OJK wants mandated insurance coverage for Indonesians: Report

Plans for vehicle insurance are in discussion.

The Financial Services Authority of Indonesia (OJK) is advocating for mandatory insurance policies for the general public, according to a Tempo report.

Ogi Prastomiyono, Chief Executive of Insurance, Financing Institutions, and Pension Fund Supervisor, has expressed that these mandated insurance policies should be introduced, particularly in situations involving large gatherings, such as football matches.

"There is no insurance for such instances since it's not mandated. As we can see from Kanjuruhan's case, there was no insurance after the investigation," Prastomiyono told Tempo.

"With a mandated insurance policy, the tickets could allot Rp50,000 for insurance." Prastomiyono added.

This approach is also being promoted in other sectors, including transportation, as the current insurance coverage only extends to passengers facilitated by Jasa Raharja.

Looking ahead, there is a plan to introduce mandated insurance for vehicle insurance as well.

ALSO READ: Indonesia’s non-life insurance outlook grim: AM Best

Prastomiyono noted that if this plan is put into action, insurance companies will introduce their products or collaborate with other firms to offer such coverage.

Previously, Mahendra Siregar, the Head of the Board of Commissioners at OJK, highlighted the low insurance penetration in Indonesia, which currently stands at just 2.75%. This means that only 7.5 million out of 275 million Indonesians have insurance coverage.

Also Read

Tysers appoints new leaders to enhance APAC operations

Tokio Marine Kiln appoints new marine leader for APAC

Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

I want to download the media kit