jasindo is enjoying very positive business momentum.
Capital Adequacy Ratio (Risk Based Capital/RBC) Jasindo also rose significantly to 154,05%, far exceeding the minimum limits set OJK of 120%. This indicates Jasindo’s capital structure remains strong and healthy, and able to support future business expansion.
Jasindo Corporate Secretary, Brellian Gema, revealed that this achievement was inseparable from a combination of flexible business strategy, operational efficiency and discipline in risk management. “In the midst of market pressure and a slowdown in a number of sectors, we managed to maintain and even improve our financial performance significantly,” he said, Saturday (12/4/2025).
Jasindo’s business growth is increasingly being felt March 2025, with the performance of a number of business lines soaring sharply compared to the previous year. Some of them:
- Cargo Insurance grew 42.52%
- Engineering surged 471.38%
- Energy (Onshore) up 56.12%
- Liability grew 308.79%
- Personal Accident increased 186.02%
According to Brellian, this achievement was a blessing selective and targeted marketing strategies, as well as management commitment to strengthening risk mitigation and expanding access to service distribution to customers.
Jasindo emphasizes its commitment to continue strengthening business resilience, expanding insurance protection, and creating added value for all stakeholders. Brellian is optimistic that this positive trend will continue until the end of the year.
“With a solid financial foundation and promising business prospects, Jasindo is ready to face various challenges in the global economy which is still turbulent.” he concluded.
New Health Insurance Regulations Coming Soon in May 2025! Industry Gets Ready to Face Super Strict Regulations from OJK
After experiencing delays, Financial Services Authority (SEOJK) Circular regarding the Implementation of Health Insurance Products will finally be officially launched on May 2025. This was conveyed directly by Chief Executive of the OJK Insurance, Guarantee and Pension Fund Supervision (PPDP), Ogi Prastomiyono, in a press conference on the results of the March 2025 Monthly Board of Commissioners Meeting.
“The discussion of this regulation is quite complex because it involves many stakeholders in the health sector. That’s why the launch was delayed,” said Ogi, Sunday (13/4/2025).
This SEOJK draft will comprehensively regulate all aspects of health insurance implementation in Indonesia. Starting from requirements for insurance companies wishing to sell health products, establishment of a Medical Advisory Board (MAB), product design, until risk management and coordination of benefits (Coordination of Benefits/CoB) with BPJS Health.
“This regulation will be the main guide for all actors in the health insurance ecosystem,” stressed Ogi. He also added that this policy was designed to respond to the main challenges of the health insurance sector, namely spike in medical costs or medical inflation which continues to increase.
Based on OJK data, health insurance claims ratio in 2023 recorded at 97.5%, and slightly decreased to 71.2% in 2024. However, these numbers does not take into account operational costs (OPEX) that can suck 10–15% of revenue, make combined ratio the industry remains at risk of losses.
OJK hopes that this regulation can become game changer which helps the industry balance claims burden and premium income.
Several important points in RSEOJK that will be implemented include:
- Special requirements for human resources and information systems for health insurance product providers.
- Schema implementation co-payment or sharing of risk between customers and insurance companies.
- Integration and cooperation arrangements between private insurance company with BPJS Health via schema CoB (Coordination of Benefit).
With the implementation of SEOJK, insurance industry players are required to prepare transform, in order to face more comprehensive and challenging regulations.
Education Insurance Becomes Excellent! This is the right strategy that insurance companies must use so they don’t miss the trend!
Research institute IFG Progress recently released surprising findings: Education insurance is now the most popular product by the Indonesian people—both those who already and those who don’t have an insurance policy!
Wahyudin Rahman, risk management practitioner at the same time General Chair of the Indonesian Insurance Writers Community (Kupasi), views this trend as a golden opportunity for the insurance industry to step on the gas with more relevant and attractive product innovations.
“The first step “is creating flexible products,” said Wahyudin, Thursday (10/4/2025). He gave an example of schemes such as monthly installment payments or options top-up according to customers’ financial capabilities, so that products are more easily accessible to various groups.
Second step, he continued, is integrating education insurance with sharia investment or based on ESG (Environmental, Social, and Governance) principles. This could attract the interest of people who are increasingly concerned about issues of sustainability and ethical finance.
No less important, strategic collaboration also needs to be done. “Insurance companies can work together with educational and banking institutions to expand their reach and strengthen public trust,” he said.
Digitization of services is the fourth key that cannot be ignored. According to Wahyudin, companies must present practical and transparent digital platform, starting from purchasing policies, paying premiums, to tracking funds. The goal: foster public trust which is still a big challenge for the industry.
It also highlights promising driving factors, such as increasing public awareness of the importance of protecting education, technological advances, government policy support, as well growing middle class in Indonesia.
However, this opportunity is still overshadowed by a number of challenges, such as lack of trust in the insurance industry, people’s consumption patterns, until economic uncertainty.
“To overcome this, companies need to improve transparency, financial literacy, and creating products that are adaptive to the needs of modern society,” he stressed.
With this rising trend, the insurance companies that adapt the fastest are predicted to win the hearts of the public—and of course, market share.
From the trend of decreasing claims ratios, the potential growth of marine cargo insurance, to the expansion of LPS into the insurance sector, everything confirms that this industry is undergoing a major transformation. In the midst of rapid changes, it is important for business actors to continue to update and choose trusted partners in risk management. L&G Insurance Broker present as a reliable partner who is ready to guard and protect your business with the best insurance solutions. Don’t let risks hinder your progress—Entrust your insurance needs to L&G Insurance Brokers now.
