OJK to Ease Access of Low-income Earners to Insurance Products

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  • TEMPO.CO, JakartaThe Indonesia Financial Services Authority (OJK) is committed to help low-income earners in Indonesia to gain easy access to insurance products through the development of the micro-insurance market.

    "People earning low incomes assume that insurance products are difficult to understand and to obtain. They also believe that they are expensive and claiming them is a long-drawn process," stated OJK director for the sharia non-banking financial industry, Moch. Muchlasin, as  quoted by Antara News.

    Therefore, the insurance industry should strive to provide simple, easy and economical micro-insurance products, and the OJK will cooperate with several parties to realize this.

    "The FSA joint insurance association, the Life Insurance Association of Indonesia (AAJI), the General Insurance Association of Indonesia (AAUI), and the Association of Islamic Insurance Indonesia (AASI) have developed standard micro-insurance products," he noted.

    He was optimistic that with their efforts, low-income earners will have easier access to insurance products.

    Moreover, the OJK director added that the available insurance products were of little use to low income earners.

    "Insurance products should suit the needs and understanding abilities of low income earners as they do not comprehend them properly," he explained.

    In keeping with this goal, the OJK and the insurance industry developed micro-insurance products since 2013 in a bid to encourage the availability of products that are useful to those earning low incomes.

    "The products have been tailored to suit their needs and understanding abilities," he stated.

    ANTARA NEWS | INE



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