Through IFG Progress, Insurance Literacy Built With Data And Action

JAKARTA - In the midst of the challenges of low public understanding of insurance, Indonesia Financial Group (IFG) comes with a different strategy, not only relying on conventional education approaches, IFG also integrates data-based research and real action in the field through its research institute, IFG Progress.

Founded as a center for public policy studies and recommendations in the insurance, guarantee, and investment sectors, IFG Progress acts as eyes and ears' in designing impacting financial literacy and inclusion strategies.

With a routine and comprehensive scientific research method, IFG Progress analyzes the gap between literacy and inclusion, as well as identifies factors that hinder the penetration of insurance in the community.

"So, every IFG innovative program and product is born from IFG Progress in-depth data and analysis, ensuring that every step we take is impactful," said IFG Corporate Secretary, Denny S. Adji to VOI, Saturday, October 4.

Denny emphasized that the results of research from IFG Progress were used to provide input and thoughts in encouraging increased literacy and inclusion in the insurance sector.

The IFG approach to insurance literacy is not one-way in nature. The education built targets segments that have been minimally affordable, such as young families, MSME players, informal sectors, the younger generation, to the sharia segment.

Armed with the findings of IFG Progress, the education carried out is not only in the form of theory, but also practical simulations that are easy to understand. For example, how insurance can protect food stalls from fires, or how the benefits of compensation can protect the family's future when a disaster occurs.

"We understand that public trust needs to be regained and literacy is the foundation," said Denny.

One of the tangible results of IFG Progress research is the encouragement to create affordable, simple, but maximum benefits. IFG through its subsidiaries, such as IFG Life, Jasa Raharja, Jasindo, and Askrindo presents various micro and digital insurance products.

For example, LifeSAVER from IFG Life, self-accident insurance products with premiums starting at IDR 25,000 per month and there is also a Third Party Liability (TPL) product from Jasa Raharja Putera which protects drivers from losses due to accidents involving third parties.

Not only that, IFG utilizes the digital platform One by IFG, a super app application that makes it easier for people from fishermen on the coast to informal workers in big cities to buy, manage, and claim insurance products and other financial services easily.

"Digitalization is not only about convenience, but about creating human and personal experiences for segments that were previously unaffordable," said Denny.

IFG also believes that inclusion cannot be achieved alone. So, collaboration with various stakeholders is an inseparable part. Starting from regulators, ministries, local governments, other SOEs, financial institutions, to fintech and local communities, all invited to synergize.

One example is the Farmers Insurance and Fishermen program in collaboration with the Ministry of Agriculture and local governments. Then, synergy with banks such as Bank Mandiri and Bank BTN through the bancassurance scheme for mortgage customers.

In addition, from a private perspective, IFG cooperates with fintech to insert micro insurance products into digital payment applications.

"Collaboration is our DNA. We believe that inclusion cannot be achieved individually," said Denny.

"Essentially, we act as orchestrators' who unite various players to create more harmonious financial inclusion," he added.

IFG not only pursues the insurance inclusion target quantitatively, behind numbers, strong social missions are stored, namely building a healthy, fair, and sustainable financial ecosystem.

Through the Sustainable and Inclusive Growth approach, IFG ensures that social goals are not separated from core business strategies.

He conveyed that like the Kindness to Progress program, it is an example of how the value of the company is realized in real action, namely in four villages, starting from Magelang, West Bandung, to Malang, IFG implements a community empowerment program that has a measurable impact.

The impact of this program has been measured using the Social Return on Investment (SROI) method, reaching 4.99 and the value of the net economic impact of IDR 1.63 billion.

In addition, IFG supports literacy through book distribution to village libraries and Community Reading Parks (TBM) in 34 provinces, as well as holding a volunteering program that strengthens social ties between companies and the community.

Based on data from the OJK National Literacy and Financial Inclusion Survey (SNLIK), the financial literacy index in the insurance sector increased from 36.90 percent to 45.45 percent perseb in 2025. Meanwhile, the inclusion index increased from 12.21 percent to 28.5 percent. Although this is national data, IFG contributes through education, micro products, and collaborative strategies.

In the future, he said that IFG targets a significant increase in product penetration, literacy education, and expansion of measurable and sustainable digital access.

According to him, all of these efforts will continue to be monitored and evaluated by IFG Progress to ensure its effectiveness and impact on society.

"Each of these targets is closely monitored by IFG Progress, and is a compass for all holding members to move together," he concluded.

Meanwhile, insurance observer Irvan Rahardjo assesses that insurance inclusion in Indonesia is still very low and an urgent matter to improve, because Indonesia is one of the most disaster-prone countries in the world because it is located in the Pacific Ring of Fire which is surrounded by active and earthquake-prone volcanoes.

According to Irvan, there are two big problems that have been the main obstacle to the development of the insurance sector in Indonesia, namely minimal financial literacy, and low public income.

This condition is also reflected in the contribution of the insurance sector to the national economy, where the ratio of gross premium to Indonesia's Gross Domestic Product (GDP) in 2022 only reached 2.76 percent or decreased from 3.13 percent in the previous year.

"This means that by shrinking the number of Indonesian middle class and the current weak purchasing power of the insurance sector's contribution to GDP, it is increasingly depressed," he told VOI, Saturday, October 4.

On the other hand, Irvan also highlighted the insurance industry's approach which is considered not optimal in reaching the wider community.

According to him, so far the approach taken is still business-to-business (B2B), more targeting corporations than individuals. In fact, there needs to be a transformation towards a business-to-consumer (B2C) approach that touches the needs of the community more directly, especially through the community.

Furthermore, he assessed that collaboration between insurance industry players and research institutions is still very limited. Currently, the cooperation that is established generally only involves regulators and industry associations.

According to him, to encourage inclusive and sustainable growth, it is necessary to take a collaborative approach based on penta helix.

"We have to use the penta helix approach, namely a collaborative model involving five main elements, namely the government, academics, businesses (the private sector), the community (community), and the media, to achieve joint goals in a synergistic and sustainable manner to maintain product quality and protection," he said.