Poor service hampers insurance businesses<\/p>\n
JAKARTA (JP): Indonesia's insurance industry needs to improve
\non the services their companies offer, the Director of Insurance
\nat the Ministry of Finance, Sophar L. Toruan, said here
\nyesterday.<\/p>\n
Speaking at a press conference here yesterday, Toruan noted
\nthat the government will take a group of 22 top executives from
\nlocal insurance companies to Australia from Nov. 12 to Nov. 19 to
\nobserve and study local practices down under.<\/p>\n
\"We have to admit that Australia's insurance services are
\nseveral steps ahead of Indonesia's,\" Toruan said.<\/p>\n
During their week-long visit, the delegates will visit 11
\ninsurance companies in Sydney and Melbourne and will meet with
\nAustralian State Treasurer Ralph Willis and executives of the
\nAustralian Insurance Commissioners and the Life Insurance
\nFederation of Australia.<\/p>\n
In addition to insurance services, the delegation, to be led
\nby Director General for Financial Institutions Bambang Subijanto,
\nwill also brush up on the usage of computer technologies relevant
\nto the insurance business, investment management and
\nadministration of pension funds.<\/p>\n
\"We are still infant in pension funds, and thus, our services
\nare still below par. We hope we will be able to adopt some
\ntechniques (from Australia) to improve them,\" Toruan said.<\/p>\n
He also noted that a number of Australian insurance companies
\nwill invest their money in Indonesia by establishing joint-
\nventure firms with local partners.<\/p>\n
They are, among others, the National Mutual Life Association
\nof Australia Ltd. which will cooperate with National Tempo Life,
\nMLC Life Ltd. with Simas Life, the Colonial Mutual Life Insurance
\nSociety Ltd. with an insurance firm affiliated to the Astra
\nInternational.<\/p>\n
He said insurance companies from Australia are interested in
\nentering Indonesia as only eight percent of the country's 180
\nmillion people are insured.<\/p>\n
To improve local insurance businesses, Toruan said, insurance
\ncompanies are advised to diversify the investments of their
\nfunds.<\/p>\n
\"Most of them invest their money in time deposits. They should
\ndiversify their investments, into areas like land, real estate
\nand capital markets,\" Toruan suggested. (rid)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/poor-service-hampers-insurance-businesses-1447893297",
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