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Jakarta Post

Maipark gathers earthquake data to help determine disaster insurance premiums

  • News Desk

    The Jakarta Post

Jakarta   /   Thu, August 29, 2019   /   03:28 pm
Maipark gathers earthquake data to help determine disaster insurance premiums PT Asuransi Wahana Tata (Aswata) president commissioner Rudy Wanandi (left), Reasuransi Maipark Indonesia president director Ahmad Fauzie Darwis (second left), Financial Services Authority deputy commissioner for supervising the nonbank financial industry M. Ichsanuddin (second right) and Aswata president director Christian Wanandi hold an earthquake detector seismometer. The borehole seismometer was installed at therear of the Aswata office in Jakarta on Tuesday, Aug. 27, 2019, aiming at gathering primary digital data as a main reference in the insurance industry. (JP/Dhoni Setiawan)

Reinsurance company PT Reasuransi Maipark Indonesia has installed borehole seismometers in seven places in Jakarta to gather information on earthquake risks and help insurance companies to determine disaster insurance premiums.

Maipark’s research and development team worked with the Bandung Institute of Technology's Industrial and Research Affiliation Institution (LAPI-ITB) to install the seismometers at the Baribis fault.

The Baribis fault is an active fault that runs across Java in both the east and the west. According to a survey from the Indonesia Geology Agency, part of it is located around 10 kilometers south of Jakarta.

“By understanding the risks of earthquakes, we can inform insurance companies and help them determine their disaster insurance premiums,” Maipark president director Ahmad Fauzie Darwis said during the company's most recent seismometer placement ceremony at the PT Asuransi Wahana Tata (Aswata) office on Tuesday.

He added that in 2017, national earthquake insurance portfolios amounted to Rp 3.5 trillion (US$245.5 million) with more than 50 percent of exposures located in the western part of Java.

After one year of data collecting, Ahmad said, his team would move the seismometers to Surabaya and begin collecting earthquake data in other high-risk areas in East Java, where the Kendeng fault, which is adjacent to the Baribis fault, is located.

In addition to the earthquake study, Maipark aims to finish by next year three other disaster-related research studies on tsunamis, floods and volcanic eruptions.

Ahmad said the tsunami study would be an extension of the earthquake study as the two disasters often happened in sequence.

“We already have the best disaster model for flooding in Jakarta and we plan to expand our research to Karawang in West Java,” he added, referring to a busy industrial area near Jakarta.

Meanwhile, the volcanic eruption study would focus on Java, as most of the country's active volcanoes were located on the island, he told the press. (eyc)