Life Insurance Technology
Life insurance companies require a robust Insurance Core System covering policy administration, underwriting, claims processing, commission management, and actuarial modeling. Products range from traditional (endowment, whole life, term) to unit-linked and hybrid products — all requiring flexible product configuration. Multi-level agent hierarchies with complex commission structures (override, bonuses, incentives) demand automated calculation. Additionally, PSAK 74 (IFRS 17 equivalent) implementation requires granular data management and Contractual Service Margin (CSM) calculation. Arunika Consulting helps life insurers implement and modernize their core systems for operational efficiency and regulatory compliance.
Compliance Warning
This industry is considered high risk and may receive closer attention from tax authorities. Professional tax consultation is strongly recommended.
Technology Challenges
Policy Administration Complexity
Traditional products (endowment, whole life, term) plus unit-link and hybrid products must coexist in one system with flexible product configuration for rapid new product launches.
Multi-Level Agent Commission
Agent hierarchies with override commissions, bonuses, and incentives create complex calculation requirements. Errors in commission calculation cause agent dissatisfaction and regulatory risk.
PSAK 74 / IFRS 17 Readiness
PSAK 74 requires granular data at the contract level, CSM calculation, and detailed disclosure. Existing systems often lack the data granularity and actuarial integration needed.
Digital Customer Experience
Customers expect self-service portals for policy inquiries, premium payments, claims tracking, and policy changes. Legacy systems struggle to support modern digital channels.
Regulatory Reporting Automation
OJK requires detailed reports on policy reserves, risk-based capital, and reinsurance. Manual report preparation is slow and error-prone.
Our Technology Solutions
Modern Policy Administration System
Cloud-ready PAS with flexible product configurator supporting traditional, unit-linked, and hybrid products with automated underwriting and policy issuance.
- Fast product launch cycles
- Multi-product support
- Scalable as business grows
Commission Calculation Engine
Automated commission engine for multi-level agent hierarchies covering first-year, renewal, override, and bonus calculations with agent self-service portal.
- Accurate commission always
- Agent satisfaction improved
- Commission cost controlled
PSAK 74 / IFRS 17 Platform
Actuarial data mart and CSM engine providing contract-level data granularity, automated CSM calculation, and disclosure report generation.
- PSAK 74 compliant
- Automated calculations
- Audit trail maintained
Digital Customer and Agent Portal
Self-service portals for policyholders (inquiries, payments, claims) and agents (sales, commissions, performance) with mobile-first design.
- Customer satisfaction improved
- Agent productivity enhanced
- Operational cost reduced
Claims and Underwriting Automation
Digital claims intake with FNOL, automated adjudication for simple claims, and AI-assisted underwriting for faster policy issuance.
- Claims cycle time reduced
- Underwriting efficiency improved
- Straight-through processing
Related Tax Regulations
POJK 16/2017
Insurance IT Regulation
Information system requirements for insurance companies
ISO 27001
Information Security
Policyholder data security standards
Need Technology Solutions for Life Insurance Technology?
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Free Consultation via WhatsAppLife Insurance Technology Consulting Services Across Indonesia
We support clients in major Indonesian cities. Find a location-specific service page for your area.
Bali
Banten
Daerah Istimewa Yogyakarta
Jawa Tengah
Jawa Timur
Kalimantan Barat
Kalimantan Selatan
Kalimantan Timur
Kepulauan Riau
Riau
Sulawesi Selatan
Sulawesi Tengah
Sulawesi Tenggara
Sulawesi Utara
Sumatera Utara
Sumatra Selatan
Frequently Asked Questions
What is a Policy Administration System (PAS)?
PAS is the core system for life insurance operations: (1) New business — application processing, underwriting, policy issuance; (2) Policy servicing — changes, top-ups, withdrawals, surrenders; (3) Billing and collection — premium billing, payment processing, reinstatement; (4) Claims — claim intake, adjudication, payment; (5) Commission — agent commission calculation including overrides. A modern PAS must be digital-first, API-enabled, and PSAK 74 ready.
What is the typical cost of a life insurance core system?
Implementation costs vary by company size. Small insurers (under 50,000 policies): IDR 2-5 billion. Mid-size (50,000-500,000 policies): IDR 5-15 billion. Large (500,000+ policies): IDR 15-50 billion. Cloud-based PAS solutions are increasingly available, reducing upfront infrastructure costs. Annual maintenance typically 15-20% of implementation cost.
What does PSAK 74 mean for insurance technology systems?
PSAK 74 (effective January 2025) requires: (1) Contract-level data for all insurance contracts; (2) CSM (Contractual Service Margin) calculation at each reporting date; (3) Discount rate determination per portfolio; (4) Risk adjustment calculation; (5) Detailed disclosure notes. Insurers need actuarial data marts that can extract and transform policy data from the PAS into PSAK 74 formats, with full audit trails and version control.
What are the OJK technology requirements for life insurers?
POJK 16/2017 requires: (1) Information systems supporting policy administration, claims, and reinsurance; (2) Electronic record keeping; (3) Business continuity planning; (4) Data security measures; (5) Regular IT system audits. The regulation applies to all insurers with implementation proportional to business scale.
Will system migration disrupt daily operations?
We usually use a parallel-run approach so the old and new systems operate together during transition, reducing downtime and data risk.
Can accounting software connect to POS and bank data automatically?
Yes. We design API and import workflows for POS, marketplaces, and bank statements to reduce manual entry and reconciliation errors.
Which software is best for my industry?
The right choice depends on transaction volume and complexity. We assess your workflow before recommending cloud accounting, POS, ERP, or dashboard tools.
Related Industries
General Insurance Technology
KBLI 65120
General insurance core system: underwriting, claims management, reinsurance automation, and regulatory reporting for P&C insurers in Indonesia.
Life Insurance Accounting
KBLI 65110
Life insurance bookkeeping: PSAK 74, policy liability, DAC, RBC. Insurance accounting by Arunika.
Life Insurance Tax
KBLI 65110
Life insurance tax in Indonesia: agent commission withholding PPh 21/23, VAT exemption on premiums, claim tax treatment, and deferred tax for insurers.