OJK: Insurance Investment Returns Surge Due to Improved Financial Market Conditions
Jakarta (ANTARA) - The Executive Head of the Insurance, Guarantee, and Pension Fund Supervisory Division (PPDP) of the Financial Services Authority (OJK), Ogi Prastomiyono, stated that insurance investment returns have increased by hundreds of percent as of February 2026, thanks to improving financial market conditions.
He explained that life insurance investment returns surged 245.44% year-on-year (yoy), while general insurance returns rose 18.47% yoy in February 2026.
“Investment results show strong growth, with life insurance reaching Rp9.37 trillion and general insurance Rp1.40 trillion, in line with the improving financial market conditions,” said Ogi in an official statement received in Jakarta on Friday.
Nevertheless, he advised the insurance industry to prioritise a balance between premium income, underwriting, and investment returns, to avoid over-reliance on investment performance.
Regarding premium income, he noted that life insurance recorded Rp32.39 trillion, or a 0.12% yoy increase as of February 2026, indicating improved performance from previous contractions and signalling a stabilisation phase in the industry following product and regulatory adjustments.
“Looking ahead, premium growth is expected to be driven by product innovation, strengthened distribution, and increased public literacy,” said Ogi.
Meanwhile, the authority observed that health claims trends are still rising, both in life and general insurance, but remain within manageable limits.
He urged insurance companies to maintain performance quality by strengthening underwriting, claims management, and control of healthcare service costs.
The rise in health claims has pressured profit realisation in the life insurance industry. Ogi stated that life insurance profits were recorded at Rp1.14 trillion, down 12.56% yoy.
In contrast, the general insurance industry recorded profits of Rp4.32 trillion, surging 123% yoy, driven by improved underwriting and claims management.
Despite this, the authority projects that the insurance industry will still experience positive growth this year amid increasingly uncertain economic dynamics and challenges.
“Overall, OJK views the insurance industry’s prospects as remaining positive with healthier and more sustainable growth, supported by a balance between individual and group segments, as well as strengthened governance and risk management amid market dynamics and global challenges,” said Ogi.