Indonesian Insurers Implement Repricing Amid Rising Health Claims

Regulatory Response to High Claims Ratio

The Financial Services Authority (OJK) has reported that Indonesian insurance companies have undertaken repricing or premium adjustments for health insurance products during 2024-2025. This regulatory development comes in response to persistently high claims ratios in the health insurance sector. Ogi Prastomiyono, OJK's Executive Head of Insurance Supervision, confirmed that the adjustment has led to a more controlled claims environment and increased premium income for insurers.

Market Impact and Future Outlook

The repricing measure has been instrumental in stabilizing the health insurance market by aligning premium income with claims payouts. According to Ogi Prastomiyono, the growth rate of health insurance premiums has shown a significant increase, while claims ratios have become more manageable. This development is expected to enhance the overall sustainability of health insurance products in Indonesia's financial sector.