{
    "success": true,
    "data": {
        "id": 1601644,
        "msgid": "high-disaster-risk-home-and-vehicle-insurance-remains-rarely-owned-1773129310",
        "date": "2026-03-10 13:45:51",
        "title": "High Disaster Risk: Home and Vehicle Insurance Remains Rarely Owned",
        "author": "Sakina Rakhma Diah Setiawan",
        "source": "KOMPAS",
        "tags": "",
        "topic": "Finance",
        "summary": "Indonesia faces exceptionally high natural disaster risk owing to its location on the Pacific Ring of Fire, yet fewer than 0.1 per cent of the country's approximately 64 million homes carry disaster insurance protection. This coverage gap creates significant disparities between actual economic losses from disasters and insured values, as exemplified by the 2004 Aceh earthquake and tsunami which caused Rp41.4 trillion in damage but only Rp650 billion was covered by insurance.",
        "content": "<p>Indonesia is recognised as one of the countries with a high level of\nnatural disaster risk. Indonesia\u2019s geographical position in the Pacific\nRing of Fire zone means that various types of disasters, ranging from\nearthquakes and floods to landslides, have the potential to occur across\nmultiple regions.<\/p>\n<p>This situation causes significant economic losses, particularly to\nthe physical assets of the population, such as residential houses and\nmotor vehicles.<\/p>\n<p>Industry data demonstrates that protection for housing assets against\ndisaster risks remains extremely limited.<\/p>\n<p>Ruben Damanik, Strategic Planning &amp; Risk Management Group Head at\nPT Reasuransi MAIPARK Indonesia, noted that the number of homes with\ndisaster insurance protection remains very small compared to the total\nnumber of homes in Indonesia.<\/p>\n<p>He stated that fewer than 0.1 per cent of residential homes in\nIndonesia have disaster insurance protection. Out of approximately 64\nmillion homes in Indonesia, only around 36,000 homes are insured against\ndisaster risk.<\/p>\n<p>This low level of protection creates a large gap between the economic\nvalue of losses caused by disasters and the value of losses covered by\ninsurance.<\/p>\n<p>According to Ruben, this situation does not only occur in property\ndamage but also affects the economic recovery of communities following\ndisasters.<\/p>\n<p>For example, the economic loss from the 2004 Aceh earthquake and\ntsunami reached approximately Rp41.4 trillion, whilst the value of\ninsured losses was only around Rp650 billion.<\/p>\n<p>A similar phenomenon has also been observed in various disasters that\nhave occurred in recent years.<\/p>\n<p>When the 2022 Cianjur earthquake caused hundreds of thousands of\nhomes to be damaged, only a small portion of homes had insurance\nprotection.<\/p>\n<p>Natural disasters occurring in various regions in recent years have\ndemonstrated that resulting losses can reach hundreds of billions to\ntrillions of rupiah.<\/p>",
        "url": "https:\/\/jawawa.id\/newsitem\/high-disaster-risk-home-and-vehicle-insurance-remains-rarely-owned-1773129310",
        "image": ""
    },
    "sponsor": "Okusi Associates",
    "sponsor_url": "https:\/\/okusiassociates.com"
}