The Increase In Fuel Prices Will Be Affected By The Life Insurance Industry, This Is The Reason According To AAJI

Illustration. (Photo: Doc. Antara)

JAKARTA - Chairman of the Board of Executive Board of the Indonesian Life Insurance Association (AAJI) Budi Tampubolon assessed that the increase in fuel oil prices (BBM) has the potential to have an impact on the life insurance industry, if it triggers a high increase in inflation. "Because if prices become expensive or increase considerably, automatically the money that can be spent for other purposes will be reduced, that's true," Budi said in Jakarta, quoted from Antara, Tuesday, September 6. However, he has not been able to reveal further how much the increase in fuel prices will trigger an increase in inflation, because he still has to wait the next few months to see the effect clearer. According to Budi, the increase in fuel prices has occurred several times in the last years in Indonesia and the life insurance industry can still survive and be sustainable in the midst of these conditions, so it is hoped that the situation will be the same as it is today. Even now health, sharia, and collection insurances, are recorded to tend to increase, which shows that there are very specific needs from the community or some companies that must be able to be answered by the life insurance industry. Despite the increase, he assessed that the current increase in fuel prices was not excessive, in fact there were certain types of fuel whose prices actually decreased. "So we still see that even if there is an increase in inflation, it will not be as high as in several other countries," he said. With these conditions, he is still optimistic about the growth of life insurance in the future. In fact, there is a possibility that life insurance premium income in the second semester of 2022 will be better than the first semester of 2022 which amounted to Rp95.7 trillion.