Jakarta, VIVA \u2013 The Financial Services Authority is adjusting the\nrisk-based capital (RBC) calculation method for the insurance industry\nthrough the OJK Regulation on Insurance Solvency Calculation, targeted\nfor issuance this year. The adjustment refers to international\nstandards.<\/p>\n
The plan was conveyed by the Head of the Insurance, Guarantee, and\nPension Fund Supervisory Executive of OJK, Ogi Prastomiyono, after the\nPPDP Regulatory Dissemination Day event in Jakarta on Monday, 13 April\n2026.<\/p>\n
\u201cWe will likely continue to use the 120 percent threshold (for RBC),\nbut the calculation method will be adjusted to follow international\nstandards,\u201d said Ogi.<\/p>\n
Ogi explained that the adjustment refers to the 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 more targeted\nat 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
\u201cThe main point is that we are following international standards. We\nmust not fall out of line with international practices,\u201d said Ogi.<\/p>\n
He also emphasised that capitalisation is the main foundation for the\nresilience of the insurance industry as a buffer against risks. OJK,\nthrough the new provisions to be implemented this year, aims 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 increased, the risk-based capital calculation\nalready follows international standards, there is a standard for\ninsurance contracts under PSAK 117, and so on, we hope the insurance\nindustry will be even better in the future,\u201d said Ogi.<\/p>\n
He added that strengthening the insurance industry requires time and\ncollaboration, given that the sector\u2019s contribution to GDP is still\naround 6 percent and is considered to have potential for further\nimprovement.<\/p>\n
For information, the insurance industry\u2019s assets in February 2026\nreached Rp1,219.35 trillion, up 6.80 percent year-on-year (yoy) from the\nsame position in the previous year, which was 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, the PPDP sector\u2019s assets in the same period have reached\nRp2,992 trillion, growing by 9.94 percent yoy, with investments worth\nRp2,313 trillion, also growing by 7.94 percent yoy.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/ojk-to-revise-insurance-rbc-calculation-method-in-line-with-global-standards-here-is-the-target-1776084674", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }