Contracted 2.34 Percent, OJK Records Premium Income In The Insurance Sector Reaches IDR 117.13 Trillion

Illustration. (Photo: Doc. Antara)

JAKARTA - The Financial Services Authority (OJK) recorded an accumulation of premium income for the insurance sector from January to June 2023 to reach IDR 177.13 trillion.

"This number contracted by 2.34 percent compared to the same period the previous year where in July 2022 it was recorded at 1.31 percent," said the Chief Executive of the Insurance, Guarantee and Pension Supervisory Board concurrently Member of the OJK Board of Commissioners Ogi Prastomiyono at the August 2023 RDK press conference which was held virtually, Tuesday, September 5.

He added that the growth in the accumulated life insurance premium contracted by 7.85 percent yoy with a value of IDR 102.12 trillion as of July 2023 was driven by the normalization of premium income performance in the Insurance Product Business Line Linked to Investment or PAYDI.

On the other hand, the accumulation of general insurance premiums and reinsurance grew positively 6.3 percent yoy to 75.02 trillion. In general, he said, capital in the insurance industry is well maintained, where for the life insurance industry and general insurance it records Risk Based Capital (RBC) above the threshold of 460.32 percent and 311.53 percent, respectively.

"Far above the threshold by 20 percent," added Ogi.

As for social insurance, BPJS Kesehatan's total assets as of July 2023 reached IDR 118.95 trillion or grew 14.58 percent yoy. In the same period, BPJS Ketenagakerjaan's total assets reached IDR 699.79 trillion or grew 14.09 percent yoy.

Meanwhile, the pension fund was recorded at 7.12 percent yoy with an asset value of IDR 360.08 trillion.

"In the guarantee company, in July 2023 the asset value was recorded to have increased to Rp14.21 trillion from the previous month which was recorded at Rp13.76 trillion with an asset value of Rp44.64 trillion," concluded Ogi.