Jakarta (ANTARA News) -- BUMN reinsurance, Indonesia Re, recorded the total general reinsurance claims received by this state-owned company due to the many natural disasters that befell Indonesia during 2018 reached more than IDR 284 billion based on data received until December 2018. The number of claims came from the Lombok earthquake with a total claim of IDR 87.6 billion and the Palu & Donggala earthquake amounted to Rp. 196.7 billion.
 
Portfolio Management & Claim Division Head Indonesia Re, Amir Muda L. Tobing said, the laden nature of natural disasters that have occurred throughout Indonesia recently, is a warning to the insurance and reinsurance industry to review the cover capacity for catastrophic risks.
 
"Indonesia, no doubt, is a country full of disasters. This is a challenge for the national insurance and reinsurance industry," he said.
 
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 terms of frequency, hotels are the most affected with a percentage reaching 40 percent, followed by office buildings (30 percent) and factories (20 percent)," he said. 
 
Banten and Lampung Tsunami
 
Based on Maipark’s data of the earthquake risk session, the total national insurance exposure in Banten and Lampung is IDR 307 trillion from 17,843 risks. From the exposure value, there are at least 191 risks worth Rp. 15.9 trillion located on the shoreline. The risk in this coastal area is likely to have been affected by the tsunami on December 22, 2018.
 
Amir continued, the total risk managed by Indonesia Re in Banten and Lampung reached around Rp. 6 trillion from around 50 risks originating from facultatives plus the unknown frequency of the treaty.
 
"At this moment, we have not received notifications from the ceding companies for general reinsurance claims due to the Tsunami in Banten and Lampung, but we expect to share the claim even though it is not as big as the Palu and Lombok earthquake."
 
Meanwhile, Executive Director of the Indonesian General Insurance Association (AAUI) Dody AS Dalimunthe said that his party is currently collecting claim report data from all members of the insurance company.
 
“Collecting claim report data will take time, as the current field situations are unconducive," said Dody some time ago.
 
Based on the Indonesian Earthquake Standard Insurance Policy (PASGBI), earthquake insurance is insurance that guarantees loss or damage to property and / or interests insured directly caused by the danger of earthquakes, volcanic eruptions, fires and explosions that follow an earthquake and / or volcanic eruptions, and tsunamis.
 
In the latest Indonesian earthquake insurance zoning which has been enforced since January 2017, Pandeglang, Lebak, Serang, Cilegon, South Lampung, and Pesawaran are in earthquake zone IV, while Tanggamus is in the highest earthquake zone, namely zone V.