Monday, October 13, 2014

Insurance Awareness Still Needs to be Improved

Contribution of the insurance sector to Gross Domestic Product (GDP) in Indonesia continues to increase, from 1.82% in 2008 to 2.16% in 2012 This increase occurred because there was an effort to increase public awareness of the importance of insurance. Chairman of the Indonesian Insurance Council (IIC or DAI), Hendrisman Rahim revealed, although the ratio between the Indonesian GDP increased, but the understanding of and public access to insurance products and services must continue to be encouraged from time to time.

"With the event such as Insurance Day 2014 we hope to increase public awareness of the importance of insurance," said Hendrisman, the Insurance Day 2014 press conference entitled 'Generation Intelligent Insurance', in Jakarta, Monday, October 13, 2014.

Results of a national survey conducted literacy Financial Services Authority (FSA) in 2013 showed that only 17.84% or approximately 18 out of every 100 residents of Indonesia who already understand the benefits of insurance as well. And only approximately 12 of every 100 residents of Indonesia who use the products and services of insurance or 11.81%.

Hendirsman said, the low insurance penetration reflects that there are still many people who do not understand the importance of insurance for life and also their financial planning. "It is unfortunate, considering the population of Indonesia is very large," he said.

Hendrisman explains, Indonesia's population of 240 million people is a potential market for the insurance industry. Moreover, the growth of the middle class in Indonesia is a big reach 8% per year. Currently the number of middle class in Indonesia reached 50 million people and will peak in the next 25 years.

"The market potential is also evident from the large number of foreign investors or foreign companies began to enter Indonesia several times lately," he concluded.

No comments:

Post a Comment