The insurance industry in Indonesia is ready to face significant digital transformation, according to Coordinating Minister for Economic Affairs Airlangga Hartarto.
He said this in his virtual keynote speech delivered yesterday at the Indonesia Re International Conference 2024, according to a statement released by the Coordinating Ministry for Economic Affairs.
The government pays attention to the insurance sector which has become one of the main contributors to the economy and holds growth potential, says the statement.
The insurance sector’s economic contribution is reflected by its expansion of the industry along with the growth of the national economy. Insurance business mobilises domestic savings, mitigates losses, increases financial stability, and encourages trade activities.
However, the adoption of digital technology in business processes is a challenge for the insurance sector. Digital transformation in insurance is supported by artificial intelligence, machine learning, predictive analysis, mobile services, and live chats. allows insurance companies to develop their business sustainably.
Mr Airlangga said, "Overall, although challenges such as infrastructure gaps and cyber security issues still exist, the insurance industry in Indonesia is ready to face significant digital transformation. This transformation is expected to improve operational efficiency, expand market reach, increase customer satisfaction in the coming years, and also has the potential to increase the insurance industry's contribution to Indonesia's GDP."