OJK: Premium Resurance Reaches IDR 5.46 Trillion As Of February 2025

JAKARTA - The Chief Executive of the Insurance, Guarantee and Pension Fund Supervision (PPDP) of the Financial Services Authority (OJK) Ogi Prastomiyono stated that the insurance premium income reached IDR 5.46 trillion as of February 2025, a decrease of 20.36 percent on an annual basis or year-on-year (yoy).

He stated that last year the reinsurance industry also experienced a resurance deficit of IDR 12.10 trillion.

"Meskipun demikian, di akhir tahun 2025, premi resurance diperkirakan akan kembali menunjukkan angka positif," kata Ogi Prastomiyono di Jakarta, dikutip Antara, Minggu, 27 April.

He conveyed that the reinsurance industry is facing increasingly complex market dynamics, related to the hardening market and limited domestic reinsurance capacity.

He said the hardening market, especially still occurs in sectors such as property and engineering.

"Meanwhile, domestic reinsurance capacity is still limited to accommodate large risks, so you have to rely on overseas reinsurance," said Ogi.

He said that currently the portion of reinsurance abroad is 40 percent of the total insurance premium, so it is feared that the increase in the import rate of the United States (US) and other trade policies could affect the premium cost of insurance.

To reduce dependence on foreign reinsurance, OJK also requires domestic reinsurance companies to increase capital in order to bear great risks independently and reduce dependence on foreign reinsurance companies.

"In addition, increasing the capacity of experts in the field of assessment and risk management will strengthen the company's ability to assess and manage risks more accurately. As another option, the formation of large domestic reinsurance companies can be a solution," said Ogi.

OJK noted that as of February 2025, there were 106 insurance and reinsurance companies out of a total of 144 companies operating in Indonesia that had met the minimum number of equity required to be met no later than 2026.