OJK Says There Are Still 7 Insurance Companies In Special Supervision

Insurance illustration (Photo: dock. unsplash)

JAKARTA - The Financial Services Authority (OJK) noted that up to now there are still 7 insurance companies under special supervision.

"Currently, there are still 7 (seven) insurance companies that are under special OJK supervision," said OJK Chief Executive of Insurance, Guarantee and Pension Funds (PPDP) Ogi Prastomiyono, in a written answer from RDKB February, quoted Wednesday, March 6, 2024.

Ogi said that in general the reason the company was included in special supervision was because it was unable to meet the minimum amount of risk based capital (RBC) of 120 percent, minimum equity of IDR 100 billion and investment adequacy ratio of at least 100 percent.

Previously, the OJK reported that commercial insurance industry assets in January 2024 reached IDR 903.07 trillion, an increase of 3.87 percent. In terms of commercial insurance performance, premium income in January 2024 reached IDR 36.25 trillion, or an increase of 18.63 percent (yoy) compared to December 2023 of around 3.02 percent (yoy).

Likewise, the premium for life insurance also grew by 8.24 percent (yoy) as of January 2024 with a value of Rp. 17.34 trillion, and the premium for general insurance and reinsurance grew by 18.91 trillion or 30.09 percent (yoy).

"In general, capital in the insurance industry remains solid, with the life insurance and general insurance industry recording Risk Based Capital (RBC) which was above the threshold of 447.68 percent and 344.32 percent (December 2023: 457.98 percent and 363.10 percent), well above the threshold of 120 percent," said Ogi.

For social insurance, BPJS Kesehatan's total assets as of January 2024 were recorded at IDR 106.20 trillion, a decrease of 7.19 percent compared to January 2023's position of IDR 114.43 trillion.

In the same period, BPJS Ketenagakerjaan's total assets reached IDR 738.05 trillion, or grew by 13.08 percent (yoy). BPJS Ketenagakerjaan's assets consist of assets related to the insurance program of IDR 108.74 trillion, an increase of 11.92 percent and assets related to the pension program of IDR 629.31 trillion, an increase of 13.28 percent.

On the part of the pension fund industry, voluntary pension fund assets per January 2024 grew 6.75 percent (yoy) with an asset value of IDR 370.28 trillion compared to IDR 346.86 trillion in January 2023. In the guarantee company, the asset value grew 18.91 percent (yoy) with a value of IDR 46.65 trillion compared to IDR 39.23 trillion in January 2023.