Indonesia: OJK to increase auto & property premiums
Source: Asia Insurance Review | Jan 2017
Indonesia’s Financial Services Authority (OJK) will increase motor vehicle and property insurance premium rates with effect from this month.
Mr Firdaus Djaelani, Chief Executive of Non-bank Financial Industry at OIK, told the local media that the rates have to be revised to adjust for inflation. The last time the rates were adjusted was in mid-2015. He assessed the rates prevailing over the last two years as no longer appropriate to reflect the risks covered by insurers.
The tariff revisions have been discussed for several months, with the Indonesian General Insurance Association (AAUI) collecting data last year for OJK to make a decision.
Mr Firdaus said that new rates would vary depending on risk. For instance, in motor insurance, the rate depends on the type of vehicle, year of production, area of operation and the price of the vehicle.