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Marine Hull’s insurance loss ratio increased, premium rate war has to stop
Tug boat towing a sailing cargo ship in Pelabuhan Tanjung Perak, Surabaya, Jawa Timur, Senin (3/12/2018).
Jakarta (ANTARA) - Reinsurance State Owned Enterprise, Indonesia Re, expected the premium rate war between marine hull insurance agents to stop immediately, in order to stabilize the increasing of loss ratio in insurance industry.
Marine Underwriting Department Head Indonesia Re, Gadis Purwanti said that based on Indonesia Re‘s facultative business data, the claims from tugboat and barges in 2017 reaches up to Rp.113,6 billion. It raised up to Rp.208,3 billion, and on semester 1 in 2019 reached up to Rp.218,4 billion.
“Currently, the premium rates are very competitive, while the loss stake is also high,” she explained, while adding that she has also performed technical data socialization with the Indonesia Professional Reinsurance (IPR) in order to determine premium rate reference. It was finally decided around 0.8 percent from Total Sum Insured (TSI), specifically for Tugboats and Barges as the dominant type of boats.
Several months after the socialization, the increasing rate for Marine Hull is beginning to succeed. Some applied 0.6 to 0.7 percent rate and it has improved the health of Ship Frame Insurance in Indonesia.
She said that based on IPR statistical calculation data, the best rate is 0.8 percent.”
Furthermore, this red-plate enterprise actively performed socialization meetings to discuss the Marine Hull insurance current issues and upscale it to a higher level by conducting the socialization meetings onboard a sailing ship from Jakarta to Surabaya, together with the ceding companies.
In this onboard the ship meeting called the Marine On-Board meeting, the ceding companies were invited to observe the real situation on the field.
“Through ‘Marine on Board', we want to give an overview on how high the loss ratio is. We need to pay attention to the marine hull insurance industry common problems, such as tugboat power, bad weather, and many more,” she explained in her closing remarks.
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