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Jakarta Post

Association sets new premium rates for flood insurance

  • Tassia Sipahutar

    The Jakarta Post

Jakarta   /   Tue, February 19 2013   /  11:36 am

In anticipation of increased demand for property insurance, particularly against flooding, the Association of General Insurance Companies (AAUI) has introduced a new premium rate scheme about 20-30 percent higher than the current rates.

AAUI chairman Kornelius Simanjuntak said demand for property protection always grew following natural disasters. “So we expect demand to increase after last month’s flooding [in Jakarta],” he said.

The new rates, which will take effect as of March 14, will be applied in the capital city first, before being implemented in other regions. They would serve as tariff guidance for insurance firms to anticipate the growing demand, Kornelius added.

“The AAUI has discussed this matter for the past two years because the old rates are no longer sufficient compared to the risks [we cover]. The January flood was evidence of how flood ris...