OJK Says Technology Can Expand Insurance Reaches And Services

OJK (photo: dock. Antara)

JAKARTA - The use of technology is useful for expanding the reach and services of insurance.

In addition, the use of technology can also be used to prevent mis-selling in the insurance product marketing process, such as the use of large data analysis and artificial intelligence to ensure the suitability of the product offered with the profile, preferences, and needs of policyholders.

"The potential for the use of technology in the insurance sector is very large. This utilization can be used to expand the reach and services of insurance," said OJK's Chief Executive of Insurance, Guarantee and Pension Fund Ogi Prastomiyono quoting Antara.

"The use of technology not only benefits the marketing side, but also improves the quality of the full-sale service, especially to provide convenience for the community in the process of resolving claims, paying insurance benefits, and allowing faster handling complaints," he said.

Ogi said that until 2030, the estimated value of Indonesia's digital economy reached more than 200 to 300 billion US dollars and Indonesia had 215 million internet users or 77 percent of the population.

For this reason, insurance companies in Indonesia need to adapt to the era of digitization and determine strategic steps to be able to transform by optimizing the use of technology in supporting the implementation of their business processes in order to improve the quality of services to consumers.

The OJK in collaboration with the Organization for Economic Co-operation and Development (OECD) launched a study on the use of technology in the insurance sector to increase risk assessment and reduce the risk of policyholders.

Meanwhile, Chair OECD Insurance and Private Pensions Committee (IPPC) Yoshihiro Kawai said technology could contribute to boosting the risk of policyholders by increasing the capacity of insurance companies in assessing risks.

Thus, companies can set prices more accurately, recognize risk better, and carry out better mitigation or risk management.

The application of the new technology certainly needs to be managed carefully by service providers and through developing a suitable regulatory and supervisory framework so as to ensure that consumer protection is guaranteed.