OJK: General Insurance Investment Performance Positive Amid Market Volatility

Jakarta - The Financial Services Authority (OJK) has reported that the investment performance of the general insurance industry showed positive results amid dynamic market conditions. As of April 2026, the investment yield for conventional general insurance reached 0.55 percent, up from 0.27 percent. Over the same period, the investment yield for sharia general insurance also increased to 0.44 percent from 0.36 percent the previous month. “This development shows that the industry is still able to maintain its investment performance amid dynamic market conditions,” said Ogi Prastomiyono, Chief Executive of Insurance, Guarantee, and Pension Fund Supervision at OJK, in a written statement in Jakarta on Wednesday.

Ogi stated that the main challenge ahead for the industry is maintaining a balance between optimising investment returns and managing risk, particularly amidst financial market volatility, global economic dynamics, and interest rate changes. “Therefore, OJK continues to encourage insurance companies to strengthen risk management and maintain the quality of investment assets so that industry performance remains healthy and sustainable,” he said.

Regarding the impact of the BI-Rate increase, Ogi explained that the adjustment of the benchmark interest rate can, in principle, influence the investment strategy of the insurance industry, especially in fixed-income and money market instruments. “However, the impact needs to be viewed comprehensively because, besides being influenced by interest rates, investment performance is also affected by financial market conditions, asset price movements, and the portfolio characteristics of each company,” Ogi said. Despite the BI-Rate increase, Ogi noted that the maintained stability of Government Securities (SBN) yields has helped sustain the industry’s investment performance. On the other hand, the stock market still faces volatility influenced by various global and domestic factors.

Ogi emphasised that investment placement decisions are fundamentally the authority of each company, in accordance with its liability profile, product characteristics, and risk management. “OJK continues to conduct supervision to ensure companies implement good investment governance, comply with provisions regarding investment placement limits, and prioritise the precautionary principle so that financial resilience and the ability to meet obligations to policyholders are maintained,” Ogi said.