Central OJK Supervises 11 Troubled Insurance Companies

JAKARTA - Chief Executive of Insurance, Guarantee and Retirement Supervisory Funds of the Financial Services Authority (OJK) Ogi Prastomiyono said there were 11 insurance companies specifically supervised.

"Currently, there are 11 companies that have problems with insurance companies, so special supervision is carried out on companies that are in the abnormal category," he said in an online press conference, quoted from Antara, Tuesday, April 4.

He did not mention the identities of the 11 companies, but 6 companies are said to be life insurance companies, 3 general insurance companies, 1 reinsurance company, and 1 insurance company in liquidation.

The number of insurance companies currently being monitored has decreased compared to the number of insurance companies being supervised in 2022, which is 13 insurance companies because 2 insurance companies have improved financial performance so that supervision returns to normal supervision.

Ogi explained that OJK's supervision of insurance companies consists of normal supervision, supervision of incentives, and special supervision, where special supervision is applied to insurance companies experiencing financial problems.

The performance of insurance companies is seen as still positive with commercial insurance premium revenue growing 9.88 percent on an annual basis to IDR 54.11 trillion.

Commercial insurance premium income in February 2023 grew higher than growth in January of 5.22 percent on an annual basis.

"The spike was driven by general insurance premiums and growing reinsurance which increased 27.56 percent on an annual basis in February 2023 and reached IDR 23.79 trillion," said Ogi.

The collection of life insurance premiums also improved with a contraction that decreased to 0.90 percent on an annual basis or Rp30.33 trillion in February 2023, from previously contracting 5.25 percent in January.