Magazine Table of Contents
There is continued buoyant growth in life and non-life in Indonesia. OJK has taken active steps to even set tariff for motor, property, EQ, and floods to stop price war in the market while in life, the boost comes from rising wealth as well as the national health insurance schemes and a greater focus on microinsurance.
Indonesia's Financial Services Authority, known locally as OJK, has been operating for a year now following the merger of several regulatory agencies into one concerted body. Dr Firdaus Djaelani, CEO of Non-Banking Financial Institutions & Member of the Board of Commissioners at OJK reports on the tangible progress made thus far.
By Ridwan Abbas
The opportunities in Indonesia is no secret. The secret would be how to succeed in this intensely competitive market. Mr Kevin Strain from Sun Life Financial Asia shares his insight on opportunities, winning the trust of customers, recruiting and training advisers, as well as the need to have the same philosophy as bancassurance partners.
Indonesia's insurance industry is transforming, from the implementation of Social Security Administrative Bodies (BPJS) with healthcare as one of its focus, evolution in the regulatory structure with the establishment of the Financial Services Authority (OJK), to the rise of the middle class with higher levels of consumption and new buying habits. Ms Handayani of AXA Mandiri tells us that they are gearing up to face these changes by focusing on growing alternative distribution channels and educating customers on the importance of insurance protection.
Despite consistent double-digit growth, Indonesia's non-life sector faces key challenges, particularly with price competition and risk management relating to CAT exposure. On a positive note, many of these challenges are currently being confronted by the regulator. We look at some of the possible stumbling blocks and solutions on the horizon.
By Ridwan Abbas
By Ms Susandarini, Partner at Susandarini & Partners in association with Norton Rose Fulbright Australia