The Indonesian Life Insurance Association (AAJI) has announced that the total revenue of the sector amounted to IDR223.0tn ($14.72bn) in 2022, representing a drop of 7.5% compared to 2021, indicating that revenue was under pressure.
The Financial Services Authority (OJK) is seeking to improve financial literacy and inclusion by issuing an amended regulation for consumers and the public.
The premium production of insurance brokers who provide digital insurance services reached IDR3.88tn ($254m) in 2022, surging by 112% over 2021.
Japan is ranked second in a new Swiss Re study on life and health insurance availability, accessibility and affordability (three 'A's). Japan's aggregate inclusion score is 0.66, behind the 0.67 score for the US.
The Financial Services Authority (OJK) continues to strengthen the insurance industry by ensuring that industry players are ready to implement the Statement of Financial Accountant Standards (PSAK) 74 concerning Insurance Contracts starting 1 January 2025.
Inflation and Covid-19 are considered to be factors that could trigger an increase in claims in the insurance and reinsurance industry in 2023, according to Ms Maria Elvida Rita Dewi, finance director of Reasuransi Indonesia Utama (Indonesia Re).
Indonesian reinsurers are influenced by lower sovereign ratings, shallower financial markets and a less developed insurance industry, compared with peers in Thailand and Malaysia, says Fitch Ratings.
Indonesian President Mr Joko Widodo (Jokowi) has urged the Financial Services Authority (OJK) to step up the monitoring of insurance companies, online loans, and investments in the wake of several public complaints received of losses in recent periods
CNBC Indonesia Research has rated 15 conventional life insurance companies as the best and strongest in 2023 in Indonesia.
The takaful sector's contribution in Indonesia will grow by 5%-10% in 2023, further supported by the developing Islamic finance ecosystem, Fitch Ratings forecasts. However, long-term challenges persist due to very low awareness of and demand for takaful products.