Millennial Insurance Implementation, Askrindo Holds Insurance Literacy

Photo: Doc. Askrindo

JAKARTA - Based on data from the Financial Services Authority (OJK), Indonesia's insurance penetration of Gross Domestic Product (GDP) has only reached 3.18 percent in 2021. In detail, penetration of life insurance in Indonesia has only reached 1.19 percent, general insurance 0.47 percent, social insurance 1.45 percent, and mandatory insurance 0.08 percent with insurance desitivity figures of IDR 1.82 million.

Meanwhile, the 2019 National Survey of Financial Literacy and Inclusion (SNLIK) showed a new financial literacy index of 38.03 percent with a new insurance literacy rate of 19.4 percent. At a time when Indonesia's financial inclusion index reached 76.19 percent.

PT Asuransi Kredit Indonesia or Askrindo views the importance of understanding insurance from an early age, especially the millennial generation and Generation Z. Insurance is part of a long-term investment that should be in demand by various groups. In the context of the Financial Inclusion Month and in accordance with OJK's directives, Askrindo conducts Insurance Literacy activities or Insurance introduction for STIMRA students.

Luluk Lukmiyati, Head of Corcomm of PT Askrindo, said that currently the population is dominated by people aged 15-40 years who are Millennials and Generation Z. However, the low index of insurance literacy encourages Askrindo to continue to provide fundamental understandings about Insurance.

People often delay insurance because they feel they have sufficient savings to anticipate an emergency, even though insurance is very useful for closing unexpected expenses that are quite large, such as when sick, accidents, losing their homes. Insurance is one of the main foundations of a healthy finance. Here Askrindo sees young people have begun to understand investing but still lacks interest in insurance, "said Luluk in Jakarta, Wednesday, October 19.

The Insurance Industry has challenges to develop more diverse insurance products. With increasingly diverse products, the penetration of insurance in the community will certainly increase even more. Askrindo has the DigiAsk 4.0 application, where the application is one of Askrindo's transformations in the IT field in order to increase penetration into the retail segment.

Askrindo hopes that, with this insurance literacy, the public, especially millennials and Generation Z, will be more aware and interested in insurance products. Moreover, insurance is currently very easy to obtain only with a cellphone and it is very easy to submit claims, one of which is through the DigiAsk 4.0 application which can be downloaded through the Playstore and Appstore," Luluk concluded.