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View all search resultsPrudential sees ‘bullish’ growth in Indonesia amid rising medical inflation
Prudential's CEO of Health, Arjan Toor, and Prudential Indonesia’s Chief Health Officer, Yosie William Iroth, spoke with The Jakarta Post’s Ni Made Tasyarani about how the insurer is navigating challenges while seeking to tap into growth opportunities in Indonesia.
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CEO of Health Prudential plc Arjan Toor (left) and Chief Health Officer Prudential Indonesia Yosie William Iroth. (Prudential/-)
I
ndonesia is grappling with a health care access crisis, with 9 out of 10 patients admitting to delaying treatment due to everyday disruptions, according to a new survey by Prudential Indonesia, Prudential Syariah and think tank Economist Impact. In addition, the insurance sector has also been affected by various crises, from issues surrounding certain products to the pandemic and rising medical inflation.
Following the survey launch on Sept. 17, Prudential’s CEO of Health, Arjan Toor, and Prudential Indonesia’s Chief Health Officer, Yosie William Iroth, spoke with The Jakarta Post’s Ni Made Tasyarani about how the insurer is addressing these systemic hurdles and seeking to tap into growth opportunities in Indonesia.
How do you view the insurance industry landscape in Indonesia right now, considering the country’s low insurance penetration?
Yosie: From time to time, the life insurance industry is hit by some form of crisis, whether related to unit-linked products (a type of life insurance that combines protection with investment), the COVID-19 pandemic or now the medical inflation crisis. We have seen several health insurance players either exit the market entirely or withdraw from specific lines of business.
Regulators have also taken steps to strengthen the industry by introducing a customer protection law and enforcing a more disciplined approach to selling unit-linked products. This shows there is still significant room for improvement in our industry.
Yes, we face low penetration rates and low literacy, but we also have high inclusion. This challenge also presents an opportunity for us to run more financial literacy campaigns and equip our agents with a disciplined approach to deliver quality service. We currently have about 75,000 insurance agents, by far the largest in our market, and we continue to improve our training programs.
Toor: Insurance penetration is very low, but Indonesia’s emerging middle class is growing rapidly. That means people will ultimately have more money to spend to protect themselves and their loved ones. That is why we are very bullish on this market and continue to invest here.
