Insurance pool for tree crop and forestry risks<\/p>\n
JAKARTA (JP): PT Aon Lippo Indonesia and 20 local insurance
\ncompanies launched an insurance pool on Wednesday to underwrite
\nforestry and tree crop risks.<\/p>\n
Junaedy Ganie, the president of Aon Lippo, a subsidiary of the
\nU.S-based insurance broker Aon Corporation, said the insurance
\npool offered a special package to protect forestry and plantation
\ninvestors from losses due to catastrophe, such as fire,
\nlightning, earthquake, flood and pests. It will also extend
\ncoverage to strikes, riots and civil commotion.<\/p>\n
\"This pioneer project will be a model for an insurance scheme
\ninvolving key insurers, reinsurers, risk managers and national
\nforestry and plantation customers under a partnership system,\" he
\nsaid, adding the project was the first of its kind in the world.<\/p>\n
He said that insurance coverage was limited only to forests,
\noil palm and rubber plantations, but in the future would include
\ncocoa and guava plantations.<\/p>\n
He said the pool was established in cooperation with London-
\nbased Agricultural Risk Management Ltd (ARM), which acted as a
\ntechnical supporter in its operation, and also comprised five
\nstate-owned insurance brokers.<\/p>\n
Members of the pool are Asuransi Central Asia, Asuransi Wahana
\nTata, Asuransi Sinarmas, Lippo General Insurance, Asuransi
\nBintang, Aspac General Insurance and Asuransi Jasa Indonesia.<\/p>\n
Junaedy said the pool would also cooperate with European
\nreinsurers, such as Wellington 2020 of Lloyds of London, London-
\nbased QBE and Zurich Re, ERC Francona in Munich, Partner Re in
\nSwitzerland and Chiyoda.<\/p>\n
Junaedy explained that the pool could accept any qualifying
\nrisk up to Rp 80 billion (US$10.67 million) of which 15 percent
\nwould be retained by local insurers with the rest by overseas
\nmarkets.<\/p>\n
He added that the premium was based on value agreed within a
\nparticular scale with a base rate of 0.853 percent, and would
\nimpose a deductible of 20 hectares for forests and 5 hectares for
\ntree crops.<\/p>\n
\"To avoid claims caused by arson, the risk surveys and
\nassessments will be conducted by local loss adjusters approved by
\nLloyd's of London securities company,\" Junaedy added.<\/p>\n
Junaedy said the pool is open to more local or joint venture
\ninsurers and insurance brokers in a bid to gradually reduce
\nforeign participation. (01)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/insurance-pool-for-tree-crop-and-forestry-risks-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}