Property Insurance: Essential Protection, Why Isn't It Optimal in Indonesia?

JAKARTA, KOMPAS.com - Property insurance is one of the essential protections that Indonesian society should have. Unfortunately, property insurance has not been optimally adopted by the public due to constraints in public understanding. Insurance observer Irvan Rahardjo stated that not many people insure their property, influenced by awareness and knowledge levels. In addition, the low number of people with property insurance stems from the high cost of houses. On the other hand, Irvan mentioned that the existing constraints could be overcome with interest subsidies or premium subsidies, similar to BPJS contributions for the poor covered by the government or known as PBI (Premium Assistance Recipients), numbering around 123 million people. “The government must intensify education and literacy efforts. Especially now with mandatory insurance as regulated in the P2SK Law,” Irvan explained. This step aims to adjust tariffs to current risks, including setting special tariffs for electric vehicles that are higher, to ensure the sustainability of the insurance industry. The adjustment also covers property insurance premiums, which are expected to enhance service quality and stability in the general insurance industry. PT Asuransi Jasa Indonesia (Jasindo) views this policy as capable of strengthening risk governance in the general insurance industry. “If this adjustment is implemented, we hope it will reflect an actual risk profile, encourage more prudent underwriting practices, and maintain the health and sustainability of the general insurance industry,” said Brellian. Brellian added that the main factor driving the need for tariff adjustment is the increased risk profile leading to greater potential claims. “Tariff adjustments need to be viewed comprehensively. With this adjustment, it is hoped that insurance companies can be more sustainable in providing protection,” he added.