Indonesia’s Financial Services Authority Launches Micro-insurance

Friday, October 18, 2013

The Financial Services Authority (OJK) hopes a newly launched blueprint will support the marketing and implementation of micro-insurance products across Indonesia by 2016.

The OJK blueprint was launched in Jakarta on Thursday, in partnership with the Life Insurance Companies Association (AAJI); General Insurance Companies Association (AAUI); Sharia Insurance Companies Association; state banks (Bank Mandiri, BRI, BNI, BTN); state postal firm PT Pos Indonesia; state pawn shop PT Pegadaian; and state financing firm PT Permodalan Nasional Madani (PNM).

According to OJK commissioner overseeing non-banking financial industry Firdaus Djaelani, it is expected that the blueprint will help expand the micro-insurance segment in the domestic market.

Data from the OJK shows that so far the number of policy holders in Indonesia stands at 67 million people. Of that amount, about 10 million are individual policy holders and 57 million are group policy holders.

“Compared to the total population of 250 million, that figure is still relatively small. Many Indonesians remain uninsured, especially those with a low-income. We hope the situation will improve in 2016,” he said during the event.

Source: The Jakarta Post (link opens in a new window)

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financial inclusion, microinsurance