Rising Disaster Risks Require Intensified Property Insurance Literacy Efforts

Property insurance ownership in Indonesia remains limited despite rising disaster risks. Low literacy and awareness are seen as the main barriers. Insurance expert Irvan Rahardjo stated that many people still do not understand the importance of asset protection. “This lack of knowledge is often referred to as education and literacy issues. It is evident that public spending on cigarettes is quite high, with prices exceeding insurance premiums,” said Irvan in Jakarta on Wednesday (28/4/2026). Irvan noted that high property prices also influence public decisions. He urged the introduction of support schemes such as premium subsidies for vulnerable groups, similar to the Premium Assistance Recipients (PBI) in BPJS. “The government must intensify education and literacy efforts. Especially now with mandatory insurance as regulated in the P2SK Law,” said Irvan. On the other hand, the Financial Services Authority (OJK) is preparing a draft regulation on premium rates for property and motor vehicle insurance. This policy is seen as strengthening risk management in the industry. Jasindo Corporate Secretary Brellian Gema said that rate adjustments need to reflect the latest risk profiles. “If this adjustment is made, we hope it will reflect actual risk profiles, encourage more prudent underwriting practices, and maintain the health and sustainability of the general insurance industry,” said Brellian. Brellian explained that the increase in claim risks is one factor driving the rate adjustment. The company is also strengthening risk analysis and underwriting policies. He added that property insurance is still often seen as an additional burden. “Many property owners still view insurance as an extra cost, whereas this is a form of protection investment. With relatively affordable premiums, they can avoid the risk of asset loss due to disasters,” said Brellian. According to Brellian, property protection covers risks such as fire, flood, earthquake, and tornadoes. Increasingly unpredictable weather conditions make the need for protection even more relevant.