The Global Risks Report 2024 highlights the impact of post-covid-19 pandemic tensions and the Russia-Ukraine war are still being felt globally.
Risks such as economic downturns, inflation, labor shortages and energy supply disruptions are top of mind for business leaders around the world.
On the other hand, the insurance penetration rate in Indonesia in 2022 was at 2.27%, while the insurance literacy rate reached 31.7% and insurance inclusion was only 16.6%.
“In other words, there is still a significant gap between insurance literacy and inclusion in Indonesia. This condition also shows that the risk will continue to grow over time. In Southeast Asia, including Indonesia, economic decline is also the biggest concern for business leaders,” said Douglas Ure, CEO of Marsh McLennan Indonesia, President Director of Marsh Indonesia, in a discussion in Jakarta, Monday (19/8).
In this context, Douglas continued, his party believes that insurance brokers have an important role in carrying out risk management for businesses in Indonesia.
“We are committed to raising awareness about the role of insurance brokers in Indonesia, especially for companies and business owners,” he said.
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According to him, insurance brokers not only recommend insurance policies, but also play a crucial role in identifying, planning and managing risks.
“Brokers also act as clients’ representatives to ensure that risk management strategies are implemented so that they can effectively protect their businesses and workforce,” he said.
Douglas added that insurance brokers play a critical role in helping businesses manage risk. To that end, Marsh plays a role in providing the knowledge and expertise to protect businesses from risks that the company itself may not have considered.
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“By understanding the risks involved and seeking optimal coverage, insurance brokers enable businesses to focus more on development and growth,” he explained.
According to Marsh Indonesia SVP Business Development Leader Nova Tambunan, there are a number of benefits to using an insurance broker.
First, insurance brokers use their knowledge and expertise to identify areas of coverage that may not have been considered but could potentially expose the business to risk.
Also read: Sun Life Indonesia Strengthens Business Penetration in East Java
Second, insurance brokers can find the best insurance coverage and services so that companies can focus on business development.
“If a claim occurs, the broker will assist in providing consultation and fulfilling the claim submission requirements, so that the claim can be resolved as quickly and efficiently as possible,” he said.
“Then, insurance brokers have good cooperation with more than one insurance company, insurance brokers also act as advisors and consultants, and finally insurance brokers can conduct industry research on potential risks, and provide the latest information on the development of the insurance industry and its regulations,” he concluded. (N-2)
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