Tugu Insurance hopes claims will not rise amid El Niño and conflict
Jakarta (ANTARA) - The Technical Director of PT Asuransi Tugu Pratama Indonesia Tbk (Tugu Insurance), Fadlil Iswahyudi, stated that the company hopes there will be no increase in claims submissions due to the El Niño phenomenon and the US-Israel-Iran war.
Nevertheless, he said the company is still preparing several mitigation measures, given that the El Niño phenomenon brings hot weather to Indonesia, which has the potential to trigger fire cases.
“We hope there will be no (increase in claims), but there is concern that the (El Niño) phenomenon (will cause) bush fires, burning shrubs near factories, then affecting the factories—things like that are covered (the compensation is guaranteed by insurance),” said Fadlil Iswahyudi in Jakarta on Thursday.
Meanwhile, he explained that the war in the Middle East could increase claims risk related to marine cargo insurance due to the closure of the Strait of Hormuz, which causes disruptions to the journeys of several cargo ships.
Along with the increased claims risk, he said insurance and reinsurance premiums for marine cargo also have the potential to rise. However, he noted that no adjustments to those premiums have been observed at present.
“(War risk) is always excluded, except for marine cargo. (Insurance) for marine cargo has too many exceptions; war on land is not covered (guaranteed in other insurance products), but for marine cargo, there is (compensation due to) war,” said Fadlil.
Despite these natural disaster and geopolitical risks, the company remains optimistic about improving its performance this year compared to last year.
According to the consolidated financial report of Asuransi Tugu as of 31 December 2025, released on Tuesday (31/3), the company recorded a net profit after tax of Rp762.42 billion in 2025. Meanwhile, the company’s total assets reached Rp27.71 trillion, with a liquidity ratio of 237.53 percent.
Previously, the Ministry of Agriculture had urged farmers to utilise the Paddy Farming Business Insurance (AUTP) as a step to protect production amid the potential threat of El Niño, which is expected to last for the next few months.
“One of the steps (to anticipate El Niño) that the government continues to promote is the utilisation of the Paddy Farming Business Insurance (AUTP),” said Minister of Agriculture Andi Amran Sulaiman in a statement in Jakarta on Wednesday (1/4).
He conveyed that the programme is designed to protect farmers from various risks, ranging from drought and flooding to attacks by plant-disturbing organisms.