Jakarta (ANTARA) \u2013 Nailul Huda, an economist at the Centre of\nEconomic and Law Studies (CELIOS), has stated that the Financial\nServices Authority (OJK) regulations requiring increased minimum paid-up\ncapital and equity for insurance companies can serve as a means to\nprotect customers.<\/p>\n
This is particularly important given that strong capitalisation can\nsupport companies in fulfilling their obligations. He noted that\nimplementing such regulations can also prevent claim defaults resulting\nfrom fraud and manipulation by irresponsible parties.<\/p>\n
\u201cFraud cases also occur because the minimum capital is not large and\nso on. This is what OJK has observed in recent years,\u201d Nailul Huda said\nduring the One Zurich Iftar 2026 event in Jakarta on Monday afternoon (9\nMarch).<\/p>\n
\u201cI have met with OJK several times, and they always say that capital\nserves as their tool to protect customers and the industry,\u201d he\nadded.<\/p>\n
Furthermore, Nailul stated that such regulations can also boost\npublic confidence in the insurance industry, which is an important\naspect in maintaining the growth and sustainability of the financial\nservices sector.<\/p>\n
\u201cInsurance is a sensitive industry. When insurance capital is small,\nit impacts trust in financial institutions, not just insurance \u2013 that\ntrust will decline. When capital is strong, trust will also increase.\nThis is precisely what OJK wants to achieve,\u201d he said.<\/p>\n
Additionally, he assessed that an insurance company with substantial\ncapital ownership would certainly have strong risk resilience buffers to\nface the impacts of current global and domestic economic\nuncertainties.<\/p>\n
He noted that increasingly, more people are becoming aware of the\nimportance of having insurance, as evidenced by the rising proportion of\nspending on taxes and insurance, which has increased to 8.06 per cent of\ntotal non-food sector expenditure in 2025.<\/p>\n
To optimise this potential, he recommended that insurance companies\ncontinue innovating to develop various insurance products tailored to\nthe needs of younger generations, including coverage for mental health\nissues.<\/p>\n
\u201cMental health is identified as a potential game changer going\nforward because, regardless, mental health and similar issues have\nbecome a concern for younger generations,\u201d Nailul said.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/celios-equity-rules-serve-as-ojk-tool-to-protect-policy-holders-1773111212", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }