By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
LigaAsuransi
Thursday, Jul 31, 2025
  • What's Hot:
  • Ulas Berita
  • Risk Recommendation
  • Berita Kecelakaan
  • Financial Liability
  • Asuransi Marine Cargo
  • Breaking News
  • Business
    • Marine
      • Asuransi Marine Cargo
      • Asuransi Marine Hull
    • Engineering
      • Asuransi Konstruksi
    • Liability
      • Financial Risk
      • Airport Liability Insurance
      • Asuransi Liability
      • Financial Liability
      • General Liability Insurance
      • Liability Insurance
      • Product Liability Insurance
      • Professional Liability Insurance
      • Public Liability Insurance
    • Property
      • Asuransi Properti
      • Asuransi Banjir
      • Property All Risk
  • Retail
    • Motor Vehicle
    • Life & Health
      • Asuransi Kesehatan
      • Asuransi Jiwa
  • Agrobisnis
  • Bisnis
  • Breaking News
  • LigaAsuransi TV
  • Indonesia
    • 中文
Reading: Breakthrough By OJK: Insurance Inclusion As The Pillar Of Consumer Protection
Subscribe
Font ResizerAa
LigaAsuransiLigaAsuransi
  • Indonesia
  • Home
  • Vehicles Insurance
  • Marine Cargo Insurance
  • Insurance Clause
  • Cyber Risk Insurance
  • General Insurance
  • Golf
  • Risk Recommendation
Search
  • Marines
    • Marine Cargo
    • Marine Hull
    • P&I
    • Shipbuilders
  • Oil and Gas
  • Mining
    • Coal
    • Mining Industry
    • Asuransi Pertambangan
    • Industri Pertambangan
  • Power
    • Asuransi Pembangkit Listrik
  • Infrastructure
  • Commercial
  • Construction
    • Heavy Equipment Insurance
    • Machinery Breakdown Insurance
    • Construction Insurance
  • InsurTech
  • Insurance Update
    • Bedah Polis
    • Bedah Klausul
    • Ulas Berita
    • Tips & Tricks
  • Legal Liability
    • Asuransi Liability
  • Life & Health
  • Indonesia
    • 中文

Trending →

Deadly Tragedy on Indian Roads! Pilgrim Bus Crashes into Gas Truck, 18 Burned to Death: And 7 Shocking Recent Accidents

By Intan Aulia
Wednesday July 30th, 2025

Car Falls into the Sea: Real-Life Examples, Protection Tips, and the Right Insurance Solutions

By Hikmah Herdiana
Tuesday July 29th, 2025

Investment Risks Faced by Chinese Companies in Indonesia and the Role of Insurance as Mitigation

By Intan Aulia
Monday July 28th, 2025

Chinese Companies Enter Indonesian Infrastructure Projects: What Risks Must Be Insured?

By Hikmah Herdiana
Saturday July 26th, 2025

Cyberattacks Are on the Rise! Here’s Why Cyber Insurance Is Important for Companies

By Hikmah Herdiana
Thursday July 24th, 2025
Follow US
©Copyright by Liga Asuransi - PT. L&G Insurance Broker
LigaAsuransi > Blog > Industri Asuransi > Breakthrough By OJK: Insurance Inclusion As The Pillar Of Consumer Protection
Industri Asuransi

Breakthrough By OJK: Insurance Inclusion As The Pillar Of Consumer Protection

Irvan Rahardjo
By Irvan Rahardjo
Published Wednesday March 20th, 2024
551 Views
0 Min Read
Share
SHARE

This article was published on infobanknews.com with the article “Peran OJK meningkatkan Inklusi Asuransi” on December 23, 2023

Liga Asuransi – Insurance inclusion in Indonesia remains low. Data from the Financial Services Authority (OJK) for the year 2023 indicates that despite insurance literacy reaching 31.7 percent, inclusion is still at 16.6 percent. The density and penetration rates of the insurance industry in Indonesia are still below other Southeast Asian countries such as Malaysia, Thailand, and Singapore.

Insurance observer Irvan Rahardjo explains that this aligns with the increase in the number of complaints, where in the previous year of 2022, there were 1,291 complaints related to insurance. This has an impact on public trust in insurance and diminishes the reputation of this industry. Irvan highlights the role of OJK in supervising the financial industry, including insurance.

“OJK was formed to ensure that all activities in the financial services sector can protect consumers and the public. This is stipulated in article 4c of Law No. 21 of 2011,” says Irvan in a webinar titled ‘Anticipating Challenges and Opportunities in the Insurance Industry in 2024’ on Friday, December 22, 2023.

Irvan emphasizes that OJK has three pillars to implement, namely supervision, regulation, and consumer protection. Especially for the last pillar, the principles to be implemented are already outlined in the Law on Non-Bank Financial Industry Supervision (UU P2SK), especially in article 228. An essential aspect of this protection is the provision of adequate education.

“All participants in the financial services sector should educate the public so that our financial literacy and inclusion improve,” he continues.

On the other hand, Irvan also highlights several roles of insurance companies regulated in Law No. 40 of 2014 concerning Insurance. These roles include responsibility for customer losses, the establishment of Guarantee Funds, and the implementation of the rights of policyholders as preferred creditors.

Ivan states that OJK in this period has dared to take many actions that were previously unheard of, including revoking a company’s business license if it is deemed unable to continue its business.

“These steps are not only relieving but also strengthening public confidence in consumer protection,” he adds.

Insurance inclusion refers to the level of participation and involvement of the public in insurance products. More simply, insurance inclusion illustrates how much a population or sector of society can access and benefit from insurance services. In other words, insurance inclusion reflects the extent to which the reach of insurance protection can be felt by the public.

In Indonesia, insurance inclusion measures how much the population can benefit from insurance products, both in the form of life insurance and general insurance. Various factors influence insurance inclusion, such as the level of financial literacy, understanding of the benefits of insurance, and the availability of insurance products that suit the needs of the public.

The Government and financial regulators, such as the Financial Services Authority (OJK) in Indonesia, play a crucial role in promoting insurance inclusion. Steps to enhance insurance inclusion involve:

Financial Education:

Increasing financial literacy among the public to enhance their understanding of the benefits and importance of having insurance policies.

Product Diversification:

Providing a diverse range of insurance products suitable for the needs of various segments of society, including affordable products for low-income groups.

Facilitating Access:

Simplifying public access to information and insurance products, both through conventional and digital media.

Financial Innovation:

Developing innovative and flexible insurance products that can be tailored to the needs of the public.

Supportive Regulations:

Creating regulations that support the development of inclusive insurance products and protect consumer rights.

By implementing these measures, it is expected that insurance inclusion in Indonesia can increase, allowing more people to experience the benefits of financial protection through insurance products. The growth in insurance inclusion also contributes to financial stability and the overall economic well-being of society.

In Indonesia, insurance inclusion highlights the extent to which the public can access and benefit from insurance products. This participation level reflects how widely insurance protection is perceived by the public in their daily lives.

Factors such as financial literacy, understanding the benefits of insurance, and the availability of suitable products play a key role in determining insurance inclusion. The government and financial regulators, such as OJK, are actively involved in efforts to improve insurance inclusion among the public.

Through initiatives such as financial education, product diversification, access facilitation, financial innovation, and supportive regulations, authorities aim to expand public participation in insurance protection. The increased insurance inclusion is expected to not only benefit a broader segment of society but also support overall financial stability. In this way, the hope is that people become more aware and experience better financial outcomes through insurance products.

Conclusion:

This article portrays that insurance inclusion in Indonesia still faces significant challenges. Despite insurance literacy reaching 31.7%, the level of insurance inclusion remains low, at around 16.6%. The increasing number of complaints in the last five years reflects the lack of public trust in the insurance industry. Insurance observer Irvan Rahardjo highlights OJK’s role in overseeing the financial industry, including insurance, and emphasizes the need for adequate education to enhance financial literacy and inclusion.

There is also a spotlight on the role of insurance companies as per the Insurance Law, including responsibility for customer losses and the obligation to uphold policyholders’ rights. Nevertheless, there is an appreciation for OJK’s more proactive actions, such as revoking the business license of companies deemed unable to continue, sending positive signals for consumer protection.

In conclusion, improving insurance inclusion requires collaboration between regulators, insurance companies, and the public. Education, increased transparency, and progressive regulatory measures are key to building public trust and elevating the Indonesian insurance industry to a higher standard.

 


This article is part of the book “BANGKITNYA ASURANSI KAMI” with keynote speaker Professor Muhammad Eddi Purnawan Anggota Badan Supervisi OJK. February 2024. ISBN, Publisher IPB Press. 

The price of this book is IDR 155,000 and can be ordered through ligasuransi.com.

Order Now!

0811-8507-773 (CALL – WHATSAPP – SMS)

TAGGED:asuransi indonesiaIrvan RahardjoOJK Indonesia

Sign Up For Daily Newsletter

Be keep up! Get the latest breaking news delivered straight to your inbox.

By signing up, you agree to our Terms of Use and acknowledge the data practices in our Privacy Policy. You may unsubscribe at any time.
Share This Article
Facebook Whatsapp Whatsapp LinkedIn Threads Copy Link Print
ByIrvan Rahardjo
Follow:
More than 40 years in the insurance world starting from joint venture insurance to being a Director of BUMN Insurance; Independent Commissioner of AJB Bumiputera 1912 and Asuransi SOMPO Indonesia. Currently serving as President Commissioner at L&G Risk Insurance Broker.
Previous Article Finalization Of Jiwasraya Insurance Restructuring Program
Next Article 7 Selections of Fatal Accident News 2024 in Indonesia – 3rd Week of March
- Advertisement -
Ad image

Latest News

Deadly Tragedy on Indian Roads! Pilgrim Bus Crashes into Gas Truck, 18 Burned to Death: And 7 Shocking Recent Accidents
Berita Kecelakaan
Wednesday July 30th, 2025
41 Views
Car Falls into the Sea: Real-Life Examples, Protection Tips, and the Right Insurance Solutions
Asuransi Mobil
Tuesday July 29th, 2025
52 Views
Investment Risks Faced by Chinese Companies in Indonesia and the Role of Insurance as Mitigation
Bisnis
Monday July 28th, 2025
58 Views
Chinese Companies Enter Indonesian Infrastructure Projects: What Risks Must Be Insured?
Bisnis
Friday July 25th, 2025
81 Views
Cyberattacks Are on the Rise! Here’s Why Cyber Insurance Is Important for Companies
Asuransi Cyber
Thursday July 24th, 2025
72 Views
Insurance Compliance for Chinese Companies in Indonesia: Avoiding Legal and Financial Risks
Bisnis
Wednesday July 23rd, 2025
71 Views
Water Supply Project Tenders: Understand the Risks and Protect Yourself with the Help of an Insurance Broker
Asuransi Konstruksi
Tuesday July 22nd, 2025
87 Views
Uncovering the Challenges Behind the Insurance Claims Process! Turns Out This Is What Often Hinders Fast Payments to Customers: And 7 of the Most Updated and Comprehensive Insurance News
Ulas Berita
Monday July 21st, 2025
114 Views
Foreign Investment on the Rise! The Importance of Project Protection for Chinese Investors in Indonesia
Bisnis
Friday July 18th, 2025
99 Views
Plane Catches Fire After Takeoff in London, Killing 4 Instantly: And 7 Shocking Recent Accidents
Berita Kecelakaan
Thursday July 17th, 2025
74 Views

Related ↷

7 Selected Fatal Accident News – December

Thursday December 29th, 2022

7 Choices of Indonesian Insurance News January 2024 – Week 1

Tuesday January 2nd, 2024

7 Selections of 2023 Fatal Accident News in Indonesia – Week 2 of July

Wednesday July 12th, 2023

7 Selections of Indonesian Insurance News April 2024 – Week 5

Monday April 29th, 2024
  • Advertise with us
  • Newsletters
  • Complaint
  • Deal
Stay tuned for a blend of captivating content that not only informs but also inspires you to navigate the ever-evolving landscape of technology, marketing, and market trends!
LigaAsuransi
  • Asuransi Marine Cargo
  • Asuransi Konstruksi
  • Broker Asuransi
  • InsurTech
  • Property

©Copyright 2025 by Liga Asuransi – PT. L&G Insurance Broker