JAKARTA - The general insurance industry in Indonesia recorded a decline in premiums on the oil and gas insurance (migas) business line throughout 2025 to Rp1.6 trillion from the previous Rp1.7 trillion.
Deputy Chairman of the Engineering Sector of the Indonesian General Insurance Association (AAUI), Diwe Novara, said that the decline occurred in the energy business line, which in the insurance industry is known as offshore energy and onshore energy.
He explained that the oil and gas insurance premium in this segment had decreased by around Rp100 billion compared to the previous year.
"For oil and gas insurance in the line of business industry, we call it offshore energy and onshore energy. So the premium is this year, unfortunately, the premium has decreased. For people who are insured, it is from Rp. 1.7 trillion to Rp. 1.6 trillion," explained Diwe in the EITS 2026 Talk and Relax event, Thursday, March 5.
Despite the decrease in premiums, he assessed that the claim ratio in the oil and gas insurance line was still at a relatively stable level.
According to him, the current claim ratio is in the range of 53 percent and although the contribution of oil and gas insurance to the industry as a whole is still relatively small, this business line still has a significant impact on companies that focus on the sector.
Diwe also revealed that the contribution of oil and gas insurance to the total national general insurance industry premium throughout 2025 is still limited, namely around 1.6 percent of the overall industry premium.
Overall, the performance of the national insurance industry showed improvement in 2025 after recording losses in the previous year and the total industry premium was recorded at Rp. 120 trillion.
"The performance of the national insurance industry in 2025, premium income increased slightly. So we collected Rp. 120 trillion, only increased by Rp. 3 trillion, Alhamdulillah this year we reversed the situation," he said.
He explained that in the previous year the insurance industry had suffered losses even though the premium value was quite large.
"So for the first time the insurance industry has suffered a loss of minus Rp9 trillion from premiums of Rp117 trillion. Well, in 2025 this premium of Rp120 trillion we will return a profit of Rp15 trillion," he said.
However, Diwe assessed that there were still a number of things that needed attention, one of which was related to the size of the reinsurance premium flowing abroad.
He added that out of the total industry premium of Rp. 120 trillion, around Rp. 70 trillion is reinsurance premiums, meaning that around Rp. 50 trillion of insurance premiums still flow abroad or have the potential to become capital flight.
On the other hand, Diwe said that the equity of the insurance industry also increased, although the growth was still relatively limited, namely currently the total equity of the industry is in the range of Rp. 82.8 trillion.
Furthermore, Diwe said that the development of insurance in the oil and gas sector still faces a number of challenges, especially related to the capital capacity of national insurance companies.
According to him, this is important because projects in the upstream oil and gas sector generally have very large and complex investment values, so they require strong insurance protection capacity.
Diwe revealed that out of around 70 general insurance companies that are members of the industry in Indonesia, only around 10 companies have equity above Rp1 trillion.
He added that even among companies with large capital, each has different policies in determining the amount of risk they can bear themselves.
"Therefore, the obligation of the national insurance industry is to maintain trust, then yes, also organically equity or the company's own capital, this insurance company must also be significantly improved," he said.
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