Reflecting On Jiwasraya, Asabri And Bumiputera Cases, Insurance Industry Is Invited To Transform

Illustration. (Photo: Unsplash)

JAKARTA - President Director of PT Reasuransi Indonesia Utama/Indonesia Re (Persero) Benny Waworuntu invited the insurance industry to carry out a transformation together.

“Our industry is not doing well right now. We both know that with cases like Jiwasraya, Asabri, Bumiputera, (and others) we all have to change this industry. We at Indonesia Re have a passion to be enablers, gamechangers, we want to invite this industry to transform," he said, quoted from Antara, Tuesday, March 14.

This invitation was conveyed in a business competition socialization, counseling, and training activity program to protect the public and industry stakeholders in accordance with the Regulation of the Commission for the Supervision of Business Competition (KPPU) Number 1 of 2022 concerning the Competition Compliance Program taking place at The Westin Hotel, South Jakarta.

Currently, there are 150 insurance companies, most of which, or 82 companies, are members of general insurance associations, seven reinsurance companies, 53 members of life insurance associations, and 15 spin-off insurance companies that have fully operated sharia for reinsurance, life insurance, and general insurance.

According to him, the insurance industry is highly regulated even though the maturity level is not yet in that position.

"We may still have to fight together, our literacy is still lagging behind other industries, and our penetration is still around two percent or even below two percent which is a challenge in itself for us. At the same time, we want to increase our penetration, our tendencies, our inclusivity, but we have a fairly tight market because there are quite a lot of players, there are 150 companies," said Benny.

One component of the insurance industry that is considered quite unique and specific is Asset Liability Management. It is considered that these components must be considered when discussing various issues related to the insurance industry, such as competence or rates.

On that occasion, he also acknowledged the obstacles he faced when he wanted to transform the insurance industry.

"We also have a problem of how can we observe so that we are not on the side of a monopoly or maybe an oligopoly, so we have to be able to have a stance, a way that still governs in accordance with the existing prevailing regulations, especially those at the KPPU, we are united so that we can provide services the best for Indonesia," he said.