The Indonesia insurance regulator has called on all sectors of the industry to come up with new ideas to help jump-start the development of the sector.
Mr Riswinandi, executive head of Non-Bank Financial Institutions Supervision at OJK or the Financial Services Authority, made a bold keynote address at the 24th Indonesia Rendezvous in Bali yesterday in which he said, “The OJK is very open to all new ideas from stakeholders.”
With the emotional backdrop of major natural disasters this year in Lombok and Palu, Mr Riswinandi said that the insurance sector “still has a lot of work to do” in terms of selling enough protection to allow the nation to develop economically. Insurance penetration of the 257m-strong population today remains at only 2.9% of GDP.
“The challenges will not be easily overcome,” he said and pointed to systemic issues in the motor sector as well as issues like IFRS17, the need for the industry to overhaul its approach to both human resources and IT development and – perhaps most critically – the burning need for players to “create a new insurance programme” to meet the growing needs of the nation.
The overriding imperative, Mr Riswinandi said, is “to provide excellent service to customers in order to counteract the negative perceptions of insurance,” and so increase insurance penetration.
He called on the nation’s 59 life insurance companies, 76 general insurance companies, six reinsurers, 168 brokers and 43 reinsurance brokers to provide feedback to the regulator in terms of insights to make sure that the nation gains enough strength to be able to take advantage of the significant demographic gift that is coming its way.
While outlining how the OJK is very open to all new ideas from stakeholders, he also said that inputs are required from the industry players to make sure that insurance achieves the scale and penetration that an emerging nation like Indonesia requires.
The 24th Indonesia Rendezvous, where Asia Insurance Review is a media partner, continues today in Nusa Dua, Bali and concludes on Saturday.