15 March 2019
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News
2018, big loss reinsurance claims increased sharply
Jakarta (ANTARA News) - State-owned reinsurance company, Indonesia Re, recorded a significant increase in reinsurance claims during 2018. This is generally due to a large number of natural disasters and public transportation accidents and also the impact of weak premium growth.
Kocu A. Hutagalung, Indonesia Re Technical Operations Director, said that the frequency of claims from the Lombok earthquake reached 1,446 claims with a value of IDR 600 billion, while the Palu earthquake reached 1,240 claims with a value of IDR 1.07 trillion.
"One of the biggest contributors to the claims for the earthquake in Palu was damage to infrastructure, one of which was a power plant with a claim of Rp 881," said Kocu at the Indonesia Re Technical Director Gathering 2019 event in Jakarta, Wednesday (13/2).
Broadly speaking, hotels, power plants, and shopping centers were the infrastructure most affected by the earthquake in Lombok and Palu, with severity levels of 60 percent, 50 percent, and 20 percent, respectively. This is followed by telecommunications installations (15 percent) and construction works (10 percent).
In addition to the destructive impact of catastrophic events, 2018 was also marked by large claims for business operations disruption (business interruption). This triggers high losses suffered by the insured because the insured can claim losses due to business interruption which is the impact of property damage.
"Currently claims from business interruptions dominate considering that business actors think that their business is more valuable than their property assets," added Kocu.
Even so, continued Kocu, his party has prepared a very large catastrophic protection (Cover), reaching 400 million US dollars and Underlying Retention of 3 million US dollars to anticipate siege claims due to natural disasters.
"This is our commitment to provide the best protection for what all insurance companies entrust to us," said Kocu.
Furthermore, this state-owned company noted, general reinsurance claims as long as they were dominated by fire claims with a total of Rp. 4.1 trillion with a frequency of 31 percent. Meanwhile, earthquakes resulted in the largest loss of claims for natural disasters with total claims reaching Rp. 1.67 trillion, but with a frequency that tended to be small, namely only 4 percent.
"The earthquake was the biggest contributor to claims for natural disasters during 2018, amounting to 93 percent, followed by flooding with
Kocu A. Hutagalung, Indonesia Re Technical Operations Director, said that the frequency of claims from the Lombok earthquake reached 1,446 claims with a value of IDR 600 billion, while the Palu earthquake reached 1,240 claims with a value of IDR 1.07 trillion.
"One of the biggest contributors to the claims for the earthquake in Palu was damage to infrastructure, one of which was a power plant with a claim of Rp 881," said Kocu at the Indonesia Re Technical Director Gathering 2019 event in Jakarta, Wednesday (13/2).
Broadly speaking, hotels, power plants, and shopping centers were the infrastructure most affected by the earthquake in Lombok and Palu, with severity levels of 60 percent, 50 percent, and 20 percent, respectively. This is followed by telecommunications installations (15 percent) and construction works (10 percent).
In addition to the destructive impact of catastrophic events, 2018 was also marked by large claims for business operations disruption (business interruption). This triggers high losses suffered by the insured because the insured can claim losses due to business interruption which is the impact of property damage.
"Currently claims from business interruptions dominate considering that business actors think that their business is more valuable than their property assets," added Kocu.
Even so, continued Kocu, his party has prepared a very large catastrophic protection (Cover), reaching 400 million US dollars and Underlying Retention of 3 million US dollars to anticipate siege claims due to natural disasters.
"This is our commitment to provide the best protection for what all insurance companies entrust to us," said Kocu.
Furthermore, this state-owned company noted, general reinsurance claims as long as they were dominated by fire claims with a total of Rp. 4.1 trillion with a frequency of 31 percent. Meanwhile, earthquakes resulted in the largest loss of claims for natural disasters with total claims reaching Rp. 1.67 trillion, but with a frequency that tended to be small, namely only 4 percent.
"The earthquake was the biggest contributor to claims for natural disasters during 2018, amounting to 93 percent, followed by flooding with
Source: Antara
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