OJK: Interest in Unit-Linked Insurance Remains Strong Amid Capital Market Fluctuations

Jakarta (ANTARA) - The Financial Services Authority (OJK) stated that public interest in unit-linked insurance products (PAYDI) remains strong amid capital market dynamics throughout the year, as reflected in continued premium growth. As of April 2026, PAYDI performance still shows a positive trend, with premium income reaching Rp14.87 trillion, an 11.14 percent increase year-on-year (yoy). “This shows that public interest in PAYDI products remains strong, supported by the need for protection combined with long-term investment,” said Ogi Prastomiyono, Chief Executive of Insurance, Guarantee, and Pension Fund Supervision at OJK, in a written response in Jakarta on Wednesday. In general, Ogi noted that capital market volatility, including a significant correction in the Jakarta Composite Index (IHSG) throughout 2026, has influenced the performance of PAYDI products, particularly those with a portion of investment in equity instruments. However, the overall performance of PAYDI remains on a positive trend. Ogi also conveyed that investment policy is fundamentally the authority of each insurance company, tailored to product characteristics and customer risk profiles. In fluctuating market conditions, OJK continues to ensure that companies implement prudent investment management, strengthen investment governance, and carry out effective risk management. “OJK also encourages increased product transparency and customer education so that the public understands the characteristics and investment risks inherent in PAYDI products,” Ogi said. Overall, the performance of commercial insurance in terms of accumulated premium income for the April 2026 period reached Rp116.01 trillion, contracting by 0.36 percent year-on-year. Life insurance premiums grew 3.28 percent yoy to Rp62.58 trillion, while general insurance and reinsurance premiums contracted by 4.32 percent yoy to Rp53.43 trillion. The life insurance industry and the general insurance and reinsurance industry recorded aggregate Risk Based Capital (RBC) ratios of 476.11 percent and 311.74 percent respectively, well above the 120 percent threshold.