Health insurance claims in the insurance industry increased in 2023 and the Financial Services Authority (OJK) forecasts that they will continue to climb this year.
Indonesia Financial Group (IFG), a state-owned insurance holding company, is collaborating with Indonesia Re to accelerate the standardisation of technical data in the insurance industry through an "Insurance Data Taxonomy Cooperation" agreement.
The non-life insurance market posted a 15.3% jump in premium income to IDR103.86tn ($6.7bn) in 2023, according to the General Insurance Association of Indonesia (AAUI). This growth was supported largely by the engineering insurance branch.
The state-owned insurance holding company, IFG, has announced that it will acquire 70% of the shares of Asuransi Jiwa Inhealth Indonesia (Mandiri Inhealth). The stake is to be acquired through Asuransi Jiwa IFG (IFG Life), raising the group's total holding in Asuransi Jiwa Inhealth to 80%.
The Financial Services Authority (OJK) has said that compulsory insurance is mandated under the Financial Sector Development and Strengthening (P2SK) law. The regulator hopes that compulsory insurance could quickly take effect.
The insurance industry in Indonesia chalked up total premium income of IDR320.88tn ($20.50bn) in 2023, an increase of 3.02% over 2022, according to the Financial Services Authority (OJK).
The new equity requirements for Indonesia's takaful and retakaful sector will encourage healthy competition and spur consolidation, says Fitch Ratings, with some weaker insurers likely to fall short of the requirements.
The Indonesian Life Insurance Association ( AAJI ) has said that improvements in the real economic sector would have a positive impact on the insurance industry.
Profitable business from the parent group, Pertamina, remains the key contributor to the strong operating performance of Asuransi Tugu Pratama Indonesia (TUGU), says AM Best. In addition, investment income is a positive contributor to TUGU's net profit.
Growth in the Shariah insurance industry in Indonesia is forecast to be stagnant over the next three years. As it becomes more structured under various new regulations, the shariah insurance sector is predicted to grow significantly in the fourth year.