JAKARTA (JP): Indonesia has seen a rise in natural and man-made disasters which means insurance firms are likely to profit from an increase in business this year as more people seek disaster cover.
The finance ministry's head of insurance bureau IsaRahmatarwata said the high number of disasters in the country had raised people's awareness of the importance of buying insurance.
"The intense occurrence of earthquakes and floods in the last two years, for example, has somehow made people think more about putting their savings not only in the banks, but also toward insurance," Isa told The Jakarta Post recently.
For the last four years, Indonesia has seen an increase in natural and man-made disasters, including train and airplane accidents and highway collision.
Isa said he believed disasters would remain a key driver for growth in the domestic insurance industry this year.
He said he did not want to estimate growth figures oninsurance premiums for 2008, but said the whole insuranceindustry in Indonesia grew about 25 percent last year in terms of premiums. (ndr/****)
Find Article by Date