Govt to improve climate for insurance business<\/p>\n
JAKARTA (JP): The government is committed to improving the
\nclimate for the insurance business in the country in face of
\nliberalization under the ASEAN Free Trade Area (AFTA) forum.<\/p>\n
Director General for Financial Institutes of the Ministry of
\nFinance Bambang Subiyanto told reporters after opening the 21st
\nassembly of the ASEAN Insurance Council (AIC) at Sahid Jaya hotel
\nyesterday that the government, in cooperation with the Indonesian
\nAssociation of the Insurance Companies (DAI), is now formulating
\nvarious steps to develop the insurance industry.<\/p>\n
He said the government will also take strict measures against
\nillegal practices in the industry,\" he said.<\/p>\n
He explained that a good climate is important for promoting
\nthe development of the insurance industry, considering that the
\nratio of Indonesia's policy holders against the population is
\nstill very low at only seven percent.<\/p>\n
The ratio was only three percent five years ago, he said.<\/p>\n
Bambang delivered a key speech yesterday at the AIC assembly,
\nwhich was attended by around 40 executives of insurance
\nassociations from five of the six members of the Association of
\nSoutheast Asian Nations (ASEAN) -- Malaysia, Singapore, the
\nPhilippines, Thailand and Indonesia. Brunei's representatives
\nwere absent at the assembly.<\/p>\n
The meeting was intended to exchange information and
\nexperience related to the insurance business and to seek a
\nstandardization in insurance practices among ASEAN countries to
\nsupport the implementation of the AFTA scheme.<\/p>\n
AFTA, which has been implemented since early this year, aims
\nat gradually liberalizing trade among ASEAN member countries
\nwithin 10 years.<\/p>\n
Promotion<\/p>\n
Sophar Lumban Toruan, the finance ministry's director for the
\ninsurance industry, meanwhile cautioned that the progress of
\nIndonesia's insurance business is still left far behind other
\ncountries in the region.<\/p>\n
\"Companies involved in the insurance industry, therefore,
\nshould be responsible for educating the public on advantages of
\nthe business by providing consulting and guidance on insurance,\"
\nhe said, adding that most of Indonesian people are not accustomed
\nto planning their future life.<\/p>\n
He said that the ministry is now designing a new life
\ninsurance facility which is very modest in operation, thereby
\nencouraging low income to use insurance services.<\/p>\n
AIC's chairman, Armando C. Trinidad, said that many people
\nseem to consider insurance a non-profit business. He therefore
\nsuggested that the industry strengthen its information campaign.<\/p>\n
He pointed out that the ratio of policy holders against
\npopulation in the Philippines is around 40 percent.<\/p>\n
An informed source said the policy holder ratio is 35 percent
\nin Singapore, 20 percent in Malaysia and 30 percent in Thailand.
\n(fhp)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/govt-to-improve-climate-for-insurance-business-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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