The insurance industry continues to be in the spotlight amidst economic dynamics, social risks, and developments in financial technology. From the revocation of business licenses of giant companies like Jiwasraya to rising claims due to riots, critical illnesses, and fluctuating export trends, the insurance world presents stories relevant not only to industry players but also to the wider public. This article summarizes seven recent news stories highlighting key developments, challenges, and opportunities in the Indonesian insurance sector, including unique protections for luxury collectibles and pets, which are currently in the public eye.
OJK Revokes Jiwasraya’s Business License, Ending the Insurance Giant’s Long Journey
Financial Services Authority (OJK)officially revokes business permitPT Jiwasraya Insurance (Persero)in the field of life insurance. This decision is stated inKEP-9/D.05/2025 dated January 16, 2025, marking the end of the long journey of one of the oldest insurance companies in Indonesia.
Operational Prohibition & Liquidation Obligation
Since the permit was revoked, Jiwasraya prohibited from carrying out life insurance business activitiesShareholders, directors, commissioners, and even employees may not transfer, pledge, or take any action that could reduce the value of the company’s assets.
OJK requires Jiwasraya to:
- Stop all business activities
- Prepare the closing balance sheet within a maximum of 15 days after the permit is revoked
- HoldingGMSno later than 30 days to decide on dissolution and form a liquidation team
Referring to the letter from the Minister of State-Owned EnterprisesS-30/MBU/01/2025Jiwasraya finally held a GMS on January 22, 2025 and officially formed a liquidation teamAll staff are required to submit important data and documents without hindering the process.
Jiwasraya’s Long History
- Initially established during the Dutch colonial period with the nameNILLMIJ (Dutch East Indies Life Insurance and Annuity Company).
- Din nationalization post-independence and officially becamePT Jiwasraya Insurance (Persero)in 1973.
- For decades, Jiwasraya has been known as one of the icons of the Indonesian life insurance industry.
Financial Scandals & Corruption Cases
The turning point occurred in 2018, when there was a product problemJS Saving Planemerged. The Attorney General’s Office’s investigation revealed the existence of corruption cases with state losses reaching tens of trillions of rupiahA number of Jiwasraya officials and related parties have been named as suspects.
Government Restructuring & Solutions
To protect police officers, the government conducts restructuring scheme with a big step:
- Police diversion→ almost all Jiwasraya policies were transferred toPT IFG Life Insurance (IFG Life).
- Financial Restructuring→ ensures that policyholders remain protected even if the parent company ceases operations.
End Point: Jiwasraya Liquidation
With the revocation of the permit by the OJK in January 2025,Jiwasraya officially ceases operations and is now undergoing the process of full liquidation. The end of this journey also marks the end of the long history of one of the most legendary insurance companies in the country.
Riots Cause Heavy Losses to Buildings and Public Facilities, RSMDCC Insurance Claims Immediately Flood In
A number of public facilities (fasum) and government buildings affected by the recent mass riots have now begun filing insurance claims. This was conveyed by the Chief Executive of the Insurance, Guarantee and Pension Fund Supervisory Agency of the Financial Services Authority (OJK), Ogi Prastomiyono, in a press conference on the results of the OJK RDKB, Thursday (4/9/2025).
According to Ogi, several public facilities affected by the riots are in the claims process, including:
- Ciracas Police Station
- Jambi High Prosecutor’s Office
- Mamuju High Prosecutor’s Office
- Front fence of the MPR/DPR Building
- DJKN Building, Jakarta Regional Office
The buildings are guaranteed by the State Property Insurance Consortium (KABMN).
In addition, a number of buildings protected by private insurance companies also filed claims, including:
- South Sulawesi DPRD Building
- Grahadi Building Surabaya
- 3 police posts in Slipi, Salemba, and Gunung Sahari
- A hotel in Bandung
Not all vehicles are covered
Not only buildings,motor vehicles were also affected. However, Ogi emphasized that there were many vehicles that did not have a riot insurance policy, especially vehicles purchased through banks or multi-finance institutions. As a result, the owner’s losses cannot be covered.
RSMDCC Insurance in the Spotlight
On this occasion, Ogi emphasized the importance of additional insurance with the risk of riots or Riot, Strike, Malicious Damage, and Civil Commotion (RSMDCC)This product is highly relevant because it provides protection against losses due to riots, both to public and private assets.
“We are encouraging increased protection of state assets through KABMN, as many state assets remain unprotected,” Ogi said.
Awareness Predicted to Increase
The OJK is optimistic that public, corporate, and government awareness of the importance of RSMDCC protection will continue to grow. Losses due to riots can reach astronomical figures, and only insurance can be a last resort financial defense.
WOW! Indonesian Insurance Assets Reach Rp 1,169 Trillion, Here’s the Breakdown!
Indonesia’s financial services industry continues to show positive performance amidst economic dynamics.Financial Services Authority (OJK)recorded, as of July 2025national insurance industry assets reached Rp 1,169.64 trillion, growing 3.30% annually (year-on-year/YoY).
Chief Executive of the Insurance, Guarantee and Pension Fund Supervisory Agency (PPDP) of the Financial Services Authority (OJK),Ogi Prastomiyono, stressed that the insurance sector remains solid.
Commercial Insurance Performance
- Total assets:Rp. 948.40 trillion (+3,99% YoY)
- Premium income January–July 2025:Rp. 194.55 trillion (+0,77% YoY)
- Life insurance premiums:Rp. 103.42 trillion(down 0.84%)
- General insurance & reinsurance premiums:Rp 91.13 trillion (+2,67%)
From a capital perspective, the commercial insurance industry is considered very healthy.Risk-Based Capital (RBC)recorded well above the 120% threshold:
- Life insurance: 471,23%
- General insurance & reinsurance:312,08%
Non-Commercial Insurance
Insurance that coversBPJS Health, BPJS Employment, and ASN/TNI/Polri programs also recorded growth:
- Total assets:Rp. 221.24 trillion (+0,44% YoY)
- Award: Rp. 110.57 trillion (+5,58% YoY)
- Claim:Rp. 113.53 trillion (+6,05% YoY)
Pension Funds Grow Higher
The pension fund industry recorded even stronger growth:
- Total assets:Rp. 1,593.18 trillion (+8,72% YoY)
- Voluntary retirement program:Rp. 392.56 trillion (+4,66%)
- Mandatory pension program:Rp. 1,200.56 trillion (+10,12%)
However, the number of participants in the voluntary retirement program decreased slightly to 5.36 million people, while the mandatory pension participants actually increased to 23.74 million people.
Guarantee Sector
- Total assets:Rp. 48.37 trillion (+1,69% YoY)
- Guarantee service value:Rp. 4.44 trillion
- Guarantee claim:down 17.75%to Rp. 4.14 trillion
Ogi also emphasized that the OJK will continue to strengthen the insurance, guarantee, and pension fund ecosystems. One way is by accelerating the establishment ofAceh Sharia Jamkrida And Jamkrida North Sumatra, as well as attending the first re-insurance company in Indonesia which was officially established in August 2025.
Coal Exports Drop Nearly 7%, Impacting Marine Cargo Insurance Performance
The general insurance industry is again facing new challenges.Indonesian General Insurance Association (AAUI)noted that the decline in coal export volume also affected the performance of the coal line.marine cargo insurance.
Data fromCentral Statistics Agency (BPS)shows, as of July 2025 coal exports will only reach214.71 million tons, down6.96% year-on-year (YoY).
Chairman of AAUI,Budi Herawan, explained that coal is one of the main commodities in the transportation of export goods which is guaranteed by marine cargo insurance.
“With the decline in coal exports, there is automatically an impact on marine cargo insurance, although it is not the only factor,” explained Budi.
Marine Cargo Premiums See Slight Correction
The effect of this decline in coal exports can be seen inmarine cargo insurance premiumscontracted0,4% YoYas of June 2025, with a value reachingRp. 2.77 trillion.
Diversification is the Key
Budi emphasized the importance of portfolio diversification for the general insurance industry so that it does not become too…relies on coal commodities. Great potential can also come from other export commodities, such as:
- Coconut palm oil
- Fishery products
- Rubber
- Manufacturing
In addition, exporters’ awareness of the importance of insurance protection also needs to be improved so that marine cargo insurance coverage is wider.
AAUI’s encouragement
AAUI encourages general insurance companies to:
- Maintaining quality underwriting
- Strengthening cooperation with exporters and freight forwarder
- Educating the market to increase the use of cargo insurance
With this strategy, it is hoped that the performance of the insurance line will ensure Marine cargo remains stable even though coal exports are weakening.
Officials’ Homes Looted: Can Luxury Collections and Pets Be Covered by Insurance?
The recent looting of official homes has drawn public attention. This case raises questions:Can luxury collections and pets be covered by insurance?
Luxury Collections Are Among Insurable Assets
Vice Chairman Indonesian General Insurance Association (AAUI)Statistics and Research Division,Trinita Situmeang, explaining that collector’s items, such asIron Man statue belonging to Member of Parliament Sahroni, can be categorized as property assets that can be insured.
“Insurance for collectors’ items is similar to motor vehicle insurance. There are specific categories based on the coverage amount, and underwriters will consider specific terms and conditions for these luxury items,” Trinita explained at the AAUI press conference in Jakarta on Monday (September 1, 2025).
Pet Insurance
Responding to looting casesUya Kuya’s cat, General Chairman of AAUIBudi Herawan revealed that currently there are several companies that provide pet insurance products.
Generally, this policy covers animal risks.sick or stolenHowever, Budi added, there is no certainty whether this protection also covers risk of riots or mass looting.
Viral Looting Case
- Saturday, August 30, 2025 → House of Members of the Indonesian House of Representatives Ahmad Sahroni in Tanjung Priok, looting was carried out by residents. The incident went viral after residents ran off with the goods.Iron Man statues, luxury watches, and even damaged cars.
- Similar cases also hit the house of a member of the Indonesian House of RepresentativesSurya Utama alias Uya Kuya, who admitted that his pet cat was also looted.
Hundreds of Billions Paid for Cancer and Heart Diseases: Proof That Insurance is So Important!
PT MSIG Life Insurance Indonesia Tbk (MSIG Life)reported payments for health claims and deaths with fantastic values, reachingRp. 480 billion. The latest data shows that cancer and heart attacks became the largest contributor to the increase in claims.
Health Claims Up 57%
Of the total claims,Rp385 billion came from health claims, which soared 57% compared to the same period last year. This spike is mainly due to the increase in casescritical illness.
- Cancer claims rise22%compared to 2024.
- Heart attack claims skyrocketed almost68%.
- The majority of claims come from groups productive age 30–45 years.
“This data confirms that serious health risks can occur at any time”Even when someone is of productive age, actively working, and raising a family. With insurance protection, families still have financial security,” he explained.Lukman Auliadi, Head of Customer & Marketing MSIG Life, Monday (1/9/2025).
Company Finances Remain Healthy
MSIG Life notesRisk-Based Capital (RBC)as big as1,639.57% per July 2025, far above the OJK minimum requirement of120%This confirms the company’s ability to bear risks and maintain its commitment to paying claims to customers.
Claims Trends in the Life Insurance Industry
According to industry data, throughout January–June 2025:
- Total life insurance claims: Rp. 72.47 trillion, given to 5.01 million beneficiaries.
- This figure is down 6.7%compared to last year, mainly due to a decrease in claimsPartial Withdrawal.
- Health claims actually rose by 3.2%to Rp. 12.20 trillion.
- Health claims individually jumped 25.5% → Rp9.56 trillion.
- Health claims group down 37.2% → Rp2.64 trillion.
Increased claims due to cancer and heart attacksThis is an alarming situation for the public, especially the productive age generation. With medical costs continuing to rise, health and life insurance are no longer an option, but an essential necessity to protect the family’s financial stability.
5 Tough Challenges of Credit Insurance for Online Loan Companies: High Risk but Tempting Potential
Industryfintech P2P lending (pinjol)continues to grow as a financing alternative for MSMEs and unbanked individuals. However, behind this significant opportunity, there are a number of serious challenges for general insurance companies seeking to market their products.credit insurance for online loans.
According to President Director of PT Asuransi Asei Indonesia, Dody Achmad Sudiyar Dalimunthe, at least there are five main challenges to face:
1. Moral Hazard Risk
Potential risks arise from both borrowers and lenders. Because this ecosystem is relatively new, oversight is still developing.
2. Data Limitations & Transparency
The lack of detailed data on debtor quality often hampers the accuracy of risk assessments.
3. High NPL (Non-Performing Loan)
The default rate for online loans is relatively higher than for bank loans, thus increasing the risk for lenders and insurers.
4. Regulations Still Developing
The credit insurance business model for online loans is still being discussed by regulators and associations. This means that the products offered must strictly comply with regulations to remain safe and legal.
5. Reinsurance Support Needs
Because its risk profile is different from conventional credit, reinsurance is important to strengthen the capacity and risk mitigation of insurance companies.
Huge Potential for Loan Insurance
Despite the challenges, Dody emphasized that the potential for loan insurance is very promising. Insurance can play a role in protecting lenders from the risk of default while increasing public trust in the lending ecosystem.
“Insurance can support the growth of financial inclusion, maintain the quality of fund distribution, and strengthen the P2P lending ecosystem,” he said.
Asei Indonesia itself is open to collaborating with lending platforms, but will be selective by considering:
- Corporate governance,
- Quality of loan portfolio,
- Compliance with OJK regulations.
Bad Debt Trend Begins to Decline
Interestingly, OJK data shows that as of June 2025 the level of bad credit TWP90 get off from 3.19% (May) become 2.85% (June) However, the OJK emphasized that it will continue to maintain strict oversight, especially for online loan providers with a TWP90 above 5%.
Credit insurance for online loans is like a double-edged sword: full of risks, but holding great potential as a source of new business in the digital age. With the right strategy, the insurance industry can play a role in strengthening the lending ecosystem while promoting national financial inclusion.
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These recent events and data underscore the critical role of insurance as a financial protection instrument. From personal assets and health to complex business risks, insurance not only provides security but also underpins economic stability. With increasing public awareness, regulatory support, and product innovation, the insurance industry in Indonesia continues to move forward, facing challenges while opening up significant new opportunities.
