Extreme Weather Risk, Loss Insurance Premiums Will Not Increase

Loss insurance premiums are judged not to increase despite the potential for increased risk due to extreme weather that surrounds Indonesian territory.

Business Development Director of PT Asuransi Jasa Indonesia or Jasindo (Persero) Sahata Lumban Tobing explained that the insurance premiums, especially motor vehicles and property, will not increase in the near future.

He confirmed there was an increased risk of bad weather that could potentially turn into a disaster. However, this is still relatively protected by the current premium.

"It seems that there will not be an increase in premiums because the nature of the loss [due to extreme weather] has not been calculated and the premium increase needs an industry agreement," Sahata told Bisnis on Sunday (05/01/2020).
He explained that the amount of motor vehicle insurance premiums is regulated in KBM 12 Clause and property insurance is regulated in clause 4.3. The insurance industry will set the premium amount according to the clause.

Changes in the amount of premiums themselves will consider changes in risk that need to be protected. Changes to these standards will be discussed by the insurance industry and then determined by the Financial Services Authority (OJK).


Next 1