OJK Says Rupiah Weakening Could Increase Insurance Claim Costs

Jakarta, CNBC Indonesia - The Financial Services Authority (OJK) has outlined the impact of exchange rate depreciation on the insurance industry. Ogi Prastomiyono, the Executive Head of Insurance, Guarantee, and Pension Fund Supervision at OJK, stated that this factor could potentially increase claim costs, both for vehicle insurance and health insurance.

For vehicle insurance, Ogi explained that rising prices of imported spare parts could push up repair costs. Meanwhile, for health insurance, prices of medicines, medical equipment, and services reliant on imported components could also rise.

“This ultimately could affect the size of claims that insurance companies must cover,” Ogi said in his statement on Thursday (9/4/2026).

To anticipate this, he noted that the insurance industry must take steps such as gradual premium adjustments, strengthening risk management and reinsurance, and cost control through collaborations with workshops and healthcare facilities.

“From a regulatory perspective, OJK also emphasises principles of prudence, transparency of benefits, and strengthening the management of healthcare service costs to maintain a balance between industry sustainability and consumer protection,” Ogi added.