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Jakarta Post

Only 1.7% of Indonesians covered by insurance programs

  • News Desk

    The Jakarta Post

Jakarta   /   Mon, November 19, 2018   /   04:24 pm
Only 1.7% of Indonesians covered by insurance programs Customers speak to staff members of insurance company PT Asuransi Jiwa Manulife Indonesia. (Courtesy of/cdn-kisikisi.jobs.id)

Only 1.7 percent of about 265 million Indonesians have some form of insurance, a low rate the Indonesian Insurance Council attributes to a lack of awareness about the benefits of coverage.

“That is great opportunity for the insurance business,” the industry group’s chairman, Dadang Sukresna, said in the West Java capital city of Bandung over the weekend, as quoted by kompas.com.

He was speaking at Insurance Day, an event organized by insurers to explain the importance of insurance both to protect people against unexpected negative events and as part of their long-term investment plan.

“Our major target group is the millennials. Therefore, we disseminate insurance programs to university students, among others,” Dadang said, adding that events related to Insurance Day were held in 18 cities across the country, involving 6,065 people.

The event was recorded in the Indonesian Records Museum (MURI) as the largest such event, he added.

Meanwhile, the Financial Services Authority’s (OJK) nonbank financial industry executive supervisor, Riswinandi, said the penetration of insurance coverage was still far behind the penetration of banking products.

He said insurance companies needed to follow the trends of the millennials so that they were interested in signing up for insurance.

“Millennials have a different lifestyle. They tend to [prefer] quick services and easier procedures for purchasing certain items. They are also familiar with the digital world,” Riswandi added. (bbn)