OJK stress test finds life insurers more affected by stock market pressure

Indonesia’s Financial Services Authority (OJK) said its stress testing found that stock market pressure had affected life insurers more than general insurers. The regulator is assessing which companies have seen their risk-based capital ratios fall below 120 per cent.

Sumarjono, head of OJK’s department supervising insurance, guarantees and pension funds, outlined the findings at an Insurance Day press conference in Jakarta on 20 October 2026. He said life insurers’ holdings of shares, government securities and bonds left them exposed to market movements.

OJK asked insurers to keep monitoring asset quality and capital levels so they could meet obligations to policyholders. It also called on company investment committees to strengthen risk management and take measures suited to their individual circumstances.

Sumarjono said the committees should reassess their investment strategies in light of current market conditions, which might not persist. He added that OJK was continuing efforts to restore public confidence in financial services and hoped a stock market recovery would also improve insurers’ conditions.

Indonesia’s benchmark IHSG fell more than 11 per cent on 16 October 2026, its steepest single-day decline in 28 years, or since the 1998 monetary crisis. The fall followed MSCI’s opening of a consultation on 15 October 2026 over a possible change in Indonesia’s market status from Emerging Market to Standalone Market.