Indonesia Underwriting Summit 2024 Emphasizes The Importance Of Underwriter Collaboration And Claim Management

JAKARTA - The Indonesian Mental Underwriters Association (PERUJI) is again holding the Indonesia Underwriting Summit (IUS) 2024 with the theme Team Up and Accelerate! Underwriting-Claim Collaboration to Enhance Business Process and Portfolio. In accordance with the theme, the celebration of the one-decade milestone of THIS PERUJI not only marks PERUJI's commitment to advancing the underwriting profession but also serves as a spirit of collaboration and innovation in the insurance industry.

The head of PERUJI, who also serves as the Strategic Development Division Head of PT Reasuransi Indonesia Utama (Persero) (Indonesia Re), Radix Yunanto, said that this Summit aims to dive deeper into the transformative strength of the synergy between underwriting and Klaim Management. By strengthening this synergy, we are trying to simplify the business process, ensuring greater resilience and adaptability in the face of the growing market dynamics," explained Radix in a media statement, Friday, August 16.

Ditambahkan oleh Ketua Organisa Indonesia Underwriting Summit ke-5 Zulhamdi Rahman, puncak acara tersebut berlangsung di Bandung, Jawa Barat, pada tanggal 14 dan 15 Agustus 2024. Dalam Summit tersebut, turut hadir Deputi Komisioner Pengawas Pesurance, Penjaminan dan Dana Pensiunan Otoritas Jasa Keuangan (OJK) Iwan Pasila, Ketua Dewan Asuransi Indonesia (DAI) Yulius Bhayangkara, Ketua Asuransi Jiwa Indonesia (AAJI) Budi Tampubolon, Ketua Sumatran Indonesia (AAMAI) Dr. Robby Loho, APAI, AAI-K, ICBU, ICPU, AMRP, FMII, ANZIIF (SNR.ASSOC) CIP, Ketua Persatuan Aktuaris Indonesia (PAI) Paul Setio Kartono, Direktur Utama BPJS Kesehatan Prof dr Ali Ghufron Mukti, M.Sc, Phd, AAK, para pemimpin industri, experts, and stakeholders dari dari seluruh Industri Asuransi di Indonesia.

Trend Of Increase In Life Insurance Industry Claims

The Indonesian Life Insurance Association (AAJI) highlighted the upward trend in claims for health insurance which will continue until 2024. In the period January to March 2024, the life insurance industry in Indonesia has paid health insurance claims of IDR 5.96 trillion. This figure is quite high, which is 29.6% compared to the same period in 2023.

In AAJI's notes, health claim growth has always been in the range between 25% to 30% since mid-2022. This figure has exceeded the medical inflation (medical inflation) rate that occurred in Indonesia, which is 13% in 2023. In nominal terms, the pool's health insurance claims increased 21.9% to Rp2.07 trillion qtq and increased 32% compared to the first quarter of 2022.

Underwriter professions and claim management are the heart of the insurance industry, both of which have very close links in their work processes. Underwriters play a role in the risk identification and selection process (underwriting) with the aim that prospective candidates are responsible for getting a premium burden that is in accordance with the risks they have. With this process, it is hoped that justice will be created in the charge of premiums for insurance companies and customers.

Radix explained that the upward trend of claims in the life insurance industry is currently an alarm for us to increase synergy and collaboration between underwriters and claim management. Underwriting processes are vital because after risk identification is completed, then underwriters can group the insured candidates into the appropriate risk category, namely: declined risk, substandard risk, standard risk, and priored risk. Here, the role of underwriters and claim management is closely related. Because this risk category will be a guide for claim management in granting claims submitted by customers," he said.

The synergy between underwriter and claim management is currently considered not optimal and can be increased. So this is the momentum for the 5th Indonesia Underwriting Summit (IUS) to raise the theme "Team Up and Accelerate! Underwriting-Claim Collaboration to Enhance Business Process and Portfolio".

Then AAJI also observed that insurance claim submissions increased very significantly in the last three years after the Covid-19 pandemic. In comparison, in the first quarter of 2022, the number of claims submitted was in the range of IDR 3.32 trillion, then increased to IDR 4.6 trillion in the first quarter of 2023, and then jumped to IDR 5.96 trillion in the first quarter of 2024.

Included in this trend is the increase in individual health insurance claims which reached Rp3.89 trillion (up 34% qtq) during the January-March 2024 period. Compared to the first quarter of 2022, this figure also reflects a very significant increase with the percentage reaching 42.7%.

This trend has received serious attention from the Financial Services Authority. Deputy Commissioner for Insurance Supervision, OJK Guarantee & Pension Fund, Iwan Pasila in his remarks at IUS 2024 activities conveyed that an insurance company must be able to profile and map risks according to market segmentation and its challenges where the underwriting and claim process is the key to its success," said Iwan.

Chairman of the AAJI Management Board, Budi Tampubolon, revealed that underwriters and claim are 2 of the 3 most important professions in life insurance other than actuaries, in accordance with the life insurance roadmap prepared by the OJK regarding professional strengthening and development. So that the function of underwriting for profiling of prospective beneficiaries can be precise", said Budi.

Furthermore, Chairman of the Indonesian Actuary Association (PAI) Paul Setio Kartono added, "collaboration between underwriters, claims and actuaries is needed for the advancement of the company and the insurance industry, so that there is no pointing at each other looking for mistakes but looking for solutions," Paul added.

Then as the head of the largest health insurance service provider in Indonesia, President Director of BPJS Kesehatan Prof. dr. Ali Ghufron Mukti, M.Sc, Phd., AAK stated that BPJS is committed to providing comprehensive health protection and services to all Indonesian people. And with the collaboration of claims and other supporting services, it will be able to improve service quality and make BPJS as a non-deficit social health insurance, but it can show surplus numbers," concluded Prof. Ali.