To Ensure Optimal Long-Term Protection, Insurance Premiums Must Be Reviewed via Repricing
In the insurance sector, repricing is a mechanism for reviewing and adjusting health insurance premiums or contributions, which occurs due to several factors such as medical inflation and increasing health claims experience.
In other words, repricing is a preventive measure to ensure protection remains usable not only today but also in future years.
To regulate the implementation of repricing, the Financial Services Authority (OJK) has issued POJK No. 36 of 2025 on Strengthening the Health Insurance Ecosystem, which includes provisions governing the mechanism for reviewing premiums or contributions, or repricing.
This regulation allows insurance companies to review and reset premiums or contributions at most once per year, with written notification 30 calendar days in advance to customers or participants. This arrangement is part of strengthening oversight to ensure the insurance industry remains healthy amid medical inflation.
The primary objective is to protect customers and participants, so that insurance benefits remain usable in the long term as healthcare service costs rise. To ensure this price adjustment is more measurable and better anticipated by customers and participants, it considers their health history.
Vivin Arbianti Gautama, Chief Customer Marketing Officer of Prudential Syariah, explained that reviewing premiums or contributions is part of the regulated mechanism to maintain long-term protection usability.
“Prudential welcomes the issuance of this new regulation, and we will always comply with the regulations and laws applicable in our business and operational practices,” said Vivin in a statement on Monday, 2 March 2026.
Through a transparent premium review mechanism implemented only once per year in accordance with regulator requirements, Vivin assured that Prudential Syariah strongly supports POJK No. 36 of 2025 on Strengthening the Health Insurance Ecosystem.
“We want to ensure the protection we provide remains reliable and affordable in the long term for all participants,” she said.
For context, repricing is important and necessary for insurance participants. Beyond cost considerations, another factor regulators and industry consider is changes in public risk profiles. Currently, approximately 28 per cent of national health spending is still paid directly by the public (out-of-pocket). This means the financial risk from illness remains significant, so the need for additional protection remains high.