The insurance industry has yet to fully utilise the opportunities that FinTech offers, in particular the huge possibilities in insurance technology, according to Mr Dumoli F Pardede, Deputy Commissioner for Non Bank Institution Supervisor, Indonesia Financial Services Authority (OJK).
Speaking at the 3rd International Insurance Seminar held yesterday in Jakarta, Mr Pardede said that InsurTech solutions are the best way to close the protection gap in Indonesia, given the highly connected population.
The OJK has been playing a part to promote FinTech. The agency implemented regulations that support growth of P2P lending platforms and new financing alternatives for under-financed communities late last year. The regulations are designed to protect consumer and national interests, while providing opportunities for local Fintech companies to grow and expand, and contribute to the national economy, he said.
Updating the regulations
However, the lack of clarity about the regulations is a common complaint amongst insurers who are hesitant to step into the digital distribution space.
To resolve this, Mr Pardede mentioned that the OJK was looking at updating the regulations by the end of the year, in order to address these concerns, but did not give any details.
About 50% of the population of Indonesia have regular access to high-speed Internet, with about 132.7 million people going online on a daily basis. Indonesia is also one of the most mobile countries in the world, with an estimated 326 million mobile subscriptions currently in existence, representing 126% of the country’s population.
Indonesia is home to an estimated 120 FinTech companies, with more expected to sprout in the near future, as the OJK continues to provide support to this emerging sector.
The 3rd International Insurance Seminar was organised by the Association of General Insurance of Indonesia (AAUI).