MILLIMAN INDONESIA LIFE INSURANCE NEWSLETTER
1 January 2024
TABLE OF CONTENTS
Market performance 2
Market news 2
Regulatory developments 4
Distribution updates 5
Other recent developments 6
We are pleased to present the January 2024
edition of Milliman’s Indonesia Life Insurance
Newsletter. This edition covers developments
from 1 July 2023 to 30 September 2023.
We trust you find this edition informative.
As always, we look forward to receiving your
feedback, questions or comments.
Farzana Ismail
Principal and Consulting
Actuary
Junaidi Amin
Head of Life Insurance
Consulting, Indonesia
Joshua Winata
Consulting Actuary
Richard Holloway
Managing Director,
South East Asia & India, Life
Life in Indonesia
JANUARY 2024 EDITION
MILLIMAN INDONESIA LIFE INSURANCE NEWSLETTER
2 January 2024
Market performance
INDUSTRY PERFORMANCE OVER Q2 2023
According to the Indonesian Insurance Statistics published by
the Financial Services Authority (OJK), the Indonesian life
insurance industry experienced a decrease in profit before tax
and other comprehensive income (OCI) over Q2 2023 (relative
to Q2 2022). The change over the period is summarised below:
FINANCIALS (IN IDR TRILLIONS)
Q2 2022
Q2 2023
CHANGE
Net Premium Income
80.69
71.61
(9.08)
Investment and Other Income
14.63
25.58
10.95
Total Income
95.32
97.19
1.87
Total Claims and Benefits
70.48
74.93
4.45
Commission and Acquisition Costs
9.12
9.29
0.17
Operating Expenses
9.31
10.43
1.12
Total Expenses
88.91
94.65
5.74
Profit/(Loss) Before Tax and OCI
6.41
2.55
(3.86)
Tax
0.82
0.72
(0.10)
Net Profit/(Loss) Before OCI
5.59
1.83
(3.76)
Total Assets*
599.49
587.18
(12.31)
Premium Reserve
436.28
408.11
(28.17)
Unearned Premium Reserve
4.90
5.58
0.68
Claim Reserve
7.57
8.17
0.60
Catastrophic Reserve
0.08
0.14
0.06
Total Technical Reserve
448.83
422.00
(26.83)
Source: OJK's Indonesia Insurance Statistics: June 2022 and June 2023.
Note: OCI = other comprehensive income.
* As at 30 June 2022 and 30 June 2023.
Over Q2 2023, the profit before tax and OCI decreased by
IDR 3.86 trillion compared to Q2 2022, mainly driven by a
decrease of IDR 9.08 trillion in net premium income and an
increase of IDR 4.45 trillion in total claims and benefits,
despite an increase of IDR 10.95 trillion in investment and
other income.
The Indonesia Life Insurance Association (AAJI) reported that
unweighted total premium (including renewal premium) over
Q2 2023 was IDR 86.23 trillion, a decrease of 9.9% compared
to Q2 2022. Despite this, the total number of insured lives
increased by 18% and 23.7% for groups and individuals
respectively in Q2 2023 compared to Q2 2022.
The AAJI further reported that the life insurance industry
paid claims and benefits amounting to IDR 79.44 trillion over
Q2 2023, including IDR 9.39 trillion of health claims, compared
to IDR 83.93 trillion over Q2 2022 with IDR 6.94 trillion in
health claims.
Market news
NEW PRODUCTS
The following new life insurance products were reported to
have been launched over Q3 2023:
Traditional products:
PT Asuransi BRI Life (BRI Life) and PT Bank Rakyat
Indonesia Tbk (Bank BRI) launched Asuransi Proteksi
Jiwa Terencana Kirana, a term life product providing
death coverage for five years to policyholders aged
between 18 and 60, with annual premium and single
premium options. The single premium option is 10%
cheaper than the annual premium option and comes with
an additional death benefit amounting to the unexpired
premium for the remaining coverage term.
PT Asuransi Jiwa Manulife Indonesia (Manulife) and PT
Bank DBS Indonesia (Bank DBS) launched MiWealth
Infinite Assurance (MiWISE), a 1-/2-/5-pay whole of
life product specifically designed for high-net-worth
customers as a legacy planning solution, offered in both
IDR and USD. The greater of two amounts will be paid
out upon death:
1. The total of sum assured and additional sum assured,
which is a non-guaranteed surplus sharing amount
declared at every policy anniversary.
2. The sum assured multiplied by a multiplier factor,
which gradually reduces for older age bands.
Upon accidental death before age 70, an additional 100%
of sum assured is also paid out. The total of sum assured
and additional sum assured (if any) is paid out upon
maturity.
PT Asuransi Allianz Life Indonesia (Allianz Life)
introduced LegacyPro, a 5-/10-/15-pay whole of life
product paying out the sum assured upon death, plus a
sum assured booster of up to 50% starting from age 75.
The sum assured starts from IDR 200 million/USD 20,000.
This product also waives all future premiums upon critical
illness diagnosis.
PT Asuransi Jiwa Sinarmas MSIG (Sinarmas MSIG)
introduced SMiLe Medika Ultimax (SMUAX), a yearly
renewable term health plan up to age 100, offering plans
with a range of coverage for inpatient care and outpatient
care. Other miscellaneous benefits include inpatient care
outside of coverage area, HIV/AIDS allowance, local
ambulance service expenses, a death benefit, and a
booster benefit. Policyholders can opt for an inpatient care
deductible. Yearly premiums start from IDR 1.61 million.
Astra Life launched AVA Group Medical Protection, a
group health product for employees of micro, small and
medium enterprises (UMKM). The product provides basic
coverage for hospitalisation and surgery, as well as
optional coverage for outpatient care, maternity care, and
dental care. Premiums start from IDR 10 million per year
per policy for participants ranging from three to 100
employees.
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3 January 2024
Manulife introduced Manulife Saving Protector (MSP), a
5-pay 10-/15-/20-year endowment product available in IDR
and USD, offering individuals a dual-purpose solution in
saving for both their retirement and their children's
education. The product features annual cash benefit
payments as a percentage of annual premium varying by
policy term and currency, from the end of the fifth policy
year until the end of the coverage period, as well as a
maturity benefit amounting to 500% of the annual
premium. Upon death, the policy does not terminate, and
the cash benefit and maturity benefit will still be paid
according to schedule, with adjustments as follows:
1. During premium term: Starting at 20% of both benefit
payments for deaths in the first policy year, linearly
increasing to 100% for deaths in the fifth policy
year (prorated within the year for non-annual
premium modes).
2. After premium term: Additional cash benefit payments,
expressed as percentages of annual premium varying
based on policy term, currency and cause of death.
Allianz Life and PT Bank CTBC Indonesia (Bank CTBC)
launched Allianz Life Secure PINTAR, a single premium
10-year term life product available in IDR and USD. Upon
death, the product pays a 105% return of premium for the
first two years and 100% of the sum assured thereafter.
The death benefit is doubled for accidental deaths.
Furthermore, upon survival to the end of 10 years,
Allianz will pay the education benefit amounting to 100%
of the sum assured.
PT Sun Life Financial Indonesia (Sun Life) and PT
Bank CIMB Niaga Tbk (CIMB Niaga) have introduced
X-Tra Proteksi Retirement, a 5-/10-/15-pay endowment
denominated in IDR offering life protection and financial
security during the productive years up to age 70. Key
features of the product include a death benefit starting
from 100% of the sum assured and reducing for ages 56
and above, guaranteed cash value payments of 24% sum
assured at age 56 followed by annual payments of 11%
sum assured until age 69, and 75% of sum assured is
paid out upon maturity, totaling 252% of the sum assured.
The cash value, including a guaranteed component of at
least 10% of sum assured, and a non-guaranteed
component which accrues starting from the third policy
anniversary, will be additionally paid out upon maturity.
A non-guaranteed extra cash value benefit, amounting to
10% of the non-guaranteed cash value accrued to date at
age 56, will also be paid out annually from age 56 until 69.
Unit-linked products:
PT Asuransi Jiwa Astra (Astra Life) launched ASLI
Proteksi Andalan, a regular premium whole of life product
with a loyalty bonus feature and a maximum entry age
of 70 years old. Basic monthly premiums start from
IDR 500,000/USD 150. The minimum sum assured is
IDR 100 million/USD 50,000 or 500% of the basic annual
premium, whichever is greater. The sum assured (subject
to a juvenile lien clause) and account value are paid out
upon death or terminal illness diagnosis, while only the
account value is paid out upon maturity at age 99. An
acceleration of the sum assured (subject to juvenile lien
clause) and the account value will be paid out upon total
permanent disability before age 65. Loyalty bonuses, each
amounting to 50% of the basic annual premium, are
credited at the end of the 15
th
and 20
th
policy years.
Sinarmas MSIG and PT Bank Tabungan Negara Tbk
(Bank BTN) launched Smart Flexi Optima Link, a single
premium whole of life unit-linked product. The maximum
insured entry age is 70 years, and the minimum premium
is IDR 50 million/USD 5,000. Upon accidental death, the
sum assured and account value will be paid out whereas,
upon maturity and natural death, only the account value
will be paid out.
Astra Life and PT Bank Permata Tbk (Bank Permata)
launched AVA iVantage Platinum Protection, a single
premium unit-linked product providing coverage for
terminal illness, total permanent disability and death until
age 85. The maximum entry age is 70 years, and the
minimum premium is IDR 80 million/USD 40,000 with a
minimum sum assured of 125% of the premium. Upon
death or terminal illness diagnosis, the sum assured
(subject to juvenile lien clause) and account value will be
paid out. In the event of accidental death before age 65,
an additional 100% of sum assured is also paid out. An
acceleration of the sum assured (subject to juvenile lien
clause) and the account value will be paid out upon total
permanent disability before age 65. Only the account value
will be paid out upon maturity.
Syariah products:
PT FWD Insurance Indonesia (FWD) launched FWD
Berkah Pendidikan, an education endowment product
providing coverage up to the child reaching age 22. The
policyholder entry age ranges from 18 to 50, while the
child entry age spans from one month up to age 10.
Contributions start at IDR 6 million per year, payable for
five years or up to the start of the cash benefit payment
period. The monthly education cash benefit amount is
determined at outset and starts from IDR 500,000. When
the child reaches age 18, a lump sum of 2,500% of the
monthly cash benefit is paid, followed by 100% monthly
cash benefit payments for the subsequent 47 months. In
the event of death, total permanent disability, or critical
illness diagnosis of the policyholder, the policy waives all
future contributions and remains in force until the end of
the cash benefit payments. An additional lump sum of
1,500% of the monthly cash benefit is also paid in the
event of the policyholder’s death. Any accrued cash value
will be paid upon maturity.
PT Prudential Sharia Life Assurance (Prudential
Syariah) launched PRUPrime Healthcare Plus Pro
Syariah, a unit-linked rider that provides health coverage,
e.g., inpatient and surgery, outpatient and other benefits,
with a maximum entry age of 75. There are 11 plans
available with basic benefit limits ranging up to
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4 January 2024
IDR 20 billion. Its features include PRUPrime Saver
(option for a deductible to lower the contribution rates),
PRUPrime Limit Booster (a one-off benefit limit increase
of up to IDR 50 billion at the beginning of the coverage
term) and Growing Benefit Facility (increasing the benefit
limit by 10% of initial benefit limit for every year without
claims, capped at 50%).
Prudential Syariah has launched PRUAnugerah
Syariah, a 5-/10-/15-pay whole of life product with
contributions starting from IDR 500,000 per month. This
product offers retirement benefits (survival benefit) up to
100% of contributions paid to date, varying by policyholder
entry age. For entry ages up to 55 years old, this benefit
will be paid out upon reaching age 60 or the 25
th
policy
anniversary, whichever comes earlier, and upon reaching
age 80 for entry ages 56 and above. If death occurs before
the retirement benefit payment, 150% of sum assured and
cash value will be paid out, otherwise the death benefit will
be 100% of sum assured and cash value. The product
also provides an additional accidental death benefit before
age 70, which amounts to 250% of sum assured during
holiday or pilgrimages and 150% of sum assured during
non-holiday season. There is an option to endow (waqf) a
maximum 45% of total insurance benefits and maximum
33% of retirement benefits. The product also waives all
future contributions upon critical illness diagnosis.
PT Asuransi Jiwa Generali Indonesia (Generali) and
PT Bank BJB Syariah (Bank BJB Syariah) launched
Pro-Life Jariyah 100, a 5-/10-/15-/20-pay whole of life
product providing death, survival and maturity benefit.
Upon death, the product pays 100% return of contribution
for the first two years, and the sum of the sum assured
(subject to juvenile lien clause for non-accidental death),
cash value and a percentage of return on contribution,
varying based on premium term thereafter. In addition,
all contributions paid will be returned over two payments
within the policy term, once 10 years after premium term
and once upon reaching age 75. The sum assured will be
paid out of the cash value upon maturity.
Microinsurance products:
PT Asuransi Jiwa IFG (IFG Life) introduced IFG
LifeSAVER, a 1-month product providing accident
coverage for medical expenses, deaths and total
and permanent disabilities, available in two variants:
LifeSAVER and LifeSAVER+. The product pays
IDR 20 million or IDR 40 million upon death or total
permanent disabilities, and provides a medical benefit
limit of IDR 200 million or IDR 400 million per accident.
Water sport accidents are only covered by the
LifeSAVER+ variant. The product can be purchased
through the Life by IFG app with a premium of
IDR 49,000 or IDR 99,000 per month. Additional coverage
for physiotherapy up to IDR 10 million and sport injury
medical expenses up to IDR 20 million is provided
complimentarily during the promotional period, which is still
valid at time of writing.
NEW DIGITAL FEATURES
PT Perta Life Insurance (PertaLife) has launched the
digital application P-Life and the Grab Merchant Program
as a part of the company's 38
th
anniversary celebration.
The P-Life app is designed for selling individual life
insurance products, including life insurance (Tugu Eka
Warsa), accident insurance (MediCard), health insurance
(Health Guard), and education insurance (Smart Gift). The
company also introduced the Grab Merchant Program,
providing 1-year death coverage of IDR 100 million for
UMKM owners who are Grab Merchant partners.
Blu by BCA Digital, a digital banking application provided
by PT Bank Central Asia Tbk (Bank BCA), has recently
launched its new feature, bluInsurance, allowing
customers access to insurance services provided by PT
Asuransi Jiwa BCA (BCA Life). BluInsurance provides
four insurance products, focusing on term life and personal
accident coverage, with affordable premiums starting from
IDR 40,000 per month. Customers can directly purchase
these products through the blu app.
PT Prudential Life Assurance (Prudential) has signed a
memorandum of understanding with Bank BRI. The
collaboration enhances Prudential’s insurance premium
collection process using Bank BRI’s integrated corporate
solution platform, Qlola by BRI, and enables it to simplify
its operational transactions, including insurance claim
payments for customers, by leveraging on Bank BRI’s
transaction services such as BRI API Fund Transfer and
BI-Fast. Additionally, Prudential customers can
conveniently pay premiums using Bank BRI’s autodebit
and credit cards available on the PRUPaylink platform.
UPDATE ON JIWASRAYA/IFG LIFE
Jiwasraya has handed over the responsibility for the
remaining 1% of policyholders who rejected the
restructuring proposal to the Ministry of State-Owned
Enterprises (BUMN). This decision comes as a response
to customers continuing to decline Jiwasraya’s
restructuring offers, including the restructuring programme
for bancassurance policies.
SYARIAH SPIN-OFF
The Syariah business unit of Allianz Life officially
separated from the holding company after the regulator
granted a business license to a new entity named
PT Asuransi Allianz Life Syariah Indonesia (Allianz
Syariah) on 11 August 2023. Allianz Syariah would later
commence operations in November 2023.
Regulatory developments
NEW REGULATIONS OVER Q3 2023
The following OJK Regulation (POJK) developments have
been reported during Q3 2023:
In July 2023, the OJK issued POJK No 9/POJK.03/2023,
an amendment from POJK No 13/POJK.03/2017,
regarding the use of public accountants and public
accounting firms in the financial service industry. This
regulation aims to ensure that the activities conducted in
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5 January 2024
these firms are professional and ethical following the
International Code of Ethics for Professional Accountants
IESBA 2018.
In July 2023, the OJK issued POJK No 11/POJK.05/2023
regarding the Separation of Syariah Units within Insurance
and Reinsurance Companies. The new regulation requires
the minimum equity for spin-off to be at least IDR 100
billion and IDR 200 billion for Syariah Units of Insurance
and Reinsurance Companies, respectively, alongside an
additional condition that the separation of a Syariah unit is
attainable when the Syariah unit’s Tabarru fund and
participant’s investment fund constitute at least 50% of the
total insurance, Tabarru and investment fund of the
holding. Other points covered by the regulation include:
1. If, during the process of Syariah Unit separation, the
assets and/or equity of the Syariah Unit decrease and
no longer meet the requirements as stated above, this
condition does not absolve the Insurance Companies
and Reinsurance Companies from the obligation to
perform the Syariah Unit separation.
2. The transfer of the portfolio must be completed within
a maximum of six (6) months from the date of
approval of the Syariah Unit’s separation by the
Financial Services Authority (OJK).
3. Companies with Syariah business units must submit
changes to the Syariah Business Unit Separation
Work Plan (RKPUS) by December 2023 at the latest.
FORTHCOMING REGULATIONS
The following developments in forthcoming regulations were
reported in the news over Q3 2023:
The upcoming Group Company Insurance System based
on Equity (KPPE) and Insurance Business Group (KUPA)
will categorise insurance companies into two groups,
KPPE 1 and KPPE 2, based on their capital. OJK plans to
issue the regulation of licensing and the structure of
insurance/reinsurance companies in Q4 2023. KPPE 1
and KPPE 2 will have different minimum equity
requirements, with KPPE 1 companies needing a minimum
of IDR 500 billion and KPPE 2 requiring IDR 1 trillion, to be
fulfilled by 31 December 2028. Additionally, KUPA is
introduced as an alternative for companies unable to meet
the equity requirements by the end of 2028, involving
ownership relationships among its members. This
regulation aims to streamline Indonesia’s insurance
industry, enhancing integrity and stability, although as of
now no insurance company has registered for KUPA.
The KUPA parent company must meet KPPE 1
requirements, while its members are not restricted by
capital, although the parent must own around 10% of
KUPA shares. The minimum capital requirements for
conventional insurance and reinsurance companies are
set to increase, reaching IDR 1 trillion and IDR 2 trillion,
respectively, by 2028.
Distribution updates
AGENCY CHANNEL
The following new agency developments have been reported in
the media over Q3 2023:
PT Bhinneka Life Indonesia (Bhinneka Life) officially
inaugurated a new marketing office in Medan, North
Sumatera.
PT AXA Financial Indonesia (AXA Financial) opens
its first marketing office in Tegal, Central Java, named
Tegal Lucky Blessing.
PT Asuransi Jiwa Sequis Life (Sequis Life) inaugurated
a new marketing office, Agency Legend Musketeer, in
Tanjungpinang, Riau Islands.
PT Panin Dai-ichi Life (Panin Dai-ichi Life) inaugurated
a new marketing office, General Agency Meraih Visi
Pemenang, in PIK 2, Tangerang Regency, Banten.
BANCASSURANCE CHANNEL
The following new bancassurance partnerships and
developments have been reported in the media over Q3 2023:
PT MNC Life Assurance (MNC Life) has signed a
memorandum of understanding (MoU) with PT BPR Dinar
Pusaka (BPR Dinar Pusaka) on the provision of credit life
insurance. The synergy between MNC Life and BPR Dinar
Pusaka is aimed at enhancing customer service,
complementing existing products offered by BPR Dinar
Pusaka to its customers.
PT Bank Mandiri Taspen (Mandiri Taspen) is
collaborating with PT Heksa Solution Insurance (Heksa
Solution), who started providing credit life cover to
Mandiri Taspen’s debtors, which would provide loan
settlement to the bank in the event of the debtor's
unfortunate demise. Mandiri Taspen customers now have
three credit life cover options, including Heksa Solution.
IFG Life and Bank BTN have signed a 15-year
partnership to market bancassurance products targeting
home ownership loan (KPR) customers. IFG Life plans to
offer health and life insurance products and engage
millennials further through its lifestyle applications,
designing insurance products catered to them.
DIGITAL CHANNEL AND INSURTECH
PT Pos Indonesia (Pos Indonesia) collaborates with
PT Sunday Insurance Indonesia (Sunday Indonesia),
an insurtech insurance aggregator company, for insurance
sales on Pospay, a unified digital payment service
platform issued by Pos Indonesia. Pospay customers can
now buy various insurance products underwritten by
Sunday Indonesia, including life microinsurance cover with
premiums starting from IDR 15,000, as well as affordable
travel insurance.
Generali has partnered with Pos Indonesia to utilise
Pospay for sales of Asuransiku Berkah Bagi Negeri
(Aku Berbagi), a regular premium whole of life Syariah
product with a maximum entry age of 65 years old. The
sum assured (subject to a juvenile lien clause) is ranging
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6 January 2024
from IDR 1 million to IDR 500 million and will be paid out
upon death or maturity at age 99. If death occurs within the
first two years, non-accidental death will only receive a
50% return of contribution, while accidental death will
receive the sum assured. For accidental death that occurs
before the policy start date, the sum assured will be
capped at IDR 25 million and the premium will be returned.
Additionally, customers also have the option to contribute
to social welfare by sharing a portion of their policy
benefits (waqf).
OTHERS
The following partnerships and developments have been
reported in the media over Q3 2023:
Panin Dai-Ichi Life partnered with telemedicine
application KlikDokter, taking a progressive step towards
digital innovation by offering digital healthcare and claims
services to their customers. Accessible through the
Connect by Panin Dai-ichi Life app, one of the services
provided is “Ask a Doctor” allowing customers to consult
with doctors online through the digital platform. This
service enables customers to receive medical advice
without visiting healthcare facilities, including prescription
deliveries to their homes.
On 24 August 2023 Bank of Singapore Ltd (Bank of
Singapore) acquired additional shares of PT Maskapai
Reasuransi Indonesia (Marein). An Indonesia Stock
Exchange (IDX) report shows that Bank of Singapore
increased its ownership stake by 5,000 shares in Marein.
As a result, Bank of Singapore now holds 5.003% of
Marein shares, up from the previous 5.002%.
Other recent developments
MACROECONOMICS
The graph below shows the Indonesian rupiah (IDR)-US dollar
(USD) exchange rate for the past 12 months.
USD TO IDR EXCHANGE RATES
Source: FX rate: www.xe.com.
Overall, compared with conditions at the end of 2022, the
US dollar index gained 2.60% year-to-date (ytd). The strong
US dollar had a widespread impact on global currencies,
causing depreciation. This led to losses for currencies such as
the Japanese yen, Australian dollar, and euro. However, the
rupiah only depreciated by 1.03% (ytd) due to stabilisation
measures by Bank Indonesia (BI). To address global financial
market uncertainty, BI plans to strengthen its rupiah
stabilisation policy, through a number of efforts, one of which is
issuing Bank Indonesia Rupiah Securities (SRBI). BI aims to
attract foreign portfolio inflows by making SRBI more appealing
to foreign investors. Additionally, other efforts that will be made
to improve financial stability includes implementing instruments
aligning with government regulations and retaining proceeds
from natural resources exports.
Indonesia's domestic economy remains strong despite global
challenges. In Q3 2023, economic growth was driven by robust
private consumption, especially among younger demographics,
buoyed by increased spending in the services sector and
sustained consumer confidence. Investments also performed
well due to ongoing national strategic projects (PSN). However,
real exports growth declined due to weakened demand from
key partners like China and lower commodity prices. Services
exports, however, rose with increased international travel.
Regionally, Sulampua, Kalimantan and Java showed strong
economic growth. BI projects 2023 economic growth between
4.5% and 5.3%, with an expectation of acceleration in 2024.
Anticipated improvements in 2024 include higher civil servant
salaries, the upcoming general election, and the development
of a new capital city. To support economic growth, BI is
implementing additional macroprudential policies and
advancing payment system digitalisation in collaboration with
the government's fiscal policy.
Inflation in Indonesia is well-controlled within the target range,
with the Consumer Price Index (CPI) registering at 2.28% year-
over-year (y/y) in September 2023, a decrease from 3.27% y/y
of the previous month. The decline is attributed to lower core
inflation and administered price (AP) inflation, while volatile
food (VF) inflation accelerated due to rising rice and beef
prices. The stability in inflation is a result of consistent
monetary policy and collaborative efforts between BI and the
central and regional government. Despite this, the bank
remains vigilant about potential inflationary risks, including
higher international food and energy prices and rupiah
depreciation. BI commits to reinforcing its monetary policy
approach and maintaining close collaboration with the
government to ensure inflation remains within the target range
of 3.0%±1% for the current year and 2.5%±1% in 2024.
During the BI Board of Governors Meeting in October 2023,
Indonesia raised the BI 7-Day Reverse Repo Rate by 25 basis
points to 6.00%, alongside increases in the Deposit Facility and
Lending Facility rates to 5.25% and 6.75%, respectively.
This decision aims to strengthen the rupiah stabilisation policy
amidst global uncertainties and proactively address potential
imported inflation. The adjustments aim to keep inflation within
the targeted corridor while simultaneously supporting economic
growth through macroprudential policies and prioritising digital
financial transactions.
13,500
14,000
14,500
15,000
15,500
16,000
Oct-22
Nov-22
Dec-22
Jan-23
Feb-23
Mar-23
Apr-23
May-23
Jun-23
Jul-23
Aug-23
Sep-23
MILLIMAN INDONESIA LIFE INSURANCE NEWSLETTER
7 January 2024
As per SEOJK NO 27/SEOJK.05/2017 and SEOJK NO
28/SEOJK.05/2017, the maximum discount rate assumption
allowed in determining the premium reserves is the Indonesia
Bond Pricing Agency (IBPA) published average yield of
securities issued by the Indonesian government for the prior
12 months, plus an additional 0.5%.
The table below shows the derivation of the maximum discount
rates as at 30 September 2023.
IDR
IDR
TENOR
AVERAGE
OF LAST
1 YEAR
AVERAGE OF
LAST 1 YEAR
+ 0.5%
TENOR
AVERAGE
OF LAST
1 YEAR
AVERAGE OF
LAST 1 YEAR
+ 0.5%
1
5.86
6.36
16
7.10
7.60
2
6.13
6.63
17
7.12
7.62
3
6.26
6.76
18
7.13
7.63
4
6.37
6.87
19
7.15
7.65
5
6.46
6.96
20
7.15
7.65
6
6.56
7.06
21
7.16
7.66
7
6.65
7.15
22
7.17
7.67
8
6.73
7.23
23
7.17
7.67
9
6.81
7.31
24
7.17
7.67
10
6.87
7.37
25
7.18
7.68
11
6.93
7.43
26
7.18
7.68
12
6.98
7.48
27
7.18
7.68
13
7.02
7.52
28
7.18
7.68
14
7.05
7.55
29
7.18
7.68
15
7.08
7.58
30
7.18
7.68
Source: Milliman calculations based on Indonesia Bond Pricing Agency (IBPA).
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