Insurance Still Considered Complicated? IFG Changes Perceptions Through Education And Technology

IFG (Between) Company Office

JAKARTA In the midst of a low public understanding of insurance, the Indonesia Financial Group (IFG) is pursuing a different strategy by combining data-based research and field actions through its research institute, IFG Progress.

Founded as a center for public policy studies in the insurance, guarantee and investment sector, IFG Progress plays a role in designing scientific evidence-based financial literacy and inclusion strategies. IFG Corporate Secretary, Denny S. Adji said that every IFG program was born from an in-depth analysis of the research institute in order to have a real impact.

"Every step we take is based on data. The results of IFG Progress research are the basis for increasing national insurance literacy and inclusion," Denny told VOI, Saturday, October 4.

The literacy approach carried out by IFG is two-way, with education targeting young families, MSME players, the informal sector, the younger generation, to people in the sharia economy.

Education is also carried out through practical simulations such as the protection of small businesses from fire risk or compensation benefits for families of disaster victims.

From the results of research, IFG also develops simple and affordable insurance products, such as LifeSAVER from IFG Life with a premium starting at IDR 25,000 per month, as well as a Third Party Liability product from Jasa Raharja Putera.

In addition, IFG launched the One by IFG application so that people can buy and manage insurance products digitally.

"Digitalization for us is not just a matter of convenience, but creates personal experiences for segments that were previously difficult to reach," said Denny.

IFG also cooperates with various parties to expand insurance inclusion, such as the Ministry of Agriculture, Bank Mandiri, Bank BTN, and a number of fintechs to present micro-insured products on digital platforms.

"We act as drivers who unite various parties to accelerate financial inclusion," he added.

In addition to focusing on business, IFG carries out social missions through the Kindness to Progress program in four villages, such as Magelang, West Bandung, and Malang, which recorded a Social Return on Investment value of 4.99 with an economic impact of IDR 1.63 billion. IFG also distributes literacy books to 34 provinces and provides volunteer programs for employees.

Based on OJK data, the insurance sector literacy index increased from 36.90 percent to 45.45 percent in 2025, while inclusion rose from 12.21 percent to 28.5 percent. Denny said IFG continues to monitor program effectiveness through IFG Progress as a policy direction compass.

Meanwhile, insurance observer Irvan Rahardjo assesses that insurance inclusion in Indonesia is still low, even though this country is prone to disasters.

He said the main obstacle was the low level of financial literacy and people's purchasing power, so that the contribution of the insurance sector to GDP decreased to 2.76 percent in 2022.

According to Irvan, the industry needs to transform from a corporate approach to the community and expand cross-sectoral cooperation with the penta helix model involving the government, academics, business, community, and media so that growth is more inclusive and sustainable.