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Current Conditions are Generally Healthy, Insurance and Reinsurance Industry is Growing Potential

16 Feb 2023
Current Conditions are Generally Healthy, Insurance and Reinsurance Industry is Growing Potential

Jakarta - The national insurance industry is believed to still have the potential to grow supported by capital capacity which is generally in good health.

Executive Director of the Indonesian Insurance Council (DAI) Erwin Noekman said that his party was optimistic that the insurance industry still had great potential to develop in the future. He believed the growth opportunity even though the insurance industry in recent years was faced with negative sentiment due to a number of problems experienced by insurance companies.

He believes the national insurance industry still has a strong capacity to fulfill obligations to the insured or policyholder.

"In the insurance and reinsurance industry, claims are a moment of truth for the industry," he said, Tuesday (2/14/2023).

That, he explained, was evident from the general financial data of industrial financial released by the Financial Services Authority (OJK). Based on these data, Erwin said that so far the life insurance, general insurance and reinsurance industry as a whole still have adequate capacity to pay claims.

"We see that this financial industry is still in a healthy condition," he said.

Separately, the Technical Director of PT Tugu Reasurance Indonesia (Tugure) Fadlil Iswahyudi said that the insurance sector was still a supporter of the national economy. Moreover, he added, the community was increasingly aware of the importance of insurance.

"Insurance is a form of good financial planning. Learning from the conditions of uncertainty over the impact of Pandemi Covid-19 in which many people have difficulty tackling the situation that comes suddenly that is unexpected with the amount that is not small, "he explained.

Fadlil explained that reinsurance became a supporter of the national insurance industry. Because the reinsurance company plays a role in providing services in the form of re -coverage of the risks faced by insurance companies.

Tugure, as one of the reinsurance in Indonesia, he continued, always maintains sustainability by improving the company's financial performance capabilities to be able to provide the best service for business partners. This is reflected in the financial statements of the quarter/IV 2022 which shows the strengthening of technical reserves in the form of increased assets and liabilities.

Tugure also proved a commitment to his business partners to provide support for re -insurance to insurance companies with the realization of gross claims of Rp1.89 trillion in 2020, Rp1.41 trillion in 2021 and Rp1.28 trillion in 2022.

"The condition was strengthened by a stable financial capacity rating from 2017 until now, namely A+ (IDN); Stable outlook published by Fitch Ratings Indonesia, "he said.

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