Prudential Syariah Supports OJK Regulation on Premium Review Mechanism
Jakarta — Prudential Syariah has endorsed Financial Services Authority (OJK) Regulation No. 36 of 2025 on Strengthening the Health Insurance Ecosystem, which notably regulates mechanisms for premium and contribution reviews or repricing.
Vivin Arbianti Gautama, Chief Customer Marketing Officer of Prudential Syariah, stated that premium and contribution reviews form part of mechanisms designed to ensure that protection remains accessible over the long term.
“We naturally welcome the issuance of this new regulation and we will always comply with applicable regulations and laws in our business and operational practices,” she said in a statement in Jakarta on Tuesday.
Through transparent premium and contribution review mechanisms conducted only once per year in accordance with regulatory requirements, the company seeks to ensure that the protection provided remains reliable and affordable in the long term for all participants.
She noted that in Europe and the United States, an ageing population and rising incidence of chronic diseases such as diabetes and heart disease have driven continuous increases in health claims.
Furthermore, the latest therapies and medical technologies have become increasingly sophisticated, assisting customers’ treatment processes, which has driven up care costs.
Indonesia faces similar challenges, she continued, with data from the Basic Health Survey of the Directorate General of Health, Ministry of Health, showing that the prevalence of non-communicable diseases has risen year-on-year.
The insurance industry is indeed growing positively, she added, with the Financial Services Authority projecting that insurance industry assets will grow by 5–7 per cent in 2026.
However, according to Vivin, Indonesia’s medical inflation is estimated to reach 17.8 per cent in 2026, amongst the highest in Southeast Asia, meaning that health costs are rising far faster than economic growth, necessitating sound management.
She explained that repricing represents a review and adjustment of health insurance premium and contribution prices that occurs due to factors such as medical inflation and increased health claims experience.
Without periodic premium and contribution reviews, imbalances can occur: premiums and contributions paid are no longer commensurate with continuously rising claims costs. If left unchecked, this condition risks compromising service quality and product sustainability.
“In other words, repricing is a preventive measure to ensure that protection remains usable, not only today but also in the years ahead,” she said.
The problem, however, is that premium and contribution reviews, or repricing, are often perceived merely as premium or contribution increases, which she contends is not entirely accurate.
To regulate repricing application, the OJK has issued Regulation No. 36 of 2025 on Strengthening the Health Insurance Ecosystem, which includes provisions governing the premium and contribution review mechanism, or repricing.
The regulation allows insurance companies to review and reset premiums or contributions no more than once per year with written notification 30 calendar days in advance to customers or participants.
This arrangement forms part of strengthened supervision to ensure the insurance industry remains healthy amid medical inflation.
In line with the application of fair pricing principles, Vivin stated that the company is introducing innovative products that offer rewards in the form of premium and contribution relief of up to 20 per cent as appreciation for policyholders who rarely file insurance claims because they maintain good health.
“Customers and participants will obtain optimal premium and contribution benefits in accordance with their health risk profile,” she said.