Indonesia: Regulator mulls ways to extend microinsurance reach
Source: Asia Insurance Review | Sep 2017
Indonesia Microinsurance Regulation
Inadequate market reach is one constraint on the development of microinsurance in Indonesia, given the size of the country and its scattered islands, according to the Financial Services Authority (OJK).
Mr Moch Muchlasin, the OJK’s Director of Non-Bank Financial Institutions, said that his side is still running proposals to see how microinsurance products can be introduced to the different corners of the country.
“In 2018, we (OJK) will try to sell microinsurance products via the digital channel such that policy applications and premium payments are all digital. This makes it easier for customers to buy insurance,” he said.
The OJK said that microinsurance in Indonesia has shown encouraging developments over the past two years. In the first quarter of 2017, microinsurance premiums reached IDR278.2 billion (US$20.8 million), rising by 80% over the corresponding quarter in 2015.
Mr Muchlasin said that since 2013, the regulator has conducted a series of programmes to promote the development of microinsurance. Among them are increasing public awareness about insurance and increasing the capacity of insurance players. A