NUSA DUA, Bali (BPN) – To encourage its members to apply digital technology, the Indonesian Life Insurance Association (AAJI) held a Seminar on Digital & Risk Management in Insurance (DRiM). The DRiM Seminar is one of AAJI’s programs in increasing penetration and financial inclusion for the people of Indonesia. The event was carried out on 25-27 September 2019 at The Westin Hotel, Nusa Dua Bali.
DRiM 2019 was opened by Ahmad Nasrullah, the Head of the Non-Bank Financial Industry Supervision Department of the Financial Services Authority (IKNB 2A OJK), accompanied by the Chairman of the AAJI Budi Tampubolon and the Chair of the DRiM 2019 Committee Wiroyo Karsono.
According to the Chairman of the AAJI Board of Management Budi Tampubolon, through the DRiM 2019, the insurance industry is expected to prepare the right strategy to increase life insurance penetration in Indonesia.
“The huge market potential of the insurance industry in Indonesia must be handled immediately. We believe that we can accelerate market penetration, through the latest technological conveniences, especially for millennials,” Budi added.
The high penetration of internet usage in Indonesia is an opportunity for the life insurance industry. Digital transformation is the key for both.
Based on a survey conducted by AAJI in collaboration with Nielsen, it appears that the millennials segment (aged 25-38 years) already understand the importance of insurance and understand that they can buy it online.
And related to the insurance awareness of the younger segment or known as Gen Z (ages 17-24 years) have begun to realize the importance of insurance protection.
The increasing of the internet and social media users in Indonesia is expected to drive the penetration of the insurance market in Indonesia. With a vast territory and thousands of islands, digital communication is the key to getting closer to the Millennial and Gen Z segments.
The seminar also discussed the trend of millennial needs for life insurance, how they deal and understanding about insurance.
Chairman of DRiM 2019 Committee Wiroyo Karsono said, technology has narrows distance, thus, the insurance industry has to meet customer’s needs and provide the best service, faster and more appropriate.
“AAJI sees, the millennial generation already has the initiative and interest to protect their financial future, this, of course, must also be responded by the insurance industry, how to determine the company’s investment in digital technology, to gain market from millennials,” Wiroyo explained.
Themed Capturing Potentials Among Digital Millennials, and followed by 500 participants, the seminar gave a perspective, regarding the importance of transformation in all business lines to take advantage of digitalization, so that they can determine product designs that fit the needs of the market.
Meanwhile, the Financial Services Authority (OJK) believes that digitalization in the financial industry both banking and non-banking, especially in the insurance industry will increase financial access and literacy in the community.
According to Ahmad Nasrullah, the development and use of information technology in the financial services industry including insurance will provide added value, in daily business activities.
To that end, the insurance industry must also adjust and optimize its business activities, by utilizing current technological developments, where, our society is getting dependent on the use of digitalization and information technology.
“The insurance industry must be able to take advantage of the current momentum of digital technology development in the financial sector. It is important to collaborate to encourage market penetration, so services, product innovation can be more advanced and by the needs of the community,” Ahmad said.
It is hoped that through the DRiM 2019 seminar, the AAJI members can be more confident in applying digital technology in corporate’s strategies so that life insurance penetration in Indonesia will be faster and more appropriate following its target market.