Jakarta –
PT Asuransi Jasa Indonesia (Jasindo) plans to cut employees. Asuransi Jasindo itself is one of the state-owned enterprises (BUMN) dealing with general insurance.
If state insurance companies cut their employees, what is really happening to the national insurance sector?
Insurance Observer Irvan Rahardjo revealed that the current condition of the insurance industry is actually not in good shape. Therefore, it is necessary to review and evaluate related products published.
Irvan gave an example, like Jasindo which reduced the number of employees. “Jasindo is an example of one of these, he has cut a lot of employees. A lot of branches have been closed and greatly reduced,” Irvan said when he was contacted on Friday (11/11/2022).
According to Irvan, the problem in the insurance industry is due to credit insurance products. The product is the result of collaboration with banks.
Now these products make it difficult for insurance companies to put up with a lot of claims. Before this happened, the price issue was also the cause of the pressure on the insurance sector.
This is due to competition with other companies. “The worst impact of this problem is that banks will have a hard time channeling credit. Because if there is an increase in premiums charged to customers, it will also affect customer interest,” he said.
Because so far, insurance companies that have credit life insurance products need the support of reinsurance companies. However, Indonesian insurance in the eyes of reinsurers has a low price, so it is far below the standard, so it is considered not good.
It is believed that the Financial Services Authority (OJK) as a regulator must take swift action. For example, the review of product applications submitted by insurance companies.
“So OJK should not grant permissions on products if they are too broad. It has to be specific and clear whether the risk can be insured and accounted for,” he explained.
From data from the Indonesian General Insurance Association (AAUI), overall insurance performance in the second quarter of 2022 is still growing.
In the second quarter, premium income was recorded at Rp 46.03 trillion, up 20% compared to the same period in 2021. There are three lines of negative general insurance business, such as Marine Hull Insurance, Personal Accident Insurance and Sureties naval.
So from the registration of claims in the second quarter of 2022 Rp 17.7 trillion. Contract of 35.7% compared to the same period of 2021. The contracted accident relationships are air insurance, ground energy insurance and personal accident insurance.
(kilo / that)
