IFG And Indonesia Re Collaboration Review New Data Standardization In Insurance Industry

Photo: Doc. IFG

JAKARTA - Indonesia Financial Group (IFG), insurance BUMN holding, guarantee, and joint investment with PT Resurance Indonesia Utama (Indonesia Re) agreed on cooperation to encourage transformation in the insurance industry through standardization of the provision of new data and information.

Under the umbrella of 'Insurance Data Taxonomy Cooperation,' the agreement was contained in a memorandum of understanding (MoU) signed by both parties, in Jakarta, on Wednesday, February 28.

In the signing, IFG was represented by Technical Director Rianto Ahmadi and Indonesia Re by the Director of Operations Engineering Delil Khairat. Rianto said that the main background of the cooperation is an effort to strengthen risk analysis in business processes in the insurance industry through the availability of technical data (Chart of Account and Master Library technique) which is ideal in every business process and company's operations. The reason is, future insurance companies must move to the digitalization process in order to strengthen risk analysis based on the availability of ideal data.

Rianto added that the cooperation will accelerate the process of standardizing technical data, related to chart of Account (CoA) and master library techniques for insurance markets in Indonesia. In the basic information policy, IFG requires all holding members, both those engaged in general insurance, life insurance, and guarantees, to adjust the standardization of data management and information.

This is still a challenge because both holding members and almost all insurance companies have different standards in terms of presentation and management of data and information.

"For us, this collaboration not only further strengthens the transformation related to the standardization of data supply and information in the scope of holdings, but can also be a common reference for the insurance industry in the country. With Indonesia Re's position as a treatment leader, this standardization can be used by insurance companies that use the services of Indonesia Re," said Rianto.

For information, the MoU, which was signed by IFG and Indonesia Re, will regulate cooperation in the preparation and mapping of CoA engineering and master library. Both parties have the right to conduct joint reviews of CoA and master library submitted before making standards for the insurance industry, and encourage this standardization to be implemented consistently in the insurance industry.

CoA itself is a method of presenting data and information used in the financial industry, including in the insurance industry by classifying these data and information so that it is systematic, controlled, manageable, and reported.

Rianto emphasized that for the insurance industry, CoA standardization and master library will form a culture of measuring risks based on ideal data analysis and helping every company engaged in insurance to be able to develop business strategies, underwriting strategies, portfolio analysis-based risk management with accurate data.

"We want the standardization of the provision and management of ideal (standard, valid and detailed) data and information to be the main foundation in optimizing business and operational processes in the insurance industry," he stressed.

Meanwhile, Delil added, IFG and Indonesia Re have the same vision to transform the culture of presentation and management of data and information, so that the assessment carried out on business and operational processes is based on ideal data. This standardization will be applied to every insurance company that will use the services of Indonesia Re, and gradually become a standardization for all insurance industries.

"We are greatly helped by this collaboration because in the end Indonesia Re can implement equal data and information supply standards for all insurance companies and invite the insurance industry to transform with accurate data and information," he said.

"This collaboration is a form of commitment from IFG and Indonesia Re Group in supporting one of the pillars of the roadmap for the development and strengthening of Indonesian insurance 2023-2027 made by OJK together with all stakeholders in the industry, namely the digital transformation of the insurance industry," concluded Delil.