The Financial Services Authority (OJK) is strengthening the development of health insurance to promote insurance penetration and density.
"Most recently, OJK is reviewing health insurance products," said OJK chief executive for insurance, guarantee and pension fund supervision Ogi Pratomiyono on the sidelines of the 2024 Indonesia Insurance Summit held last week, according to a report by the news agency Antara.
OJK noted that in the period January-June 2024, health insurance premiums in general insurance reached IDR4.81tn ($312m), rising by 16.88% compared to the corresponding period of the previous year.
According to data from the Indonesian Life Insurance Association, health insurance claims have increased by 25-30% since mid-2022. This rate of increase exceeded that of medical inflation in Indonesia, which was 13% in 2023. In the first quarter of 2022, claims submitted totalled IDR3.32tn, soared to IDR4.6tn in the first quarter of 2023, and then jumped to IDR5.9tn in the first quarter of 2024. This trend has attracted the attention of the OJK.
Mr Ogi invited all stakeholders in the insurance industry to commit to in-depth reforms. He said, "Since the financial crisis in Indonesia in 1998, the insurance industry sector has not carried out many reforms." ??
OJK released its “Roadmap for the Development and Strengthening of Indonesian Insurance 2023-2027” in November 2023, which is expected to be a reference in carrying out industry reforms.