Without Actuaries, 6 Insurance Companies Under OJK’s Spotlight
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| OJK (Doc. Ist) |
Printable.biz.id – The Financial Services Authority (OJK) revealed that six insurance companies have yet to fulfill the requirement of employing actuaries. This number has actually decreased compared to October 28, 2024, when there were still nine companies without actuaries.
The Chief Executive of Insurance, Guarantee, and Pension Fund Supervision (PPDP) at OJK, Ogi Prastomiyono, stated that these six companies have not even submitted candidates for a fit and proper test.
"As of January 24, 2025, there are still six companies that have not yet appointed an actuary or submitted a candidate for an assessment of their qualifications and competencies," Ogi said in an official statement on Saturday (February 15).
Ogi emphasized that OJK will continue to monitor companies that have not met this requirement. Actions taken include issuing warnings and requesting action plans from the companies.
Additionally, OJK is maintaining continuous coordination with the Indonesian Society of Actuaries (PAI), the institution responsible for actuary certification. This is to ensure that the supply of actuarial professionals remains available for the insurance industry.
Actuaries play a critical role in insurance companies, especially in implementing the latest accounting standard, Financial Accounting Standards Statement (PSAK) 117. Previously known as PSAK 74, this standard is set to take effect on January 1, 2025.
PSAK 117 aims to standardize insurance companies' financial reports, making them more comparable across different companies and industries.
The obligation for insurance and reinsurance companies to employ actuaries is stipulated in Law No. 40 of 2014 on Insurance and OJK Regulation No. 67/POJK.05/2016, which governs licensing in the insurance industry.
Article 17, Paragraph (1) of Law No. 40 of 2014 states that insurance companies must employ sufficient experts in line with their business activities. Paragraph (2) further mandates that insurance and reinsurance companies must employ an adequate number of actuaries to independently manage the financial impact of the risks they face, following established professional standards.
Total Insurance Industry Assets Reach IDR 1,133.87 Trillion
Meanwhile, OJK reported that the total assets of Indonesia's insurance industry reached IDR 1,133.87 trillion as of December 2024, marking a 2.03% increase compared to the previous year's IDR 1,111.30 trillion.
Of this total, IDR 913.32 trillion came from commercial insurance, which grew by 2.4% year-on-year (YoY).
On the other hand, non-commercial insurance assets—including the Social Security Administration (BPJS) for Health and Employment, as well as insurance programs for civil servants (ASN), the military (TNI), and the police (Polri)—amounted to IDR 220.55 trillion, growing by 0.54% YoY.
OJK remains committed to ensuring that Indonesia’s insurance industry operates healthily and complies with applicable regulations, particularly regarding actuarial staffing requirements.
