Close Language Selection

Despite Lingering Uncertainties, Tugure Remains Optimistic in Facing 2022

08 Oct 2021
Despite Lingering Uncertainties, Tugure Remains Optimistic in Facing 2022

Jakarta - PT Tugu Reasuransi Indonesia (Tugure) remains optimistic in facing the insurance and reinsurance market in 2022 despite the lingering uncertainties caused by the ongoing impact of the Covid-19 pandemic. Tugure's President Director, Adi Pramana, predicts that the insurance and reinsurance market in 2022 will still face uncertainties, similar to this year. However, he stated that the company remains optimistic and has implemented various policy variations to tackle these challenges.

"But this year, when business is slow, still sluggish, the curve is flat. If this year reached the bottom of the curve, next year will be fantastic because the growth will be much stronger," explained Adi in an interview with Asia Insurance Review for the October 2021 edition. Adi mentioned that Tugure will also remain cautious in facing potential risks, similar to the previous year.

"Last year, we experienced the pandemic, and our business slowed down with slightly reduced revenue," he clarified. In 2020, Tugure also faced significant claims from the Jakarta floods in January and February. Additionally, the company had several serious health insurance claims, particularly related to Covid-19. Despite these circumstances, Adi stated that Tugure tends to reflect on its portfolio management and underwriting policies. This step, he explained, is taken to facilitate the company in managing the occurring risks.

"We have reviewed our underwriting policies in 2019, so this is the second time we have done it, and we took the opportunity to rebalance our portfolio." "We have also become more mature in facing the risks this year," added Adi. The Strength of Local Reinsurance The implementation of economic integration policies within the framework of the ASEAN Economic Community opens opportunities and increases competition among local reinsurers.

"In the ASEAN free trade area, we will be more open to our neighbors," said Adi. However, Adi reminded that the current account deficit should also be a concern, especially amidst the pandemic. Therefore, optimizing the domestic market should be a choice. "Each country needs to leverage what they have first and then engage with other countries.

Finding the perfect balance is quite difficult, and that is what the government is trying to do." In the long run, Adi is confident that there will be significant changes in the dynamics between domestic and foreign reinsurers. "But in the short term, I do not expect any significant changes," he said.

Link > Antara News

Related News and Feature