AAUI Strives To Suppress The Gap In Understanding The Role Of Insurance

Insurance (Photo: dock. unpslash)

JAKARTA - The Indonesian General Insurance Association (AUI) is trying to reduce the gap in understanding of the importance of insurance roles which are still the biggest challenges in increasing insurance inclusion in the country.

"There are still many people who do not understand the role of insurance as a financial protection tool and financing instrument most needed to manage risks," said AAUI Chairman Budi Herawan quoting Antara.

According to him, currently insurance is no longer limited to obligations but has become the basic need for people to face risks that can come without knowing time such as natural disasters and accidents.

To increase public literacy and trust, his party made a number of efforts, including an integrated national insurance literacy program.

"We believe strong literacy will give birth to awareness of the importance of risk management and mitigation in a sustainable manner of protection," he said.

In addition to integrated programs, AAUI also boosts product digitization and transparency through collaboration with various parties to design product information standardization by adopting information technology.

That way, he continued, it is easier for people to know, compare and understand insurance products and improve industry governance and ethics.

In line with Budi, Chairman of the Indonesian Insurance Council (DAI) Yulius Bhayangkara emphasized that increasing literacy and insurance inclusion is still homework and challenges so that it is always the main focus in commemorating Insurance Day every year.

"The Insurance Day is clear, building literacy," said Yulius.

This year, he said AAUI was the host of the 2025 Insurance Day.

Based on data from the 2025 National Literacy and Financial Inclusion Survey (SNLIK), the achievement of literacy and inclusion indexes in the insurance sector has increased.

The insurance literacy index increased significantly to 45.45 percent compared to 2024 by 36.9 percent, while the inclusion index also jumped to 28.50 percent from the previous year reaching 12.12 percent.

Although there has been an increase, from the data there is still a gap between inclusion and literacy, so it indicates that there are still people who use financial products but do not fully understand.

"Education and literacy in insurance needs to be done massively and continuously, so that insurance is easier to understand and receive by all levels of Indonesian society," he said.