Banking credit growth is said to provide opportunities for the credit\ninsurance business. However, the insurance industry is also shadowed by\nclaim ratios if the risk of bad debts increases.<\/p>\n
Based on data from the Financial Services Authority (OJK) as of June\n2026, the credit business line within the general insurance and\nreinsurance industry recorded premium income of Rp11.87 trillion. This\nfigure represents a year-on-year (yoy) growth of 7.10%.<\/p>\n
The Chief Executive of Insurance, Guarantee, and Pension Fund\nSupervision at OJK, Ogi Prastomiyono, stated that insurance has been\nburdened by claims totalling Rp10.85 trillion. This figure is equivalent\nto a claim ratio of 91.44%.<\/p>\n
\u201cBanking credit growth still provides opportunities for the credit\ninsurance business, but it needs to be balanced with strengthened\nunderwriting, portfolio quality, risk-based pricing, reinsurance\nadequacy, as well as recovery and subrogation,\u201d Ogi stated in a written\nresponse, as quoted on Wednesday (2\/9\/2026).<\/p>\n
Moving forward, OJK is encouraging the industry not only to pursue\npremium growth but also to maintain risk quality, profitability, and\nbusiness sustainability.<\/p>\n
As is known, Bank Indonesia (BI) recorded banking credit growth in\nJune 2026 at 12.67% yoy, an increase from the May 2026 growth of 11.51%\nyoy.<\/p>\n
Based on usage groups, this development was supported by investment\ncredit, working capital credit, and consumer credit, which in June 2016\ngrew by 24.90% yoy, 8.94% yoy, and 5.75% yoy, respectively.<\/p>\n
In terms of credit quality, OJK noted that the gross non-performing\nloan (NPL) ratio stood at 2.09% and the net NPL at 0.82%. Meanwhile, the\nloan at risk (LAR) ratio remained stable at 8.47%.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/bad-debt-claims-shadow-insurance-premium-growth-1788357452", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }