{"id":6352,"date":"2024-11-25T08:23:37","date_gmt":"2024-11-25T01:23:37","guid":{"rendered":"https:\/\/ligaasuransi.com\/?p=6352"},"modified":"2025-01-03T15:45:05","modified_gmt":"2025-01-03T08:45:05","slug":"jasindo-optimis-kenaikan-ump-2025-dorong-pertumbuhan-densitas-asuransi-dan-update-7-berita-asuransi-di-indonesia","status":"publish","type":"post","link":"https:\/\/ligaasuransi.com\/en\/jasindo-optimis-kenaikan-ump-2025-dorong-pertumbuhan-densitas-asuransi-dan-update-7-berita-asuransi-di-indonesia\/","title":{"rendered":"Jasindo Optimistic that the 2025 UMP Increase Will Encourage Growth in Insurance Density: And Update on 7 Insurance News in Indonesia"},"content":{"rendered":"

Liga Asuransi<\/span><\/a> – The insurance industry in Indonesia is moving dynamically, facing challenges while taking advantage of opportunities that present themselves amidst economic and technological changes. With optimism regarding the increase in the 2025 UMP and increasingly widespread digitalization, this sector has the potential to record significant growth in insurance penetration and density. This article will discuss the latest news from the world of insurance, including strategic steps by insurance companies, technological innovations that encourage market penetration, and promising future opportunities. Enjoy reading this important summary of the development of the insurance industry in Indonesia and the world.<\/span><\/p>\n

Asuransi Bintang Tbk Officially Transfers Sharia Business Unit, OJK Revokes Operational License<\/span><\/h3>\n

Jakarta, 21 November 2024<\/b> \u2013 PT Asuransi Bintang Tbk (ASBI) officially transferred its sharia business unit portfolio. This ended the journey of the sharia business unit (UUS) in the general insurance company, which was marked by the revocation of its operational permit by the Financial Services Authority (OJK).<\/span><\/p>\n

According to the OJK’s official announcement, Bintang Insurance has completed the entire process of transferring its sharia membership portfolio. With the completion of this process, management submitted an application to close the UUS permit.<\/span><\/p>\n

“The Financial Services Authority has stipulated Decree of Members of the OJK Board of Commissioners Number KEP-642\/PD.02\/2024 on November 7 2024 regarding the revocation of the permit to establish a Sharia Unit at PT Asuransi Bintang Tbk,” as stated on the official OJK website.<\/span><\/p>\n

No Longer Operating with Sharia Principles<\/b><\/p>\n

With this decision, PT Asuransi Bintang Tbk is prohibited from carrying out business activities based on sharia principles. This step makes Bintang Insurance one of 12 insurance companies that have transferred their sharia business portfolio.<\/span><\/p>\n

However, OJK confirmed that 29 other companies would continue their sharia business. Mirza Adityaswara, Deputy Chair of the OJK Board of Commissioners, explained that all insurance companies are required to complete the UUS separation process before the 2026 deadline.<\/span><\/p>\n

“OJK continues to monitor the company’s readiness to implement the Sharia Unit Separation Work Plan (RKPUS), so that the company has sufficient time for the spin-off before the deadline,” said Mirza at the September 2024 Board of Commissioners Meeting.<\/span><\/p>\n

Shariah Unit Separation Options<\/b><\/p>\n

Based on POJK Number 11 of 2023, companies have two options to separate their sharia units:<\/span><\/p>\n

    \n
  1. Establishing a new company<\/b> in the form of sharia insurance or sharia reinsurance, followed by portfolio transfer from UUS to the new entity.<\/span><\/li>\n
  2. Transferring the entire membership portfolio<\/b> UUS to sharia insurance or sharia reinsurance companies that already have operational permits.<\/span><\/li>\n<\/ol>\n

    These two methods aim to ensure that companies continue to comply with regulations without reducing protection for insurance participants.<\/span><\/p>\n

    The Future of the Sharia Insurance Industry<\/b><\/p>\n

    This transfer and spin-off process is an important step in encouraging the independence of the sharia insurance business in Indonesia. With a mature strategy, it is hoped that this industry will continue to develop and make a significant contribution to the sharia-based economy.<\/span><\/p>\n

    Bintang Insurance’s move to close its sharia unit reflects the dynamics in the insurance industry. Going forward, a focus on regulatory compliance and product innovation is expected to be key to growth in this sector.<\/span><\/p>\n

    Source : <\/span>https:\/\/www.cnbcindonesia.com\/market\/20241121093608-17-589919\/ojk-cabut-izin-usaha-unit-syariah-asuransi-bintang<\/span><\/a>\u00a0<\/span><\/p>\n

     <\/p>\n

    Digital Technology Encourages Insurance Penetration in Indonesia, OJK Targets 3.2% by 2027<\/span><\/h3>\n

    Jakarta, 22 November 2024<\/b> \u2013 Digital technology is the main key in increasing insurance penetration in Indonesia. In the 2023-2027 insurance development and strengthening roadmap, the Financial Services Authority (OJK) targets the domestic insurance penetration rate to reach 3.2% in 2027, up from the current position.<\/span><\/p>\n

    Iwan Pasila, Deputy Commissioner for Supervision of Insurance, Guarantees and Pension Funds at OJK, emphasized that the role of digital technology is not only limited to cost efficiency, but also to mitigating broader risks.<\/span><\/p>\n

    “The impact of digital technology support can be optimized, especially in reaching more market segments and improving customer experience,” said Iwan when interviewed, Friday (22\/11\/2024).<\/span><\/p>\n

    Closer to Customers Through Digitalization<\/b><\/p>\n

    Iwan explained that digital technology allows insurance companies to get closer to customers. With digitalization, insurance services can be faster, easier and more efficient.<\/span><\/p>\n

    “Digitalization helps insurance companies penetrate market segments that were previously difficult to reach using conventional methods, such as brokers or agencies. This technology also allows for significant operational cost savings,” he said.<\/span><\/p>\n

    For example, in group health insurance products, the development of digital connections through Application Programming Interfaces (APIs) allows insurance companies to integrate medical services in real time. This makes the claims and service process easier and more transparent.<\/span><\/p>\n

    Reducing Dependence on Traditional Roles<\/b><\/p>\n

    Digital transformation is also changing the operational landscape in the insurance industry. According to Iwan, technology allows companies to reduce dependence on traditional intermediaries such as insurance brokers.<\/span><\/p>\n

    “Technological developments enable medical information and related services to be accessed directly by customers via digital connections. This makes services more feasible without having to go through intermediaries,” he added.<\/span><\/p>\n

    Towards an Inclusive Insurance Future<\/b><\/p>\n

    With the roadmap that has been designed, OJK is optimistic that digitalization will open up new opportunities in the insurance sector. Technology is projected to be able to expand service coverage to communities previously untouched by insurance.<\/span><\/p>\n

    Through collaboration between regulators, insurance companies and technology providers, the vision to achieve insurance penetration of 3.2% by 2027 is expected to be realized. With the right strategy, digital technology will not only strengthen efficiency, but also ensure that the benefits of insurance can be felt by more Indonesians.<\/span><\/p>\n

    Source : <\/span>https:\/\/finansial.bisnis.com\/read\/20241122\/215\/1818169\/ojk-ungkap-peran-penting-transformasi-digital-untuk-penetrasi-asuransi-dalam-negeri<\/span><\/a>\u00a0<\/span><\/p>\n

     <\/p>\n

    Jasindo is Optimistic that the 2025 UMP Increase Will Encourage Growth in Insurance Density<\/span><\/h3>\n

    Jakarta, 20 November 2024<\/b> \u2013 PT Asuransi Jasa Indonesia (Jasindo) welcomes optimism regarding the plan to increase the provincial minimum wage (UMP) in 2025. This increase is believed to have a positive impact on increasing insurance density, which reflects the average public expenditure on insurance products.<\/span><\/p>\n

    Jasindo’s Director of Business Development, Diwe Novara, explained that the previous trend of increasing the UMP had shown a positive relationship with the growth in insurance density. For example, in 2024, an average increase in the UMP of 3.5% will succeed in driving insurance density growth to 7.2%.<\/span><\/p>\n

    “Insurance density in September 2024 was recorded at IDR 2.08 million, an increase from IDR 1.94 million in 2023. This shows the real impact of the increase in the UMP on the community’s ability to allocate funds for insurance,” said Diwe.<\/span><\/p>\n

    Challenge: Insurance Literacy and Inclusion<\/b><\/p>\n

    However, Diwe highlighted that increasing insurance density does not necessarily increase insurance inclusion. Based on 2022 data, the insurance literacy rate reached 31.72%, while insurance inclusion was only 16.63%. This means that even though people understand insurance, not all of them buy insurance products.<\/span><\/p>\n

    “The increase in the UMP creates greater financial space, but does not automatically encourage people to buy insurance. This is caused by low levels of public trust, products that are not yet relevant to their needs, and limited purchasing access,” he explained.<\/span><\/p>\n

    Jasindo Strategy: Socialization and Innovation<\/b><\/p>\n

    Overcoming this challenge, Jasindo continues to strengthen its product and service outreach strategy to the community. The Jasindo team spread throughout Indonesia focuses on market penetration, both to companies and individuals.<\/span><\/p>\n

    “We are taking a direct approach to increase public awareness of the importance of insurance. Apart from that, Jasindo is also trying to develop products that are more relevant and easily accessible, so that people feel comfortable and trust our services,” added Diwe.<\/span><\/p>\n

    The Future of Insurance Density<\/b><\/p>\n

    With continued intensified efforts, Jasindo is optimistic that the 2025 UMP increase can provide momentum for the growth of the insurance industry in Indonesia. It is hoped that the increase in density will not only occur in numbers, but also in the quality of penetration and product relevance in society.<\/span><\/p>\n

    “We believe that collaboration between product innovation, massive outreach and government policy can create an inclusive and sustainable insurance ecosystem,” he concluded.<\/span><\/p>\n

    Source : <\/span>https:\/\/finansial.bisnis.com\/read\/20241122\/215\/1817834\/jasindo-ungkap-dampak-kenaikan-ump-2025-bagi-asuransi-dorong-densitas<\/span><\/a>\u00a0<\/span><\/p>\n

     <\/p>\n

    The Global Insurtech Market is Projected to Grow Rapidly to IDR 1,218 Trillion<\/span><\/h3>\n

    Jakarta, 22 November 2024<\/b> \u2013 Insurance technology market or <\/span>insurtech<\/span><\/i> The global market is on a rapid growth path. According to Technavio’s latest report, this industry is expected to reach a value of US$77.41 billion (equivalent to IDR 1,218 trillion) in the period 2024 to 2028, with a compound annual growth rate (CAGR) of 42.35 percent.<\/span><\/p>\n

    Increasing business efficiency and close collaboration between investors and insurtech companies are the two main factors driving this growth.<\/span><\/p>\n

    Advanced Technology Drives Innovation<\/b><\/p>\n

    Technology like <\/span>machine learning<\/span><\/i> And <\/span>Artificial Intelligence<\/span><\/i> (AI) is the backbone in the development of insurtech services. With this technology, companies can deliver better personalized solutions to meet customers’ specific needs.<\/span><\/p>\n

    In addition, tracking and monitoring features are available <\/span>real-time<\/span><\/i> enabling more careful risk management and data-based decision making. This adds value to insurance companies in providing a better customer experience and increasing operational efficiency.<\/span><\/p>\n

    Challenges Amidst Optimism<\/b><\/p>\n

    However, the adoption of this advanced technology is not without obstacles. The Technavio report notes that high initial investment costs are one of the main obstacles. Additionally, insurance staff require special training to understand and make optimal use of technology.<\/span><\/p>\n

    “Integrating technology with banking and brokerage services requires technical expertise that currently remains a challenge for many companies,” the report wrote.<\/span><\/p>\n

    However, the insurtech market continues to show high optimism, especially because of its potential to revolutionize the way insurance companies operate.<\/span><\/p>\n

    The Future of Insurtech: Innovate or Get Left Behind<\/b><\/p>\n

    Technavio said that adaptation to advanced technology will be a key factor in the success of insurance companies in facing competition in this rapidly growing industry.<\/span><\/p>\n

    For companies that want to stay relevant, technological innovation is no longer an option, but a necessity. As the insurtech market continues to develop, industry players are expected to take advantage of opportunities to create services that are more efficient, innovative and relevant to the needs of today’s customers.<\/span><\/p>\n

    Source : <\/span>https:\/\/mediaasuransinews.co.id\/ekonomi-digital\/insurtech\/pasar-insurtech-global-diproyeksikan-tembus-rp1-218-triliun-di-2028\/<\/span><\/a>\u00a0<\/span><\/p>\n

     <\/p>\n

    Challenges and Opportunities for the General Insurance Industry in 2025<\/span><\/h3>\n

    Jakarta, 19 November 2024<\/b> \u2013 Indonesia’s general insurance industry faces various challenges towards 2025, although it continues to show positive growth. Data as of September 2024 recorded the aggregate value of the industry reaching IDR 1,929 trillion, growing six percent annually (<\/span>year-on-year<\/span><\/i>).<\/span><\/p>\n

    Deputy Chair of the Indonesian General Insurance Association (AAUI) for Inter-Institutional Cooperation, Muhammad Iqbal, said that solid capital support remains the foundation for commercial insurance amidst the downward trend. This was conveyed in the seminar <\/span>Indonesia Economy & Financial Outlook 2025<\/span><\/i> in Jakarta, Tuesday, November 19 2024.<\/span><\/p>\n

    Challenges at Horizon 2025<\/b><\/p>\n

    Iqbal highlighted a number of strategic challenges facing the industry:<\/span><\/p>\n

      \n
    1. Low Penetration and Insurance Density<\/b>
      \n<\/span>Even though the level of public literacy regarding insurance has increased, the gap between literacy and inclusion is still quite large. Many people already know the benefits of insurance but are not yet confident about having it.<\/span><\/li>\n<\/ol>\n

      “This indicates that protection through insurance in Indonesia is not yet a priority need,” said Iqbal.<\/span><\/p>\n

        \n
      1. Digitalization and Technological Innovation<\/b>
        \n<\/span>Digital transformation brings new challenges, especially in product innovation, services and data security. Insurance companies are required to accelerate adaptation to remain relevant and competitive in the technological era.<\/span><\/li>\n
      2. ESG Implementation and Green Business Ecosystem<\/b>
        \n<\/span>Application of principles <\/span>Environmental, Social, and Governance<\/span><\/i> (ESG) is the next challenge. Industry must innovate to support sustainable business, in line with the global trend towards a green economy.<\/span><\/li>\n
      3. Competition and Risk Analysis<\/b>
        \n<\/span>Increasingly tight competition between insurance companies is forcing industry players to improve risk analysis capabilities and operational efficiency.<\/span><\/li>\n
      4. Capital and Governance<\/b>
        \n<\/span>The need to strengthen capital and better corporate governance, including implementing the separation of sharia units, is a major concern ahead of 2025.<\/span><\/li>\n<\/ol>\n

        Factors Driving Optimism<\/b><\/p>\n

        Even though the challenges are quite large, the general insurance industry has a number of driving factors to continue to grow:<\/span><\/p>\n