Jakarta (ANTARA) - The Financial Services Authority is adjusting the\nrisk-based capital (RBC) calculation method for the insurance industry\nby referring to international standards through the OJK Regulation\n(POJK) on Insurance Solvency Calculation, targeted for issuance this\nyear.<\/p>\n
\u201cEssentially, we are following international standards. We must not\nfall out of alignment with international practices,\u201d said the Executive\nHead of the Insurance, Guarantee, and Pension Fund Supervision (PPDP)\nOJK, Ogi Prastomiyono, after the PPDP Regulatory Dissemination Day event\nin Jakarta on Monday.<\/p>\n
Ogi explained that the adjustment refers to standards set by the\nInternational Association of Insurance Supervisors (IAIS), particularly\nthe Insurance Capital Standard (ICS).<\/p>\n
According to him, the principles in ICS are general and primarily\naimed at Internationally Active Insurance Groups (IAIG) or large-scale\ninsurance companies, while OJK must also adapt them to the conditions of\nthe domestic insurance industry.<\/p>\n
He also emphasised that capitalisation is the main foundation for the\nresilience of the insurance industry as a buffer against risks.<\/p>\n
Through the new provisions to be implemented this year, OJK seeks to\ngradually increase the equity of the insurance industry and apply\ncompany classifications through KPPE (Equity-Based Insurance Company\nGroups) 1 and KPPE 2.<\/p>\n
\u201cSo, if equity has risen, the risk-based capital calculation follows\ninternational standards, there are standards for insurance contracts\nunder PSAK 117, and so on, we hope the insurance industry will improve\nfurther in the future,\u201d said Ogi.<\/p>\n
It is noted that the insurance industry\u2019s assets reached Rp1,219.35\ntrillion in February 2026, up 6.80 percent year-on-year (yoy) from the\nsame period the previous year at Rp1,141.71 trillion.<\/p>\n
The life insurance industry as well as general insurance and\nreinsurance in aggregate recorded RBC levels of 480.83 percent and\n327.98 percent, respectively, above the 120 percent threshold.<\/p>\n
In total, PPDP sector assets for the same period reached Rp2,992\ntrillion, growing by 9.94 percent yoy, with investments worth Rp2,313\ntrillion, also growing by 7.94 percent yoy.<\/p>\n
However, to achieve the 2029 Medium-Term National Development Plan\n(RPJMN) targets, higher growth is needed, namely around 7-9 percent for\ninsurance and 23-25 percent per year for pension funds.<\/p>\n
\u201cStrategies to achieve that growth must of course be carried out\ncollectively, both through extensification and intensification of\nexisting programmes,\u201d said Ogi.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/ojk-adjusts-insurance-rbc-calculation-method-to-follow-global-standards-1776081061", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }