Indonesia: Quake reinsurer plans disaster insurance scheme
Source: Asia Insurance Review | Aug 2015
Reasuransi Maipark Indonesia, which specialises in earthquake risk, is aiming to set up a disaster insurance scheme. It is also targeting an increase in gross premiums by doubling the contribution of non-earthquake business in the second half of this year to 20% from 10%.
“All these plans need consolidation. If the plans can be immediately realised, the gross premium could be significant,” said Maipark’s President-Director Mr Yasril Y Rasyid, as quoted in Bisnis.com.
Mr Yasril is optimistic that Maipark will chalk up gross premiums of around IDR300 billion (US$22.5 million) this year. This is because the company has already realised gross premiums of up to 40% of the year’s target of IDR287 billion. When compared with last year’s target, the figure represents growth of 14%. “The trend is that increases are predominantly in the second half of this year,” he said.
Looking at retakaful too
Meanwhile, Maipark has proposed to the Fiscal Policy Agency to establish the natural disaster insurance scheme. “Currently, we are in talks with the provincial governments of West Sumatra and Jogjakarta regarding natural disaster insurance,” he said.
In addition to the disaster insurance scheme, Maipark also intends to establish an Islamic reinsurance unit to capture business opportunities in retakaful.
To ensure cooperation in providing protection against special risks, the Indonesian government had made it compulsory for all licensed general insurance and reinsurance companies operating in Indonesia to participate in a joint undertaking called the Indonesian Earthquake Reinsurance Pool or Pool Reasuransi Gempa Bumi Indonesia (PRGBI). The pool began operations on 1 January 2003. With effect from 1 January 2004, the PRGBI was transformed into a public liability company, Maipark.