IFG Strengthens Business Transformation to Face Insurance Industry Challenges 2026
JAKARTA - Indonesia Financial Group (IFG) is committed to strengthening business transformation to face the increasingly complex dynamics of the insurance and reinsurance industry by 2026.
The Corporate Secretary of the Indonesia Financial Group Denny S Adji said that the insurance and surety industry is currently facing a number of challenges that come from macroeconomic conditions and changes in regulator policies that encourage the strengthening of the industry's structure.
According to him, exchange rate pressure which increases the volatility of the financial market as well as slowing down people's purchasing power and UMKM activities are factors that need to be anticipated by financial industry players, including the insurance and guarantee sectors.
"To respond to these various dynamics, IFG in 2026 will focus on strengthening competitiveness and strengthening business execution through the group transformation agenda," said Denny in an official statement, written Sunday, March 15.
In addition, said Denny, the industry is also facing pressure from the claim ratio, especially in the health insurance line.
Based on industry data, the growth of health insurance claims was recorded at around 22 percent, much higher than the growth of premiums which was only around 3 percent, thus putting pressure on the profitability of insurance companies.
Therefore, through the Solidify Group Transformation theme, IFG will encourage a number of strategic steps, including strengthening the organization through human resource transformation and strengthening the company's culture which is increasingly customer-oriented, in line with the spirit of service in the Danantara Indonesia ecosystem.
IFG will also optimize the performance of government assignment programs and strengthen business synergies within the group through the development of various distribution channels, both direct channels, corporations, agents, and digital platforms.
"Through these steps, IFG hopes to continue to strengthen the role of the insurance and reinsurance industry as an important instrument in supporting economic stability and real sector growth in Indonesia," said Denny.
For information, on a consolidated basis, IFG's revenue exceeded the Company's Work Plan and Budget (RKAP) 2025 target with a realization of around IDR 11.47 trillion from the target of IDR 11.21 trillion, or reaching around 102 percent of the target set.
The figure is still unaudited as the process of finalizing the consolidated financial statements.