AAUI Studies On Typhoon Coverage
The Indonesian General Insurance Association (AAUI) studies the possible special insurance for typhoon following the escalating damages caused by the natural disaster. Chairman of AAUI Kornelius Simanjuntak said the company considered the need for special insurance product to help ease the customers to buy special insurance policy for the typhoon risk coverage. The specification here is important so as to have more complete claims due to the fact that some cases of typhoon failed to meet the coverage criteria as stipulated by property insurance policy. "Recently typhoon frequently happens with significant death tolls and damages. We consider it is necessary to study the formation of special insurance policy for typhoon," he said last week. The special risk of typhoon coverage is based on the experiences of other special insurance products providing more benefits customers such as terrorism insurance.
Bisnis Indonesia, 05 July 2010

Indonesia: Insurance Industry Eyes High Growth
The insurance industry is forecasting healthy growth this year but says low income levels and a lack of education resulting in widespread public skepticism about insurance are preventing even greater gains. The Indonesian Life Insurance Association (AAJI) said it expected revenue for the life and health insurance industry to grow by up to 50 percent to Rp 120 trillion ($13.2 billion), compared with 76 percent growth last year. The Indonesian General Insurance Association (AAUI) has forecast 15 percent to 20 percent revenue growth to Rp 27 trillion for all other forms of insurance apart from life insurance, significantly outpacing last year's 5.7 percent growth. AAUI head Kornelius Simanjuntak said growth in automotive, property and infrastructure insurance was boosting the general insurance expansion. "Indonesia has good economic fundamentals and as long as the country can achieve the government's goal of 5.7 percent growth this year, we're optimistic that the industry can grow between 15 and 20 percent," Kornelius said.
The Jakarta Globe, 1 July 2010

Indonesia: Insurance Broker Eyes On Power Plant Insurance
Insurance and reinsurance brokers aim at power plant sector risk coverage following the mounting potential of the 10,000 megawatt (MW) power plant project realization. Secretary general of the Indonesia Association of Insurance (APARI) Bambang Suseno, said the government added the amount of power plant capacity in the past several years and increased the insurance objects. "Insurance object here could range from infrastructure development process up to power production. The potential risk management of power plant in Indonesia increases this year following the realization of 10,000 MW power project," he said on the sidelines of seminar on Power Plant Risk Management yesterday. However, Bambang cannot mention the insurance premium due to the various power plant characteristic. Besides, water-based machine has lower risk than the other machinery. The sector has not been handled properly due to the covered risk complexities. Besides, the lack of broker knowledge of risk management for power plant is also challenging factor. The realization of power plant business premium now stands Machine breakdown is the top factor causing the highest loss or 42 percent, explosion and fire 30 percent, natural disaster 22 percent, and other factors 6 percent.
Bisnis Indonesia, 11 June 2010