National instability affects insurance companies' risk rates<\/p>\n
Today, liquidity and sale problems are more difficult than
\nthey were before the crisis. Both are impacts of the effects of
\nan economic crisis on Indonesia's insurance industry. Riots and
\nan unstable political climate have worsened the situation. The
\nInsurance Council of Indonesia's chairman, Munir Syamsudin, has
\nsaid: \"To be honest, last year's riots put the insurance industry
\nin a difficult situation, especially with regard to insurance
\ncovering loss.\"<\/p>\n
Another obvious impact is the number of people surrendering
\ntheir life insurance to collect the premium. As for insurance
\ncovering loss, the instability in this sector is aggravating the
\nrisk rate of companies. \"To insure means to take over other
\npeople's risks. If an accident occurs, the insurance company will
\nbe responsible for the financial aspects,\" explained Munir.<\/p>\n
To propel the insurance business forward, he said, three
\nobstacles need to be overcome: 1) people's low insurance
\nawareness; 2) lack of capital, which affects a company's
\nprogress; 3) the speculative attitude of insurance underwriters.
\nIf these obstacles can be overcome, he said, then improvement in
\nservices quality and accurate promotion campaigns need to be
\ncarried out.<\/p>\n
There are many joint venture or multinational insurance
\ncompanies in Indonesia, he said, with three-quarters of the
\nmarket already covered. This leaves only a quarter. However, he
\nsaid, every insurance company in Indonesia should prepare to
\nanticipate people's increased insurance needs for the future.<\/p>\n
Furthermore, Munir said, government regulations on insurance
\nare quite good. But it would be better if the government was more
\nactive and consistent in applying the regulations, he said.
\n\"Currently, the application is not systematic.\" Why? He theorized
\nthat it was because of a lack personnel to supervise insurance
\ncompanies.<\/p>\n
Should there be better reform and synergy applied by both
\nsides -- the government and insurance companies -- we could all
\nbe sure that the insurance industry would grow faster in the
\nfuture, he said.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/national-instability-affects-insurance-companies-risk-rates-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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