Indonesia insurance sector faces high claim risks and market shifts

The Indonesian insurance and financial services sector is seeing diverse developments. The Financial Services Authority (OJK) has expressed concern regarding high claim ratios in the conventional guarantee industry, which reached 94.41 percent as of July 2026. OJK officials warned that rising non-performing loans (NPL) in the MSME segment could further impact portfolio quality and increase claim risks.

In corporate performance, IFG Life reported paying out Rp9.4 trillion in insurance claims and benefits from January to July 2026, alongside a 32.87 percent growth in premium income. Meanwhile, Allianz Life Indonesia and Maybank Indonesia have launched the Smartwealth Dollar Equity Global Income Fund, a US dollar-based investment feature for unit-link life insurance products to provide global market access.

Other industry activities include BNP Paribas Asset Management and UOB Indonesia continuing their Rp2 billion social fund support for environmental and community initiatives. Additionally, AXA Mandiri and AXA Indonesia hosted Liverpool FC legends for a coaching clinic in Bali, and AXA Sharia Life discussed the competitive landscape following the spin-off of Sharia business units, noting that product diversity is becoming a key differentiator rather than price wars.