Insurance Claims Management: Key to Maintaining Public Trust

REPUBLIKA.CO.ID, JAKARTA – Proper claims management is the key to maintaining public trust in the insurance industry. Without a claims system that is transparent and accountable, the sustainability of the industry is difficult to maintain.

Emira E. Oepangat, Executive Director of the Indonesian Life Insurance Association (AAJI), said that insurance companies are basically there to pay valid claims in accordance with policy provisions.

‘The fundamental philosophy of the industry is for a company to pay valid claims to the right person, in the right amount, in accordance with policy provisions,’ Emira said at the discussion forum titled ‘New Standards in Insurance Governance and Customer Protection in Indonesia’, on Thursday (5 March 2026).

According to Emira, controls in the claims process are very important because various studies show potential fraud can contribute around five percent to the claims ratio. That condition can ultimately affect premium stability and the sustainability of the insurance industry.

Emira explained that the Indonesian insurance industry has diverse characteristics. Each company is at a different level of maturity, both in terms of risk management, digital transformation, and governance strengthening.

Nevertheless, she noted that all industry players continue to move towards governance standards that are increasingly strong.