As many as nine in 10 small and medium-sized enterprises in Indonesia have not thought about insurance, even though data from the Indonesian Entrepreneurs Association show that SMEs do not yet have a way to protect their business.
Corporate and Commercial Director of Zurich Insurance Indonesia, Mr Wirahadi Suryana, said: "The risk of disasters faced by business actors is very high, especially for small and medium enterprises which often face higher challenges and risks than big companies, especially on the capital side and dependence on owners."
Nevertheless, property insurance is not well known and its understanding in the community, especially businesses, is still considered low, reported Pikiran Rakyat citing Mr Wirahadi.
Furthermore, data compiled by the Association of General Insurance Indonesia (AAUI) show that the growth of property insurance premiums in the first quarter of 2017 had slowed, compared to the same period in the previous year.
However, Mr Wirahadi sees this challenge as an opportunity in the Indonesian insurance market. He said that the government is supporting the growth of the sector.
To expand the market, he said, Zurich had began to change its focus to the retail segment gradually since last year. The change of focus was made because the retail segment is considered to have enormous potential.
"We are confident that with the right combination of education and products, an understanding of the importance of property insurance will become widespread," he said.