March 20, 2026 | 12:22 pm
TEMPO.CO, Jakarta - The Chief Executive of Insurance, Guarantee, and Pension Fund Supervision at the Financial Services Authority (OJK), Ogi Prastomiyono, said that the insurance industry is facing greater risks amid the rising geopolitical tensions. These risks arise, among others, through increased logistics costs, supply chain disruptions, and energy volatility.
"Business lines that are relatively more affected include marine cargo, property, and energy on-shore, as the exposure to risks in global trade and transportation rises," said Ogi in a written statement, quoted on Friday, March 20, 2026.
Ogi explained that reciprocal tariffs from the United States and escalating conflicts in the Middle East could potentially suppress global trade, thus affecting the growth of premiums and increasing risks in marine cargo insurance.
According to Ogi, the risks in marine cargo insurance must be addressed by strengthening underwriting, adjusting premium rates, and being more cautious with risk management.
Based on January 2026 data, the marine cargo business line in general insurance and reinsurance recorded premiums of Rp1.33 trillion or 7.23 percent of the total general insurance and reinsurance premiums. The value decreased by Rp0.18 trillion or 11.91 percent annually.
Ogi believes that global turmoil risks affecting adjustments, such as reinsurance prices and increased risk perception. However, premium adjustments are generally made gradually while still considering market conditions and the principles of cautious underwriting.
Ogi argued that global economic volatility could affect the performance of investment-based products such as unit-linked products. This is because the value of these products follows the dynamics of the capital market.
"This condition also has the potential to increase the cash value claims on investment-linked insurance products (PAYDI products)," said Ogi.
However, based on January 2026 data, cash value claims for PAYDI products actually decreased by 3.69 percent y-o-y, signaling that market pressures have not, thus far, significantly driven fund withdrawals by policyholders.
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