Indonesia’s understanding of insurance is still very minimal. Data from the Financial Services Authority (OJK) in 2017 states that the insurance literacy index in Indonesia has only reached 15.87 percent.
Of the 265 million Indonesians, only 1.7 percent have insurance. The insurance penetration rate is claimed to be no more than 3 percent.
the average Indonesian people who buy a policy also do not really understand the process of insurance claims. Documents that should be prepared are incomplete. As a result, many cases of claim disputes in Indonesia were won by insurance companies.
As an innovation, Bindcover, one of the technical (insurance technology) was launched to make it easier for people to manage complicated insurance claims. Bindcover is also here to provide an understanding of insurance claims for the public.
“Because of the lack of understanding of the policy, there are still many customers who cannot prepare the required documents. Customers also feel the claim process is complicated. This can affect the amount of claim reimbursement that is not as expected. Bindcover is here to simplify it,” Victor said Roy, founder of Bindcover, in Jakarta, Wednesday (3/27/2019).
The Bindcover platform can be used by customers, brokers, insurance companies and losa adjusters. Victor added, Bindcover targets Small and Medium Enterprises (SMEs) that have a general insurance policy.
The presence of Bindcover was supported by the Chairman of the Indonesian Insurance Mediation and Arbitration Agency (BMAI), Frans Lamury. He said, the existence of innovation in digital insurance claims services could help BMAI reduce the number of dispute insurance claims in Indonesia
OJK Targets Insurance Industry to Grow 15 Percent in 2019
Previously, the growth of the insurance industry experienced a slowdown from year to year. Usually, the life insurance industry and general insurance can grow to above 10 percent or double digits every year.
The Financial Services Authority (OJK) mentioned the insurance industry’s total premium growth, in 2018 it was only able to reach 9 percent. Whereas in previous years the growth rate was always double digits.
This was stated by the Head of the OJK IKNB 2A Supervisory Department, Ahmad Nasrullah in a discussion entitled “2019 IKNB Business Prospects, Opportunities and Risks in Challenging Years” at JW Marriott Hotel, Jakarta, Tuesday, March 12, 2019.
Nevertheless, he believes that this year the insurance industry will be able to rise again. “This year, the target is double digits, 12-15 percent,” he said.
Meanwhile, the weakening of insurance growth especially in 2018 was caused by the turbulent global economic conditions. This condition is very influential on the business world, including insurance.
He hopes, this can be the concern of all business people in order to make an improvement or innovation. Because this year insurance has a pretty good opportunity to increase its growth. “The insurance industry still has the potential to grow in the future,” he added.
For information, the Indonesian Life Insurance Association (AAJI) noted, the growth of Indonesia’s life insurance industry performance experienced a slowdown throughout 2018. The growth of the life insurance industry slowed 19.4 percent compared to the same period last year. Meanwhile, total premium income also slowed by 5 percent compared to the previous year.
The total premium income up to the fourth quarter of 2018 has slowed by 5 percent to Rp 185.88 trillion. The decrease in total premiums was influenced by the decline in premium income from the bank assurance distribution channel by 11.2 percent and contributed 42.9 percent of the total premium income of the life insurance industry.
Recorded new business premium income from health insurance products has contributed 4.8 percent of the total new business premium income in Quarter IV-2018. This shows that health insurance products are still in demand by the people of Indonesia.