Insurance -- providing safety in troubled times
Insurance -- providing safety in troubled times
The insurance industry in Indonesia is looking to the developed world, where insurance is universal and considered a necessary part of life, as a model for its future growth.
Massive riots which hit Jakarta and other major cities across the country in May 1998, and the ensuing economic crisis have been both a blessing and a curse to Indonesia's insurance companies.
The staggering amount of damage and loss suffered during the riots translated into a breathtaking number of claims being filed with insurance companies. The insurance industry clearly suffered some damage during this time.
The ongoing economic crisis has also hurt insurance companies. Most people are too concerned with day-to-day survival to worry about their futures, leading to an increase in the number of people canceling their policies.
While the industry has suffered, the May riots also served to raise people's awareness on the necessity of insurance. The fact has been proven constantly and tragically over the last year that one's health, life and property can be destroyed without warning.
While it is unpleasant to think about what would happen if you were killed or your business burned down, it is even worse to consider you and your loved ones fates if these tragedies struck and you were not insured. Not only would you be struck by the initial tragedy, if you did not have insurance, you could then be hit with financial ruin.
While awareness of the need for insurance has risen, the insurance industry recognizes that the country still has a long way to go before it is on an equal level with developed countries.
That is why many insurance companies are focusing on marketing. They realize that the industry's future growth depends not on simply selling policies, but on selling the idea of insurance.
Hand in hand with selling the need for insurance is selling the industry itself. In Indonesia, as in the rest of the world, insurance companies are perceived as being difficult to deal with and rather reluctant to pay claims.
The perception that insurance companies try to bury policyholders beneath a mountain of paperwork in order to kill their desire to file a claim is a notion which the industry is attempting to eradicate.
To this end, insurance companies are streamlining the process for filing a claim and improving the quality and skills of their human resources.
Insurance today is a necessity rather than a luxury. While it is impossible to insulate yourself from the harsh realities of the world, you can insure that no matter what happens, you and your loved ones will be able to pick up the pieces and resume your lives. Insurance gives you the peace of mind of knowing that your life will go on. David Eyerly