Insurance Implementation Still Low, National Insurance Council Agrees With Literacy Genjot

JAKARTA - Chairman of the Indonesian Insurance Council (DAI) Tatang Nurhidayat said that penetration of insurance in the country in terms of policy ownership is still relatively low in Gross Domestic Product (GDP).

According to him, public understanding and awareness to have insurance are also not evenly distributed as expected

"This certainly requires support from all parties to work together by increasing literacy and insurance education to even wider segments," said Tatang in his remarks at the peak of Insurance Day activities in Jakarta, Thursday, October 20.

Tatang added that the celebration of Insurance Day is a form of DAI's ongoing commitment for the people of Indonesia, as well as a momentum for the industry to be more aggressive in providing socialization about the importance of self-protection through insurance.

"Through the theme 'Input for the Country Literacy', insurance personnel want to describe a common goal of increasing insurance understanding, especially increasing financial education and literacy in encouraging the availability of access and financial services that touch all levels of society in Indonesia," he explained.

Tatang added, DAI carries out the functions of education, mediation, information and communication between members of the association, society and the government.

"In its implementation, the DAI carries out various activities that focus on education and socialization of insurance to all levels of society, both for internal and external groups of the insurance industry," continued Tatang.

Meanwhile, the Chairperson of the 2022 Insurance Day Committee, Retno Susanti, said that the level of education, awareness and income of the community is still the main challenge.

For this reason, he continued, the insurance industry has more attention to advance the growth and development of the country's insurance business.

"Therefore, in accordance with the theme, the 2022 Insurance Day activities are focused more on Insurance Literacy to the general public, so that our goal is to make the Indonesian people more familiar, understanding and awareness to have insurance guarantees can be realized as stated in the tagline "Recognition-Miliki," continued Retno.

Just so you know, based on data from the Financial Services Authority (OJK), insurance penetration of Indonesia's GDP has only reached 3.18 percent in 2021.

In detail, the penetration of life insurance in Indonesia has only reached 1.19 percent, general insurance 0.47 percent, social insurance 1.45 percent, and mandatory insurance 0.08 percent with insurance desities of IDR 1.82 million.

Based on the 2019 National Survey of Financial Literacy and Inclusion (SNLIK), the new financial literacy index is 38.03 percent with a new insurance literacy rate of 19.4 percent.

At a time when Indonesia's financial inclusion index reached 76.19 percent.