Insurance Industry Faces Claims and Regulatory Pressure; IFG Strengthens Transformation
Indonesia’s insurance and guarantee industry is facing pressure from rising claims, financial market volatility, and strengthened regulatory frameworks. These conditions are prompting industry players to reinforce their business strategies and undergo transformation to maintain competitiveness.
Denny S. Adji, Corporate Secretary of Indonesia Financial Group (IFG), stated that currency pressures and slowing purchasing power are affecting the dynamics of the financial sector, including the insurance and guarantee industry.
“Currency pressures that increase financial market volatility, as well as weakening purchasing power and UMKM activity, represent factors that the financial sector, including insurance and guarantee sectors, must anticipate,” said Denny in a written statement in Jakarta on Saturday, 14 March 2026.
Denny explained that the industry is also facing strengthened regulation from the Financial Services Authority (OJK), which is driving a healthier and more sustainable industry structure. These policies include the separation of Islamic business units, strengthened capital requirements for insurance companies, and regulations on credit insurance.
Additionally, the industry is experiencing pressure from rising claim ratios, particularly in the health insurance line of business.
“Based on industry data, health insurance claims growth reached approximately 22 per cent, higher than premium growth of only around 3 per cent, thereby placing pressure on industry profitability,” said Denny.
Amid these dynamics, IFG recorded positive performance throughout 2025. On a consolidated basis, IFG’s revenue reached approximately Rp11.47 trillion against a target of Rp11.21 trillion, or approximately 102 per cent of the 2025 annual business plan target.
“These figures remain unaudited as the consolidated financial reporting process is still being finalised,” said Denny.
Entering 2026, IFG is preparing a transformation agenda to strengthen business competitiveness. This includes strengthening the organisation through human resources transformation and a customer-oriented corporate culture.
“IFG will also continue to optimise performance of government assignment programmes and strengthen business synergies within the group through development of various distribution channels, including direct channels, corporate sales, agents, and digital platforms,” said Denny.
IFG is also promoting cross-entity collaboration within the state-owned enterprise ecosystem to open opportunities for new business models through ecosystem approach and strengthening cross-selling programmes among entities. The company is also continuing business restructuring for insurance and guarantee operations within the Danantara Indonesia ecosystem.
“Through these measures, IFG hopes to continue strengthening the role of the insurance and guarantee industry as an important instrument in supporting economic stability and growth of Indonesia’s real sector,” said Denny.