OJK Estimates Nearly Rp1 Trillion in Insurance Claims from Sumatra Floods

Potential Claims Breakdown

The Financial Services Authority (OJK) has estimated that the total insurance claims resulting from the recent floods in Sumatra could reach nearly Rp1 trillion. This estimate is based on data collected from 39 insurance companies operating in the affected regions of Aceh, North Sumatra, and West Sumatra. The breakdown of potential claims includes:

• Property damage: Rp492.53 billion
• Vehicle damage: Rp74.50 billion
• Damage to state-owned assets: Approximately Rp400 billion

OJK's Response and Regulatory Measures

In response to the disaster, OJK has taken several regulatory measures to facilitate the insurance claim process. On December 10, 2025, during the OJK Board of Commissioners Meeting (RDK), the authority decided to:

1. Request insurance and reinsurance companies to activate disaster response mechanisms
2. Simplify the claim process for affected policyholders
3. Conduct initial assessments of losses covered under insurance policies
4. Enhance communication and services to policyholders
5. Coordinate with relevant agencies such as BNPB, BPBD, and Reasuradur

OJK Chairman Mahendra Siregar emphasized that these measures aim to provide relief and support to individuals and businesses affected by the floods. The authority also requested regular updates on claim handling progress from insurance companies.

Industry Response

The insurance industry has responded positively to OJK's directives. The Indonesian General Insurance Association (AAUI) reported that its member companies are currently conducting early assessments to determine the extent of damage and insurance coverage in the affected areas. AAUI has encouraged its members to handle claims in a quick, transparent, and fair manner in accordance with policy terms.

The Indonesian Life Insurance Association (AAJI) has also supported the initiative by suggesting that insurance companies provide relaxation in the claim process for policyholders facing difficulties in submitting required documents due to the disaster. This measure aims to balance the need for efficient claim processing with thorough verification to prevent potential insurance fraud.