The industry players insurance call for the creation of healthier insurance industry governance in the country, considering that recently there have been many complaints related to unit-linked products and cases of default.
Supervisor and Supervisor of the Indonesian Insurance Council (DAI) Kornelius Simanjuntak said, in order to create healthier governance in this industry, collaboration between insurance companies and insurance brokers should be encouraged.
According to him, collaboration between the two entities is important in order to eliminate mutual suspicion between the two. The reason is, mutual suspicion that has always appeared can damage the continuity of the two business entities.
"Eliminate blaming each other. What has emerged is that this broker is said to be damaging the market. He said, if you enter a broker, the premium will be destroyed,"
He also encouraged the Financial Services Authority ( OJK ) and the government to immediately form a Policy Holder Guarantee Institution (LPPP). This step is considered as an effort to encourage public interest in using insurance services. In addition, LPPP can also restore the image of insurance companies, considering that recently there have been more and more problems that have occurred in a number of companies.
According to him, if referring to Law Number 40 of 2014 concerning Insurance, the institution must be established. This is because the law mandates that the institution must exist no later than three years after the insurance law is issued.
Then, General Chairman of the Association of Indonesian Insurance Brokerage Companies (Apparindo) Mohammad Jusuf Adi said, in an effort to reform the national insurance industry, it is necessary to raise awareness from insurance companies to do business according to capital adequacy. That way, he said, it would be easier for his party to select insurance companies for customers.
“Perhaps in the future it needs consideration, insurance companies need to specialize in accordance with their internal capabilities. If the capital is IDR 3 trillion, for example, don't play for the risk of up to IDR 10 trillion. So we are brokers in order to make the selection of insurance companies easier,” he said.
On the other hand, IFG Technical Director Rianto Ahmad emphasized the need for risk management to be implemented by companies, in order to encourage a healthy insurance industry climate. He hopes that this risk management effort will become part of the corporate culture.
In addition, in improving industrial governance, he also encourages the role of actuaries. According to Rianto, IFG has recruited many actuaries to be placed in its subsidiaries.
"We are obligated to have an actuary work unit in our subsidiary company. At the board of directors level we are also trying to strengthen the actuarial side, risk management, which is more about playing the pedal, clutch or brake," he explained.
As for LPPP, the Head of Supervision Insurance General and Reinsurance of the OJK Muhammad Ridwan also agreed with the importance of the existence of the institution. However, he said, the agency is in the process of drafting.
In fact, his party has invited the Fiscal Policy Agency (BKF) of the Ministry of Finance to formulate the design of this institution. He hopes that the existence of this institution will increase public confidence in buying insurance products.
"We are designing how the institution will form, whether later it will be attached to the Deposit Insurance Corporation (LPS) or later become an institution similar to the LPS," he said.
Meanwhile, Head of the OJK IKNB 2A Supervision Department, Ahmad Nasrullah said, one aspect that must be emphasized in the insurance industry going forward is the implementation of corporate governance, corporate risk management, and compliance with existing regulations.
According to him, the problems that often occur, especially in several large insurance companies, are related to poor governance.
"I don't get tired of telling the insurance industry players, so that we really prioritize corporate governance," he said.
Meanwhile, according to the Deputy Chairman of BPKN RI, M Mufti Mubarok, it is necessary to reform the insurance industry because the number of insurance consumer complaints received by his party is quite large.
According to him, in 2021 BPKN has received as many as 2,152 complaints. Mufti said that the four issues that were recorded by BPKN during 2021 included denial of claims, misleading products, bankruptcy, and failure to pay.
"The number of consumers who complain to us is extraordinary. We call it a blessing or a disaster. Wednesday, we received a MURI record for getting the most complaints in the insurance sector," he said.
This event was also attended by a number of respondents who are experts and competent in the sector insurance . Among others, the Director of Sinar Mas Insurance, Dumasi Samosir. Also, Dedi Dwi Kristianto as CEO of PT Deswa Invisco Multitama (DIM), Insurance & Information Observer.
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