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Navigating Indonesia's Insurance Future: Our Key Takeaways from the 8th Indonesian Actuaries Summit

  • Writer: Actomate
    Actomate
  • Aug 8
  • 4 min read

Two weeks ago, our team, Nadia Suharto ASA and Raymond Goh ASA, had the privilege of attending the 8th Indonesian Actuaries Summit in Bangka. Under the theme "Navigating Uncertainty, Shaping Tomorrow", the summit brought together thought leaders, regulators, and practitioners from across the insurance and actuarial ecosystem.


We attended several insightful sessions, and here are four that stood out to us - along with our reflections and opinions.

1. Reforms in Underwriting and Claims Practices

Speaker: Dra. Francisca M. Roeswita, FSAI

This session tackled much-needed reforms in underwriting and claims decisioning, especially post the Constitutional Court’s ruling on Article 251 KUHD. Of particular interest:

  • A proposed standardization of contestable periods, with room for longer durations in high-risk segments.

  • The formalization of Guaranteed Issuance Offers (GIO), with non-disclosure no longer automatically voiding claims unless there's fraud.

  • Emphasis on material facts and risk re-underwriting at claim stage rather than outright rejection.


This signals a shift toward customer protection with actuarial rigor. With trust in financial services still developing in Indonesia, these reforms could help build long-term credibility in the insurance sector, especially if insurers demonstrate fairness, transparency, and consistency in claims handling.


That said, increased protection should not come at the expense of sound pricing and anti-selection controls. Striking the right balance is key. Mature markets like Singapore or Malaysia offer good benchmarks: consumer trust was earned through robust regulation, clear policy wordings, and consistent claims behavior, all of which relied on actuarial involvement.


We believe actuaries in Indonesia will need to work more closely with underwriting and claims teams in adjusting assumptions, reviewing policy wordings, and preparing for increased scrutiny in claims governance.


2. Implications of SEOJK No.7/SEOJK.05/2025 on Health Insurance

Speakers: Faiza Kamalia (PAMJAKI), Ibnu Hasyim (AAJI), Iwan Pasila (OJK)

This regulation introduces significant expectations for insurers to uplift their governance, pricing, and digital health strategy:

  • Encourage clinical pathway alignment, managed care, and a digital backbone to support claim review.

  • Cost sharing such as copay and coinsurance is framed not just as a pricing lever but a behavioral tool to shape utilization.

  • Emphasis on utilization review indicators, actuarial monitoring, and even segregated pricing strategy for group vs individual products.


These measures are timely, especially considering the challenges in Indonesia’s health insurance landscape:

  • The rapid rise of claims compared to premium growth.

  • A lack of standardized treatment protocols, leading to inconsistent medical billing.

  • Varying provider practices across hospitals for similar conditions, raising concerns on overtreatment and claim inflation.


The presentations also stressed the importance of building internal actuarial and data analytics capabilities, especially to track utilization, assess severity, and embed early warning signals. In our view, Indonesia's direction reflects an urgent need to professionalize the way health insurance is designed and monitored.


The focus now should be on strengthening internal operations, working with providers to align clinical pathways, and empowering actuaries to shape health product sustainability.


3. Future of Mandatory Third-Party Liability (MTPL)

Speaker: Suhardiman (PT Jasa Raharja)

Indonesia’s current Third Party Liability (TPL) framework primarily covers bodily injury, but the UU P2SK introduces a broader vision, extending mandatory coverage to property damage as well. This would significantly elevate the level of protection available to road users.

Three implementation schemes are being considered:

  • A public-only model similar to Jasa Raharja today.

  • A private competitive model like in Germany, Malaysia or the UK.

  • A mixed model involving collaboration between state and private insurers like in India.


Equally important is how premiums will be determined: centrally priced by regulators, risk-based by private insurers, or a hybrid depending on market segments.


While the technical and regulatory frameworks are taking shape, we believe the biggest challenge lies in public communication. With insurance penetration still low, many Indonesians may perceive mandatory insurance as an unnecessary financial burden. In reality, this reform aims to provide peace of mind and financial protection when accidents happen.


To improve acceptance, the government could consider education campaigns, transparent claims handling, and subsidies for low-income drivers, especially in early phases. Other countries like have taken similar steps to build public trust while rolling out MTPL reforms.


From an actuarial standpoint, pricing fairness, claim sustainability, and behavioral incentives must be carefully designed to ensure success.


4. Unlocking Sharia Insurance Growth

Speaker: Nazrul Namizan (Prudential Sharia Indonesia)

With <1% sharia insurance penetration despite a majority Muslim population, Indonesia's Sharia insurance is a sleeping giant. Key themes from the session:

  • Rising demand from mass affluent Muslim consumers who seek ethical, values-aligned products.

  • Gaps in product variety, particularly in high-end, modular, and lifestyle-based protection.

  • Call for integrated ecosystems that bring together Islamic banks, fintech, and community channels.


Indonesia’s context is very different from Malaysia, where Sharia penetration is much higher due to a mature Takaful industry and clearer regulatory separation. We believe Indonesia is now at a tipping point and actuaries have a role in not just pricing, but in crafting products that align with both Sharia principles and modern consumer preferences.


Final Thoughts

Across these sessions, a common theme emerged: Indonesia’s insurance sector is on the cusp of transformation – driven by regulation, digital infrastructure, and consumer expectations.


Our key reflection is this: the actuarial function must evolve beyond compliance. Whether it's designing benefit structures, embedding controls in health pricing, supporting mandatory cover expansion, or innovating for the Sharia segment – actuaries need to step forward as business enablers.


We’re excited to continue supporting our clients in Indonesia and across Asia in navigating these challenges.


To explore how we can help your organization respond to regulatory changes, modernize pricing, create successful medical products, or expand into Sharia and employee benefits – connect with us.

 


Key takeaways from the 8th Indonesian Actuaries Summit: reforms in claims, health insurance governance, Sharia growth, and motor third party liability.

 

 
 
 

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