Indonesian insurers' assets hit IDR1,126.26t, up 1.14%

Both its life and general insurance segments grew YoY.

At the end of June, Indonesian insurers’ assets reached IDR1,126.26t, marking a 1.14% year-on-year (YoY) increase from IDR1,113.58t last year, according to recent data from the Otoritas Jasa Keuangan (OJK). 

The commercial insurance sector saw a 2.38% YoY increase in total assets, now standing at IDR907.39t. Accumulated premium income for commercial insurance reached IDR165.18t, an 8.46% rise YoY. 

This includes life insurance premiums, which grew by 2.29% YoY to IDR87.99t, and general insurance and reinsurance premiums, which surged by 16.46% to IDR77.20t.

The capitalisation of the commercial insurance industry remains strong, with the life insurance sector recording a Risk-Based Capital (RBC) ratio of 431.43% and the general insurance sector at 320.70%, both well above the 120% threshold.

In contrast, the non-commercial insurance sector, including BPJS Kesehatan and BPJS Ketenagakerjaan, saw a 3.69% year-on-year decline in total assets, now valued at IDR218.87t.

The pension fund industry showed solid growth, with total assets reaching IDR1,448.28t, a 7.58% increase from IDR1,346.21t in June 2023. 

Voluntary pension programs grew by 3.91% to IDR372.70t, whilst mandatory pension programs saw an 8.91% increase, with total assets now at IDR1,075.58t.

Guarantee companies also experienced growth, with assets rising by 8.01% to IDR47.29t.

In regulatory measures, OJK imposed business activity restriction sanctions on an insurance broker on June 26, 2024, for failing to meet governance and capital requirements. 

Additionally, 11 insurance companies still need to appoint company actuaries or submit candidates for fit and proper assessments. 

OJK is closely monitoring these companies, issuing warning sanctions and requesting action plans to ensure compliance.

Between January and June 2024, OJK issued 916 administrative sanctions to financial services institutions in the PPDP sector, including 602 warning sanctions, 6 business activity suspension sanctions, and 308 fines.

OJK is also actively involved in the special supervision of eight insurance and reinsurance companies to help them improve their financial conditions. 

Furthermore, 15 pension funds are under special supervision, with two currently in the process of submitting dissolution applications to OJK.