Asian News - Indonesia: Haze disaster to spark claims avalanche
Source: Asia Insurance Review | Dec 2015
The Otoritas Jasa Keuangan (OJK) has said that the haze disaster resulting from forest fires in several provinces in Indonesia is likely to spark a surge in insurance claims.
OJK CEO of non-bank Financial Industry Supervision Dr Firdaus Djaelani said that the insurance industry will be affected by a number of economic activities that are forced to stop because of the haze, reported Bisnis Indonesia. According to Dr Djaelani, the claims usually flow in well after the disaster ends.
This year’s haze, which started in May, was aggravated by the El Nino effect. It affected Brunei, Cambodia, Malaysia, Singapore, Thailand, Vietnam, the Philippines and Indonesia itself. The situation is expected to ease with the yearend northeast monsoon season.
Based on its own calculations, the Indonesian government estimated that the cost of mitigating the crisis this year would range from IDR300 trillion (US$22 million) to IDR475 trillion. More than 500,000 cases of acute respiratory tract infections have been reported in the country since 1 July.
Across the region, businesses have been hit, schools closed, events cancelled and flights affected by the haze.