OJK Trials New RBC Implementation on 10 Insurance Companies

Jakarta (ANTARA) - The Financial Services Authority (OJK) has carried out a pilot project for the new risk-based capital (RBC) calculation method on 10 insurance companies, consisting of five life insurance companies and five general insurance companies. The Executive Head of Insurance, Guarantee, and Pension Fund Supervision at OJK, Ogi Prastomiyono, stated that the trial was conducted through the completion of a simplified new RBC template for the June 2025 position, as well as voluntarily for the December 2025 position. “In the future, the new RBC will introduce an available capital structure based on Tier 1 or core capital and Tier 2 or supplementary capital with a more risk-sensitive and forward-looking approach,” Ogi said during the RBC Working Group press conference in Jakarta on Tuesday. Ogi mentioned that OJK is currently preparing the OJK Regulation (POJK) on the Solvency Calculation for Insurance and Reinsurance Companies as part of adjusting the solvency regulatory framework. This step, Ogi explained, also includes recalibrating risk factors to better suit domestic market conditions. Ogi noted that the current RBC provisions are considered not fully reflective of capital adequacy in comprehensively anticipating risks. Therefore, the refinement of the new RBC method aims to strengthen the available capital calculation framework compared to required capital as the main component.