JAKARTA - WHO recently stated that the pandemic was over. However, health remains the most important thing that must be maintained in life. Insurance is one way to protect yourself and your family from health problems.
OJK data shows that the penetration rate of insurance in Indonesia in 2021 has only reached 3.18%, consisting of 1.45% of social insurance penetration, 1.19% of life insurance, 0.47% of general insurance, and the remaining mandatory insurance. In terms of growth in premium income in the insurance sector from January to November 2022, it reached IDR 280.24 trillion or can be declared stagnant growth with growth of only 0.44% compared to the previous year period.
This is in line with the results of the 2022 National Literacy and Financial Inclusion Survey (SNLIK), which shows that the insurance inclusion rate has increased less significantly from 13.15% in 2019 to 16.63% in 2022. The lack of rapid growth in the insurance sector can be caused by the low use and public trust in insurance products.
This is due to problems that often arise in the insurance sector in the form of a difficult claim process, an unaffordable premium by all circles, a lack of public access to insurance products and the potential for default.
This condition is a big challenge for insurance industry players to be able to change difficult conditions during the post-pandemic transition period to an opportunity to grow again. The indicator of the potential for the insurance industry can be seen from the increase in insurance sector literacy which according to the results of SNLIK in 2022 has increased significantly from 19.40% in 2019 to 31.72% in 2022.
With these conditions, many changes and challenges must be faced today, especially in the insurance industry. Underwriting as the front unit of an insurance company in managing risks must have sufficient provisions and are relevant to the demands of the period after the pandemic.
Chairman of the Indonesian Mental Underwriters Association (PERUJI), Radix Yunanto revealed that insurance is one of the economic pillars that has an important role in national economic development. So it takes the same collaboration and enthusiasm between insurance players in Indonesia to regenerate this industry. One of the important keys in life insurance companies is the underwriting process.
Through a good and correct underwriting process, the public will get the right insurance products with a premium burden that is in accordance with the risks they have. So that justice is created in the burden of premiums for insurance companies and customers. This will certainly increase public confidence in insurance products and can grow the industry back in a positive direction," said Radix Yunanto in a release received by VOI, Wednesday, May 17.
In order to improve the professionalism, knowledge and skills of Underwriters, PERUJI facilitated the 4th Indonesia Underwriting Summit (IUS) at Alila Hotel, Solo on May 16-17, 2023. This seminar was attended by 146 participants who work as underwriters of the soul, product teams, claim assessments and other related field practitioners of life insurance and reinsurance companies. Carrying the main theme of Underwriting: Beyond Pandemic, seminars at the IUS 2023 event discussed topics relevant to the current situation.
IUS 2023 received support from the Financial Services Authority (OJK) as a regulatory institution. This was conveyed by the Director of Insurance Supervision and BPJS Kesehatan OJK, Supriyono when he was present as a key note speaker at IUS 2023.
"PERUJI as a means of exchanging information between underwriters plays an important role in the underwriter work process. Complete information encourages healthier underwriting decisions which in turn will improve the quality of the company's portfolio. This will create a healthy and sustainable business so that insurance companies can carry out their obligations to policyholders properly," Supriono said.
Chairman of the Board of Management of the Indonesian Life Insurance Association (AAJI), Budi Tampubolon, who was also present virtually at this activity, also expressed his appreciation for the implementation of IUS 2023. According to Budi, the Underwriting Summit held by PERUJI is relevant to Indonesia's insurance roadmap, one of which is strengthening and developing human resources.
Along with the addition of policy ownership, especially individuals who have passed 28 million, which means 10% of the population in Indonesia already has life insurance but there are still 90% of the population who have not been covered by insurance. As soon as necessary insurance inclusion is needed.
"We as insurance personnel need to grow, be more quality and be more loved by the community. Furthermore, for Credit Life Insurance, there needs to be special attention, one of which is in the underwriting sector. PERUJI can make best practice underwriting good for life coverage, critical illness, health coverage and credit life coverage," said Budi.
Apart from being attended by OJK and AAJI, this seminar also presented participants from underwriting experts in Indonesia and multinational companies. Such as Melissa Chew from RGA, Nico Demus from Indonesia Re (Persero),ctional Chawla & Kenneth Pah from UnderwritingMe, Jeffrey Seow from Gallagher Re, Nicole Tan from Willis Towers Watson, Jonathan Sternberg & dr Mona Jamtani from MEDIX, Dr. Benny Hadiwibowo from INARE, and W. Agung Wibowo, SH, MH from Consultant, Insurance Legal Practitioner.
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