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