Importance of insurance underlined<\/p>\n
Recent events have brought home the prudence of insurance as a
\nprotection against unforeseen events which may be lurking in the
\nfuture.<\/p>\n
The May riots and ensuing fires which laid waste to much of
\nthe capital of Jakarta have caused huge material losses. A far-
\nthinking few may be covered for their losses and may be quickly
\nable to restore some of the normalcy to their lives.<\/p>\n
But those lacking insurance coverage will, unfortunately, have
\nto go it alone in picking up the pieces and putting their
\nbusinesses back on the road to recovery.<\/p>\n
Although it is a relative newcomer to Indonesia, insurance has
\na long history throughout the world, dating back in a very simple
\nform to ancient Babylon.<\/p>\n
It came into its own in the modern era with the establishment
\nof fire insurance by Nicholas Barbon in London in 1666, following
\nthe \"Great Fire\" which razed the English capital. Within a few
\nyears, insurance had grown into a large, diversified business
\nwith comprehensive services available.<\/p>\n
Insurance companies play a vital role in the economies of many
\nnations. They contribute to a country's economic stability by
\ncompensating individuals and businesses for financial losses that
\ncould otherwise force them into bankruptcy.<\/p>\n
By insuring loans and helping new businesses open their doors,
\ninsurance firms help increase the production of goods and
\nservices. They also employ many people and pay huge amounts in
\ntaxes.<\/p>\n
In Indonesia, awareness of the benefits of insurance remains
\nrelatively low among the general population. Insurance firms have
\ntheir work cut out for them in getting the word out about how
\ninsurance is a long-term investment and can be a vital lifeline
\nwhen trouble strikes.<\/p>\n
The focus of the message is that insurance holders have a
\nsense of security. They can own property, vehicles, operate
\nbusinesses and engage in many other activities safe in the
\nknowledge that insurance is covering them for most types of loss
\nand risk.<\/p>\n
People can reduce the risks of starting a new business or
\nacquiring property by buying insurance.<\/p>\n
It also means facing realities -- when the undesired does
\noccur, insurance claims may prove to be the difference between
\nrecovery and going belly-up.<\/p>\n
Getting this across to Indonesians is essential because the
\ncountry's population of more than 202 million presents an ideal
\ninsurance market waiting to be tapped, despite the economic
\ndownturn of the past year.<\/p>\n
Indonesia's insurance business dates back to the Dutch
\ncolonial era with the founding of Bumiputra, offering life
\ninsurance, in 1912.<\/p>\n
Following independence, insurance consciousness continued to
\ngrow, although gains were gradual and dependent on the economic
\nsituation.<\/p>\n
The public's knowledge of insurance, however, remained
\nlimited, with most assuming the only type available was life
\ninsurance policies.<\/p>\n
Indonesia's insurance sector began to take off during the
\ncurrent decade, with increased consumer spending power,
\nheightened recognition of advantages and the growing presence of
\njoint-venture firms in the nation.<\/p>\n
These launched intensive campaigns aimed at improving the
\npublic's knowledge of the various types of insurance available.
\nThis effort was important in assuring the development of the
\nsector and expanding public knowledge of how insurance could be a
\nfriend in a time of need.<\/p>\n
Great strides were made, particularly in the mid-1980s through
\nto the middle of this decade, in reaching out to the public and
\nincreasing their participation.<\/p>\n
In 1976, there were 1.3 million life insurance policies in the
\ncountry but in 1985, the total had increased to 2.7 million.
\nHowever, this represented a mere 1.68 percent of the total
\npopulation.<\/p>\n
Today, the market has a variety of policies available to serve
\ndiverse needs of customers from all walks of life and incomes.<\/p>\n
These include scholarship insurance, multiform insurance, haj
\ninsurance, old age insurance, pension plans, health insurance,
\ninsurance for members of the Armed Forces and insurance for civil
\nservants.<\/p>\n
Opportunities<\/p>\n
The bountiful opportunities available in the Indonesian market
\nhave not been lost on foreign insurance firms.<\/p>\n
Many have set up operations in the country in an effort to
\neducate the Indonesian public about the value of insurance in
\nassuring a better future.<\/p>\n
These firms have come from developed insurance markets in such
\ncountries as the United States, Britain and Australia.<\/p>\n
A recent new entry is PT Asuransi AXA Indonesia, which was
\nincorporated in 1996. It is part of AXA, which has more than 180
\nyears' experience and is one of the largest insurance groups in
\nthe world.<\/p>\n
With assets in excess of US$500 billion and annual revenues of
\n$60 billion, the group currently has operations in more than 50
\ncountries and employs more than 130,000 people, including 12,000
\nin the Asian region.<\/p>\n
PT Asuransi AXA Indonesia offers insurance to meet a broad
\nrange of commercial and personal requirements, including
\nproperty, engineering, marine, personal accident or health,
\nliability, motor, home and content and travel accident.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/importance-of-insurance-underlined-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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