This realization increased compared to the previous month by 65.25 percent.
REPUBLIKA.CO.ID, JAKARTA — The Financial Services Authority (OJK) recorded the ratio of claims to insurance company premium by 70.83 percent in July 2022. This realization increased compared to the previous month of 65.25 percent.
Chief Executive of Non-Bank Financial Industry Supervisor OJK Ogi Prastomiyono said that the insurance company’s premiums consist of life insurance, general insurance, and reinsurance.
“This is a slight increase compared to the position in July 2021 of 65.25 percent. The increase in the ratio of claims to premiums must be watched out for,” he said at a press conference, Tuesday (13/9/2022).
According to him, so far the OJK has not studied the causes of the increasing trend in the ratio of claims to premiums but the increase needs to be watched out for because insurance companies can have difficulty carrying out their operational activities if the ratio of claims to premiums reaches 100 percent.
The life insurance claims for the period January to July 2022 increased by Rp. 3.50 trillion or 4.11 percent compared to the same period the previous year. Then claims for insurance products associated with investment (PAYDI) grew 5.14 percent or Rp. 2.48 trillion.
“Most of life insurance claims come from the PAYDI business line or un redemption claims worth Rp 50.83 trillion or reaching 57.27 percent of the total value of life insurance claims and from business lines. endowment worth Rp 20.73 trillion or 23.36 percent,” he said.
Meanwhile, the accumulated value of general insurance and reinsurance claims during January to July 2022 grew 23.79 percent compared to the same period the previous year or increased by Rp. 5.44 trillion. The business line with the largest increase in claims was credit insurance, which experienced an increase in claims of Rp. 2.97 trillion or 80.57 percent compared to the previous year.
General insurance claims mostly came from the credit business line with a claim value of Rp. 5.68 trillion or 27.38 percent of the total general insurance claims and followed by claims from the property business line of Rp. 4.43 trillion or 21.36 percent of the total. claim.
“Meanwhile, reinsurance claims mostly come from the life insurance business line worth Rp. 2.78 trillion or 36.89 percent of the total value of reinsurance claims, and from the property business line worth Rp. 2.55 trillion or 33.78 percent of the total claim value. , ” he said.