Observers Express What Insurance Companies Should Do If They Want To Stay Amid Economic Uncertainty 2023

insurance observer Dedy Kristianto assesses that insurance companies must increase the function of good risk management in order to survive in the midst of economic uncertainty in 2023.

"Increasing the risk management function is good for all insurance companies supervised by the OJK so that they can avoid the same problems that occurred before," said Dedy, quoted from Antara, Tuesday, January 10.

Dedy said there are two basic problems in the prospects for life insurance in 2023. First, external factors, namely economic uncertainty to the shadow of recession. However, seeing Indonesia's strong economic fundamentals, he believes life insurance can last this year.

"This is evidenced in the third quarter alone, we are still experiencing impressive growth at 5.72 percent and hopefully this can continue in 2023," he said.

Meanwhile, the second fundamental problem comes from internal factors which are the dominant factors, namely the efforts of life insurance companies to be able to restore public confidence in the life insurance industry, which has recently been full of cases that have drawn criticism from the public.

"How to restore public trust after a scandal or insurance problem such as Bumiputera, Jiwasraya, Wanaartha, and others that have collapsed the level of public trust in this industry," he said.

To overcome these basic problems, the CEO of Investment Consultant Deswa Invisco Multitama advised insurance companies to choose and determine insurance directors who not only have capacity but also integrity, so that cases of several default insurances can be avoided.

In addition, insurance companies, he said, must also be right in carrying out recruitment, selection, and training for marketers, so that they act professionally and not only premium-oriented will leave a bomb of time in the future.

OJK as a regulator, he continued, must also play a role and carry out its function better than before in terms of supervision inherent in the insurance industry, including increasing the financial literacy of the Indonesian people,

"Based on 2021 data, it is still around 3.18 percent. The 2022 data is likely not much improvement," he concluded.