T

he Financial Services Authority (OJK) is always working to introduce insurance products to the lower-middle income bracket through micro-insurance services with affordable premiums. Ever since it launched its Micro Insurance Grand Design on Oct. 17, 2013, the number of micro-insurance customers has steadily risen. As of December 2014, the number has reached 6 million people.

According to Firdaus Djaelani, the OJK'€™s executive head of its non-banking industry regulator (IKNB), there are currently 53 companies that sell micro-insurance products. Its six million participants have premiums reaching Rp 106 billion and claim payments reaching Rp 71.76 billion.

'€œDon'€™t think about making profits yet. If the Indonesian economy grows, then the people will have more income. This will lead to a migration from the lower income to middle income bracket, which will lead to increased demand for insurance,'€ Firdaus was quoted by detik.com as saying.

Firdaus is confident that Indonesians would no longer be strangers to micro-insurance services within the next few years.

However, distribution problems still exist. Low premiums mean that marketing through agents or branch offices is not possible.