Medan (ANTARA) - The Indonesia Deposit Insurance Corporation (LPS) is\npreparing to activate the Insurance Policy Guarantee Programme (PPP) as\nan effort to provide protection for insurance policyholders.<\/p>\n
LPS Commissioner for the Insurance Policy Guarantee Programme,\nFerdinan D. Purba, stated in Medan on Monday that the guarantee for\ninsurance policies not only provides certainty for policyholders but\nalso enhances trust in the insurance industry, while supporting the\ngrowth of insurance penetration in society.<\/p>\n
\u201cThe insurance industry has great potential for continued growth in\nIndonesia. As of 2020, the insurance asset ratio in Indonesia to gross\ndomestic product is still at 4.6 percent, so the insurance policy\nguarantee is expected to increase public confidence in this industry,\u201d\nhe said.<\/p>\n
Furthermore, Ferdinan cited North America and Europe as regions with\nthe highest number of insurance company failures in the world, yet they\nstill dominate the global insurance market thanks to the support of\npolicy guarantee institutions.<\/p>\n
\u201cDo not be misled by cases of insurance company failures, because the\nmain thing is how to protect the interests of policyholders,\u201d he\nsaid.<\/p>\n
However, determining the PPP scheme presents its own challenges, as\neach country has a unique industry profile and different determining\nfactors.<\/p>\n
\u201cBased on the 2023 International Forum of Insurance Guarantee Scheme\n(IFIGS) survey, the mandate for insurance policy guarantees in each\ncountry varies, including: paybox, paybox plus, loss minimizer, and risk\nminimizer,\u201d he said.<\/p>\n
In line with the planned amendment to Law No.\u00a04 of 2023 on the\nDevelopment and Strengthening of the Financial Sector (UU P2SK), the\ndesign of the PPP to be organised by LPS is proposed to receive the most\ncomprehensive mandate, namely risk minimizer.<\/p>\n
The proposed risk minimizer mandate in the UU P2SK is expected to\noperate effectively and truly provide maximum protection for\npolicyholders.<\/p>\n
In addition to regulating the implementation of LPS\u2019s mandate in\norganising the PPP, there are other matters that LPS is also preparing.\nFor example, regarding participation, the scope of guaranteed policies,\nthe nominal guarantee limit, and the contribution scheme from insurance\ncompanies.<\/p>\n
\u201cHowever, one thing is certain: the implementation of the PPP is a\nmomentum to drive the growth of the insurance industry in Indonesia. For\nthat reason, we will prepare the activation of the programme as best as\npossible to increase trust, protect policyholders, and ensure the\nstability of the industry going forward,\u201d he said.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/lps-prepares-activation-of-insurance-policy-guarantee-programme-1777899211", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }