The Indonesian insurance industry is facing greater and increasing risks amid rising geopolitical tensions, according to the Indonesian Financial Services Authority (OJK).
In a written statement released on 20 March 2026, OJK's Chief Executive of Insurance, Guarantee, and Pension Fund Supervision, Ogi Prastomiyono said these risks arise through increased logistics costs, supply chain disruptions, energy volatility and other factors.
Mr Prastomiyono said, "Business lines that are relatively more affected include marine cargo, property, and energy on-shore, as the exposure to risks in global trade and transportation rises.”
He said the reciprocal tariffs from the US and escalating conflicts in the Middle East could potentially suppress global trade, thus affecting the growth of premiums and increasing risks in marine cargo insurance.
The statement said the risks in marine cargo insurance must be addressed by strengthening underwriting, adjusting premium rates, and being more cautious with risk management.
The regulator said the global turmoil risks are affecting adjustments, such as reinsurance prices and increased risk perception. However, premium adjustments are generally made gradually while considering market conditions and the principles of cautious underwriting.
He said the global economic volatility could affect the performance of investment-based products such as unit-linked products.