Literacy Is Good, Insurance Industry Asks To Keep Community Trust

Economic observer Aviliani. (Photo: Doc. Antara)

JAKARTA - Economic observer Aviliani said that currently the development of insurance is starting to develop in a better direction. This is because the increasing number of people are educated and the high number of millennials is mostly in the middle class.

"In my opinion, the development insurance has indeed started to grow tremendously and they already have very good literacy about finance, so the insurance has grown better in 2021 until now," he said online at the Insurance Awards event in Jakarta, Thursday, October 13.

For this reason, Aviliani suggested to insurance companies to maintain public trust because recently there have been several cases from insurance companies that can damage the image of the insurance industry. One of them is by making improvements, especially the occupancy that must also be carried out by the Financial Services Authority (OJK).

"In my opinion, it must be corrected immediately, especially the supervision by the OJK so that in the future the insurance company will be more trusted by the public and the potential of this large community will be absorbed," he continued.

The second thing that must be done by insurance companies is to enter the retail sector. Because if only corporations or institutions are entered, retail sectors such as MSMEs and so on will be left behind.

"For example, now it's a cycling trend. Now the bike can be insured, so this is what I think the product development should be more," he continued.

The third thing that must be done, said Aviliani, is to improve the performance of the insurance company's program, which is still unresolved.

"If everything is finished, the other industries will not be affected because people still believe in the insurance industry," he concluded.

Meanwhile, based on the records of the Indonesian General Insurance Association (AUI), insurance industry assets grew 13.2 percent in the second quarter of 2022 or reached IDR 1,675.8 trillion.

For life insurance, it grew 7.9 percent (Rp559.5 trillion) with a portion of 36 percent, while in general insurance the portion was 12 percent and 7.2 percent grew (Rp196.6 trillion).

As for the reinsurance, he continued, it has a portion of 2 percent with asset growth of 13.8 percent or reaching IDR 33.7 trillion.

Growth was also recorded by the insurance industry premium which reached IDR 266 trillion or grew slightly by 2.8 percent. Then claims, the insurance industry in the second quarter also recorded an increase of 13.8 percent with claims reaching IDR 186.4 trillion.

As of June 2022, AAUI recorded as many as 71 companies registered as general insurance companies, then insurement totaled 7 companies, as many as 155 insurance brokers and 41 insurance broker companies. As for the new general insurance agent certified, there was a decrease from 6,094 in 2021 to 1,829 to mid-2022.