Tugure Webinar: GCG Principles Key to Sustainable Insurance Businesses

Jakarta — The implementation of Good Corporate Governance (GCG) is a necessity for every insurance company to ensure the sustainability of their business and maintain public trust in the financial services industry.

This was highlighted in the Tugure Webinar titled "Good Corporate Governance Based on the Latest National & Global Best Practices References," organized by PT Tugu Reasuransi Indonesia (Tugure) in collaboration with the Indonesia Risk Management Professional Association (IRMAPA) on Wednesday, August 16, 2023.

Jeffrey S. Siregar, the Executive Director of the National Governance Policy Committee (KNKG), who was the main speaker, stated that governance is relevant because it aligns with a company's goal to run a sustainable business. He emphasized that sustainability requires good corporate governance or the application of GCG principles.

"Because companies want to sustain to achieve sustainability, governance is paramount. GCG is paramount," he said.

Jeffrey added that the theme of good governance, both in terms of academic principles and the application of GCG, is not static but continuously evolving. Therefore, every company needs to keep up with developments in the field and apply them in their own operations.

He praised Tugure and Tugure Academy for their efforts in disseminating information related to GCG to the insurance industry.

"It's an outstanding initiative by Tugure to establish or develop Tugure Academy," Jeffrey noted.

In the same context, Charles R. Vorst, Chairman of IRMAPA, mentioned three important aspects regarding the implementation of GCG in the insurance industry.

First, the implementation of GCG is not only important for maintaining public trust but is also crucial for the sustainability of businesses. He emphasized that good corporate governance should be the foundation for conducting business sustainably.

"In other words, it will be difficult for us to do sustainable business without a solid foundation of good corporate governance," he explained.

Second, Charles stated that the public is becoming increasingly educated, especially when it comes to the application of GCG by businesses. Many legal issues concerning companies are often related to a lack of GCG implementation. 

"Many cases have occurred, and these cases educate the public, making them smarter in choosing trustworthy insurance companies," he said.

Therefore, he stressed that the implementation of GCG should not be merely cosmetic but must genuinely ensure its integration into the business processes.

"Who else will safeguard our industry if not its participants?" Charles asked.

Third, Charles highlighted that the implementation of GCG should be accompanied by efforts to measure its achievements. He emphasized the seriousness of insurance companies in implementing measurable GCG practices, even though there is currently no specific Financial Services Authority (OJK) regulation requiring insurance companies to assess their GCG implementation.

"Conduct assessments of GCG implementation in your respective organizations to measure the level of achievement," he urged.

Meanwhile, Yuliani Winarsih, Corporate Secretary of Tugure, also emphasized that in the ever-evolving dynamics of the insurance industry, the role of good corporate governance becomes increasingly important.

"Good Corporate Governance is not just a set of rules and procedures, but it is the foundation that underlies how a company manages itself, interacts with stakeholders, and conducts its operations with ethics and integrity," she explained.

She conveyed that a strong implementation of GCG is vital, especially in the insurance industry, as trust is one of its primary assets. According to her, GCG forms the basis of ethics and integrity in every decision and action, not only within the internal scope of the company but also in interactions with shareholders, customers, regulators, and the wider community.

Through this Tugure Webinar, Yuliani continued, insurance professionals have a golden opportunity to deepen their understanding of GCG based on the latest best practices, both at the national and global levels.

"Let's make the most of this opportunity to enhance our knowledge, share insights, and build a community that cares about GCG in the insurance industry," she concluded.