NUSA DUA, Bali (BPN) – The Indonesian Insurance Board (DAI) in collaboration with all members of the insurance associations, once again holds the annual Insurance Day (Hari Asuransi), which is now entering its 14th year, on 18 October. The 2019 Insurance Day themed Let’s Get Insurance with the sub-theme One Million Policy for the Country, focuses on providing education on the importance of insurance for protection to as many people as possible.
Dadang Sukresna, Chairman of DAI, explained, the Insurance Day is a form of DAI’s ongoing commitment to the people of Indonesia.
“Through this year’s theme, we want to re-elaborate a common goal to improve insurance understanding, specifically in increasing financial literacy and inclusion, and encouraging the availability of access and financial services to all levels of society in Indonesia,” he said at a press conference in Nusa Dua on Thursday.
Based on data from the Financial Services Authority (OJK) in 2018, insurance penetration in Indonesia is still relatively low, which only 3.01 percent.
The level of education, awareness, and income in the community are some of the main causes of the low interest to get insurance. Besides, the condition of the Indonesian territory which is an archipelago also influences the acceleration of insurance penetration to the public. This is the challenge for the insurance industry that penetration activities are not only focused on big cities.
“Related to the challenges, the era of digital technology and the change across generations from baby boomers to millennials generation is an extraordinary opportunity for the insurance industry to reach a bigger market,” Fachri Adnan, Chair of the 2019 Insurance Day Committee explained.
To socialize insurance benefits, DAI has implemented insurance literacy programs to 24 cities since September 2019. Until now, this program has touched 17,277 participants consisting of high school and vocational students. This mass literacy effort even received recognition from the Indonesian Record Museum (MURI) and was recorded as Insurance Literacy to High School Students with the Most Participants in Indonesia.
Besides, DAI also cooperates with the Permodalan Nasional Madani (PNM) investment management in conducting insurance socialization to SMEs and underprivileged people.
The main event of the 2019 Insurance Day will be packaged in the form of the festival at Renon Field, Denpasar, on Sunday, 20 October. The series of events will begin with a fun walk which will be followed by more than 2,000 participants. There will be also a carnival, culinary delights, extreme sports attractions, and musical performances. The festival is planned to be opened by the Governor of Bali and OJK representatives.
While Riswinandi, OJK’s Executive Supervisor for the Non-Banking Finance Industry (IKNB), said he is confident that the insurance penetration and literacy will encourage the increasing financial access and literacy in the community.
The Central Statistics Agency (BPS) estimates that next year Indonesia will enter a period with a high composition of the productive population. This will have implications on insurance demand because actually, this layer of society will need a variety of financial products for protection, investment, and others.
“This opportunity is also supported by the increasingly popular hegemony of insurance technology (insurtech), through the evolution in all aspects of insurance operations from product sales, underwriting to purchasing policies that can be done with just a touch of a finger. This innovation will make it easier for companies to reach untapped markets and will certainly provide new experiences to prospective insured,” Riswinandi added.
“Through the ‘One Million Policies for the Country’, we hope that the distribution of insurance products can be more massive. Increased public understanding of the importance of insurance will ultimately be able to accelerate the growth of the national insurance industry,” Dadang Sukresna closed.