Increase the insurance penetration rate by promoting digital insurance transformation (including leveraging technology to augment the capabilities of existing insurance agents) which can help more people get adequate safeguards. (20 and 27)

Simplify the process of applying for insurance, including complicated registration, ineffective claims processing, and high premiums. InsurTech players aim to provide quick access to insurance coverage, eliminating the need for individuals to go via brokers or fill out lengthy paperwork. (27)

Entry of more players and increase in competition will result in better choice of products, more suited to the needs of the end consumers. Covid-19 has intensified MSME players' interest (~88% MSMEs shown interest) in business interruption insurance products, with insurance scheme features. (3)

Customer acquisition cost is high as time and money is spent in educating consumers about insurance. Many people still view insurance as an expensive and complicated product. (27)

Face-to-face interaction maybe required to build trust with the investor and offer a sense of safety while buying insurance online. (27)

Potential cyber attack (system's vulnerability to customer data theft and abuse) can impact the economy adversely with leakage of private customer information (7)

Default in payment of insurance premium will render the policy cancelled, resulting in waste of time and money spent in acquiring the customer.

Gender inequality and/or marginalization risk: Vulnerable sections of society will only be able to afford low-premium based products, thus requiring more innovation in insurance product offering.

Low insurance penetration in Indonesia increases GoI's burden to bear the cost of providing compensation for injuries at work or cost of rebuilding property after catastrophes.

InsurTech platforms require strong internet connectivity. Thus, limited accessibility for insurance coverage can restrict the improvement in quality of life of the underinsured population.

Failure to adapt the product design and delivery for rural, low resource settings might see the product scaling only to high income population.

Absence of adequate customer education could hamper policy renewal and premium payments process, leading to high dormancy rates. Absence of customer protection measures could result in data breaches.

Gender inequality and/or marginalization risk: Lack of regulation and control may result in exploitation of underserved population.

Provision of insurance products to improve insurance penetration, particularly for low income groups, leading to stability in economic growth.

The 2021-2021 MPSJKI: is directed at enhancement of the FSS resilience and competitiveness through strengthening resilience and competitiveness, financial services ecosystem development, and digital transformation acceleration. (3)

Structural Framework 2021-25: FSS resilience/competitiveness is carried out through strengthening capital and consolidation of FSI; strengthening governance, risk management and market conduct; aligning regulations with international standards; and cross-sector supervision (3)

OJK Structural Framework 2021-25: on Financial Services Ecosystem Development aims to expand the role of FSS in supporting priority economic sectors, job creation and regional development. It optimizes special MSME programs such as Micro Waqf Bank and Micro Insurance. (3)

Ministry of Health's Regulatory Framework 2020-2024: plans the direction of the draft Law on the National Social Security System. To improve the quality of services, participation is prioritized for the poor, neglected children and underprivileged. (41)

With Covid-19, GoI has implemented several policies such as financing restructuring, relaxation of insurance industry, and relaxation of financing industry. (13)

Fiscal incentives: Due to Covid-19, GoI issued several regulations for relaxation of tax, under Law No. 1 of 2020. Article 5 of Perpu 1/2020: corporate income tax rate for companies under Income Tax Law is adjusted from 25% to 22% for the 2020 and 2021; and 20% for 2022 onwards. (45)

OJK Regulation No. 27/POJK.05/2018 of 2018: regulates Financial Soundness of Insurance Companies. (42)

OJK will prepare regulation framework in relations to digital insurance and reinsurance brokerage services. The regulatory framework for governance and risk management in the FSS is currently in place for banks, insurance companies, financing companies, and pension funds (3).

OJK Regulation No. 38/POJK.05/2020 of 2020: regulates the scope of insurance and reinsurance business, standards of conduct, reinsurance (including sharia) agreements, claims settlement, expertise in the field of insurance, sharia principles in sharia insurance and reinsurance. (42)

Reg. No. 3 of 2020 for Foreign Ownership in Insurance Companies: maximum foreign party ownership of insurance companies is upto 80% of paid-up capital. The provision is exempt for foreign party owned public companies and insurance companies, with an ownership of >80%. (43)

OJK Letter No. S-18/D.05/2020 of 2020: regarding Technical Adjustment on the Implementation of Marketing Insurance Products Linked with Investment in Respect of the Impact of the COVID-19 on Life Insurance Companies and Sharia Life Insurance Companies supports digital insurance. (44)

Corporates: PT Asuransi BRI Life, PT Astra Aviva Life, PT Lifepal Technologies Indonesia, Pasar Polis, Fuse, Qoala Investors: FWD Group Management Holdings Limited, PT Sedaya Multi Investama, Cathay Capital Private Equity SAS; Insignia Ventures Partners; Hustle Fund Management, LLC

Financial Services Authority (OJK), Ministry of Finance, Ministry of Health

International Association of Insurance Supervisors (IAIS)

Indonesia Life Insurance Association OR Asosiasi Asuransi Jiwa Indonesia (AAJI), YLKI, General Insurance Association of Indonesia (AAUI), Indonesian Social Security Insurance Association (AAJSI), Insurance Council Indonesia (DAI)