Strengthening Credit Life Insurance Practices, Tugure Facilitates Industry Benchmarking in Thailand

Bangkok, Thailand (June 13, 2025) – PT Tugu Reasuransi Indonesia (Tugure), through its Tugure Academy initiative, once again demonstrated its commitment to enhancing literacy and the quality of the insurance industry in Indonesia. One of the manifestations of this commitment was the organization of a sharing session titled “Credit Life in Thailand Market”, held from June 12–14, 2025, in Bangkok, Thailand.

This activity was presented in response to the emerging regulatory challenges currently in the spotlight among industry players, particularly the Financial Services Authority (OJK) Regulation No. 20/2023 on the Implementation of Credit Insurance Products. This regulation mandates a minimum 25% risk retention by banks starting in 2024, which is expected to impact the risk structure and business strategies of credit life insurance in Indonesia.

As a proactive step, Tugure invited 11 business partners to conduct a benchmarking study in Thailand, in collaboration with Thaire Life Assurance Public Co., Ltd. (THREL). During the discussion session, Navadee Ruangrattanametee, Senior Vice President of Business Development at THREL, and Chutima Atthawethworawuth, Vice President of Alternative Marketing, shared the company’s risk management practices, including stringent risk selection, optimal terms and conditions management, and the strategic role of retrocession in maintaining the profitability of Credit Life products.

One topic that drew significant attention was the difference in approach between Indonesia and Thailand in managing credit life insurance. In Indonesia, this product is generally mandatory and managed by banks, leading to weak control over risk selection and premium rates that often do not reflect the actual risk. In contrast, in Thailand, customers are given the freedom to decide whether to purchase insurance protection, as there is no mandatory credit life protection requirement for bank-approved credit. This gives insurance companies greater room to perform objective and prudent risk selection. Additionally, insurance companies in Thailand are required to assess each insurance application individually, based on medical evaluations and financial considerations.

Dr. Kiki Oditya Gunawardhana, Life Group Head of Tugure, expressed appreciation for the insights shared by THREL.

“The business model and processes implemented by THREL provide valuable inspiration for strengthening our internal systems. There are many approaches that could be adopted to improve the practices currently in place in Indonesia,” said Kiki.

The activity also emphasized the importance of public education. The low level of insurance literacy in Indonesia—especially in understanding Credit Life products—remains a major challenge. Most people are only familiar with mandatory insurance such as BPJS, while protection through insurance for housing or vehicle loans is not yet widely understood.

In addition, Tugure is developing AI-based digital initiatives to improve the accuracy of its underwriting process. The web-based profiling system currently under development will analyze factors such as age, location, and medical history to more efficiently mitigate claim risks.

Through this activity, Tugure is not only reinforcing its role as a reinsurer that is adaptive to change but also actively contributing to building a healthier and more sustainable credit life insurance ecosystem. Data-driven approaches, sharp risk comprehension, and learnings from international practices are the cornerstones of Tugure’s strategy to promote a more robust future for the industry.