IHSG Performance Continues to Decline, Sharia Insurance Investments Under Pressure

REPUBLIKA.CO.ID, JAKARTA -- The national insurance industry faces pressure in early 2026 as weak financial markets impact investment returns, especially in the sharia insurance segment. On the other hand, the performance of claims on the line of credit businesses showed improvement compared to the previous month.

Ogi Prastomiyono, Chief Executive Officer of OJK Insurance, Underwriting and Pension Fund Supervisor said that, based on the March 2026 position data, the yield of sharia insurance investments suffered a significant contraction.

“Based on the March 2026 position data, sharia insurance investment yield contracted to negative IDR 121.84 billion, after previously being in a positive position of IDR 545.24 billion,” Ogi said in a written answer to the April 2026 OJK Board of Commissioners Meeting.

According to him, the development was mainly influenced by changes in market conditions, including the weakening of the Composite Stock Price Index (IHSG) by 14.42 percent on a month-to-month basis. That condition had an impact on the performance of equity-based investment instruments in the sharia life insurance portfolio.

Ogi explained that the pressure on the stock market caused the value of investments placed in equity instruments to deteriorate. This subsequently affected the overall investment performance of the sharia insurance industry in the first quarter of this year.

In order to maintain stability and improve the performance of investment returns going forward, the FSA called on industry to strengthen investment management and risk mitigation strategies.

“The industry needs to continue to strengthen portfolio diversification into more stable instruments, optimize asset liability management (ALM), strengthen risk management through stress testing, and improve governance and internal oversight in investment decision-making,” he said.

Meanwhile, on the credit line of business, the combined general insurance and reinsurance industries recorded improvements in claims ratios. Based on March 2026 position data, the ratio of credit line claims in the combined general insurance and reinsurance industries, both conventional and sharia, was recorded at 97 percent.

That's an improvement over the February 2026 position of 108.40 percent. Thus, on a month-to-month basis the claims ratio did not increase, but rather decreased which indicates an improvement in the performance of claims in the period.

This improvement in the claims ratio was judged to be a positive signal for the industry amid the challenges of financial market volatility and investment yield pressures that still cast a shadow over the national insurance sector.