Future bringht for life insurance: Executives

Future bringht for life insurance: Executives

JAKARTA (JP): Executives say the Indonesian life insurance industry has a bright future, given growing public awareness of the importance of risk insurance.

"Insurers should grab the momentum amid the growing awareness of the public of insurance by introducing new qualified life insurance products and by upgrading the old ones," James T. Riady, the vice chairman of the widely-diversified business conglomerate, Lippo Group, told reporters yesterday.

He said the public needs, not only more education about the insurance business, but also the provision of reliable insurance products which will be able to cover various risks. James was speaking after briefing reporters on the launching of PT Lippo Life's Warisan (heritage) life insurance package.

James was optimistic that the number of Indonesian insurance policy holders would increase steadily in the years ahead.

"I think the ratio of life insurance policy holders against the country's population will increase to 20 percent within the next five years, from around eight percent at present," he added.

The president of PT Sun Alliance Insurance Indonesia, Eddy Darante, told reporters during a gathering to break the fast on Wednesday evening that the ratio might even reach 30 percent, considering that Indonesia is now home to around 30 million waged workers.

He said that Indonesia's ratio of policy holders to population is still the lowest in the Association of Southeast Asian Nations. In Malaysia, Singapore and Thailand the ratio exceeds 20 percent. (fhp)