OJK Issues Comprehensive Guidelines for Insurance Companies Post-Natural Disaster

Eight Key Measures to Enhance Claim Handling

The Financial Services Authority (OJK) has introduced eight critical measures for insurance companies to effectively manage the surge in claims following natural disasters. Ogi Prastomiyono, OJK's Executive Head of Insurance, Pension Fund, and Guarantee Supervision, emphasized that these guidelines are designed to ensure insurance companies can respond promptly and fairly to policyholders affected by the disaster.

Key Guidelines Issued by OJK

1. Rapid Response Activation: Insurance companies are required to form a dedicated claims handling team immediately after a disaster.
2. Simplified Claim Procedures: Companies are urged to streamline their claim processes and documentation to facilitate easier access for affected policyholders.
3. Exposure Assessment and Liquidity Stress Testing: Insurers must assess their exposure in the affected areas and conduct liquidity stress tests to prepare for potential claims.
4. Operational Risk Control: Companies are advised to activate their disaster recovery plans, including potentially shifting operations to alternative locations.
5. Public Communication and Customer Service: Strengthening public communication and customer service is crucial to maintaining public trust.
6. Coordination with Government Agencies: Insurers are encouraged to work closely with agencies like BNPB/BPBD to obtain accurate data on damage and casualties.
7. Reinsurance Coordination: Companies are advised to coordinate with reinsurers to ensure smooth claim recoveries and mitigate financial strain.
8. Reporting to OJK: Insurers must keep OJK updated on claim developments and risk profiles post-disaster.

Industry Response to OJK Guidelines

The Indonesian General Insurance Association (AAUI) has acknowledged the OJK's guidelines and is working with its members to implement them. As of now, member companies are conducting early assessments to determine the extent of damage and insurance coverage in the affected regions. AAUI has emphasized the importance of handling claims in a quick, transparent, and fair manner in accordance with policy terms.

The potential claims are expected to be significant, particularly in the property and motor vehicle insurance lines, given the scale of the damage caused by the floods and landslides in Sumatra.

Government's Response to the Disaster

The National Disaster Management Agency (BNPB) has reported that the death toll from the floods and landslides in Aceh, North Sumatra, and West Sumatra has risen to 442 as of December 1, 2025. The government is prioritizing the relief efforts and recovery of the affected areas, with BNPB Chief Suharyanto confirming that the administration is working to expedite the handling of affected citizens and the restoration of the impacted regions.