BPPDAN towards an independent insurance rate regulation agency

Jakarta (ANTARA) - Head of the National Insurance Data Center Management Agency (BPPDAN) Arie Surya Nugraha stated that his party was ready to become an independent national insurance rate regulation agency.

He stated that BPPDAN is currently strengthening its capabilities to provide more comprehensive data processing services and tariff calculations for the country's insurance industry.

"Among other things, we are currently introducing the stochastic method for calculating tariffs because it has proven to provide better results than the deterministic method," he said at the BPPDAN Workshop 'Stochastic Methods for Calculating Property Insurance Rates Based on Micro Data' in Jakarta, Tuesday. 

For stochastic development, BPPDAN has supplied underwriting data for the last 10 years to the Statistics Group (KK) of the Faculty of Mathematics and Natural Sciences (FMIPA) Bandung Institute of Technology (ITB). 

Ari continued, stochastic is considered capable of reducing the possibility of errors in the process of verifying an enormous amount of insurance policy data. This methodology requires the collection of comprehensive and accurate data so as to optimize tariff determination based on the risk of the policy. 

"So in calculating the tariff, 80 percent of the objectives are data preparation, including cleansing. So don't get the data wrong, it will make the processing easier," said Arie.

Furthermore, Arie said, his party is currently focusing on increasing the number of policy sessions from the current 20 percent to more than 50 percent next year. He targets that next year 60-70 percent of members will have planted 20 percent of mandatory sessions. 

"In order to achieve this, infrastructure improvements to B2B approaches to the insurance industry are being intensified," he continued.
On the same occasion, the Head of the ITB FMIPA Statistics KK, Dr. Sapto Wahyu Indratno reminded that the function of BPPDAN in managing insurance data is very dependent on the quality of data reported by members. Likewise in the application of the stochastic method that was socialized.

"So it takes cooperation amongst participants to try to support qualified data. The stochastic method is also very dependent on any micro information obtained from the cedant, so it has to be reciprocal. You can no longer enter random data," he said.