Indonesia: Life morbidity table to be developed
Source: Asia Insurance Review | Dec 2017
Several major players in the Indonesian life market have signed a Memorandum of Understanding to develop the country’s first morbidity table.
The parties are: Indonesia Re, Indonesian Actuary Association (PAI), Indonesian Life Insurance Association (AAJI) and Swiss Re. The signing took place on 27 October.
Head of Actuarial & Life Portfolio Management Division of Indonesia Re, Mr Nico Demus, said that currently many insurance companies have different views on calculating the amount of premiums. As a result, there is often a different interpretation of the amount of premiums to be paid.
“So with this morbidity table, we can calculate the amount of premium in accordance with the existing risk factors,” he told Antara News Agency.
According to him, work on the table will take two years because of the vast volume of data.
He said the morbidity table will be Indonesia Re’s contribution to the development of the national life insurance industry and will support the reinsurer’s goal of becoming a centre of insurance knowledge in Indonesia. A