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Insurance literacy program boosts premiums
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Insurance knowledge for kids: Students of Saint John Catholic School pose for a photograph during a lesson on financial literacy for kids provided by PT Sompo Insurance in BSD Serpong, Tangerang. The lesson is part of the company’s commitment to teach children about the importance of insurance at an earlier age. (Courtesy of PT Sompo Insurance Indonesia/File)
T
he insurance literacy program conducted by the Financial Service Authority (OJK) has had a positive impact on the country’s life insurance sector, bringing its total premium revenue to close to Rp 50 trillion (US$3.75 billion) in the first half of this year.
Indonesia Life Insurance Association (AAJI) chairman Hendrisman Rahim said on Monday that the financial literacy program, which involved government and businesspeople, had boosted life insurer companies’ outreach into many regions.
“Life insurance is penetrating the regions. Almost all companies have opened branches outside the big cities. This means that insurance products are more reachable,” he said.
He added that the e-insurance program that had been implemented by the industry also contributed to the growth of its premium revenue, set to rise above 20 percent by the end of this year.
The number of insurance agents reached 566,356 as of March, a 15.2 percent increase from the total number of agents last year. During the first quarter of this year, 38.3 percent of the industry’s total premium revenue was contributed by insurance agents. (rdi/ags)
