Jakarta Non-Banking Financial Industry Supervisor, Financial Services Authority (OJK), said the trend for 2023 is that a significant number of global insurance companies are interested in investing in Indonesia.
Ogi Prastomiono said at a press conference on the results of the December 2022 Monthly Committee meeting on Monday (February 1, 2023) the start of the year-end assessment of the financial services sector and OJK policy.
“While actual regulations allow global companies to have up to 80% ownership, they must be Indonesian entities, and companies that need additional capital based on their growth needs can provide overseas companies to partners with large capital. ” said Auggie.
From January to November 2022, cumulative premium income in the insurance sector was recorded at IDR 280.24 trillion, up 0.44% year-on-year.
OJK recorded general premium accumulation which increased at a rate of 14.06% over the same period, reaching IDR 106.91 trillion by November 2022.
However, cumulative premiums for life insurance declined by -6.45% annually compared to the previous period, reaching IDR 173.33 trillion by November 2022.
“This is because we have published SE OJK 05 for 2022 amending unit link sales that have become more stringent and implementing new regulations and enforcement will come into force in March 2023”, they said.
He expects premium hikes to continue in 2023 as post-pandemic economic growth is likely to remain positive at 5% or more.
In addition, Indonesia’s insurance penetration rate is still quite low compared to other countries, and there are still opportunities to encourage the development of insurance, and there is a lot of business activity in the form of companies and individuals that are not yet covered by insurance. complete.
“It will be a community need”, he said.
He also pointed out that OJK’s outstanding value of receivable loans reached IDR 409.5 trillion in November 2022, up 12.96 per cent year-on-year. Year. Hui.
The Deposit Insurance Corporation (LPS) now has new mandates as the insurance guarantor. As is known, there is currently no regulation regulating an LPS as a guarantor of an insurance policy.
Finance Minister Sri Mulyani thanked the DPR for ratifying the Law on Development and Strengthening of the Financial Sector (RUU PPSK) to become the P2SK Act.
“It is a completely different mandate than the relatively established deposit insurance institutions of banks,” Mrs Sri Mulyani told the DPR on Thursday (15/12).
According to him, the LPS’ additional obligation to insure the insurance industry could trigger a stable long-term funding source. Insurance guarantees are also a form of government that gives the insured a feeling of protection from moral hazard.
Moral hazard can be described as a phenomenon in which individuals take more risks because others bear the cost of those risks. A party has not entered into a contract in good faith or has provided false information about its assets, liabilities or creditworthiness.
Even if passed, the LPS did not become the insurance guarantor immediately after the PPSK Act was ratified. Mrs. Sri Mulyani said.