Road to CNBC Indonesia Awards Insurance Ownership Still Low, Turns Out This Is the Cause Tech – 2 hours ago

Jakarta, CNBC Indonesia – The number of insurance owners in society is said to be only 2.75% or around 7.5 million of the total population of Indonesia. This number is relatively low compared to other neighboring countries such as Malaysia, Thailand and Singapore.

Founder & CEO of FUSE Andy Yeung said that the low penetration of insurance in society means that there is still untapped potential, due to the large population of Indonesia. He said there are several factors that cause low insurance ownership, starting from literacy, price, to distribution channels.

Low literacy regarding the function of protection means that people do not understand the importance of having insurance. Apart from that, the premium price of insurance products also makes the premiums quite expensive and less affordable for the public.

“We see that insurance at premium prices makes it unaffordable for the wider community,” said Andy at the Road to CNBC Indonesia Awards ‘Best Telco and Tech Companies’, Thursday (23/11/2023).

The lack of insurance distribution media is also an obstacle. For this reason, it is necessary to distribute insurance that is effective and able to reach the community down to the smallest unit. As a first step, Andy emphasized that insurance premium prices must be more affordable.

This also encourages him to utilize technology to create insurance that is affordable to the public.

“So how do we use technology to increase efficiency. Even though an insurance company is abroad, it can still protect and operate,” he said.

Next, product distribution costs must be taken into consideration. Andy emphasized that this is the right time to use technology to introduce insurance at affordable prices.

“I think it’s best to focus on how to utilize technology, then utilize the banking network because this is also quite challenging in attracting new customers,” he said.

[Gambas:Video CNBC]

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