"We have to separate between how to correct current challenges and transform from existing challenges," he said at the 2022 Indonesian Financial Group (IFG) International Conference here on Monday.
There are many transformations that the insurance industry can carry out.
For instance, it can become relevant again through new risk coverage and product innovation as well as improving and personalizing customers' involvement and experience.
The current generation is very literate and can learn many new things through media such as YouTube videos and podcasts.
Therefore, insurance companies need to be innovative in educating consumers and sell their products to consumers through new communication models.
Moreover, the insurance industry must make Environmental, Social, and Governance (ESG) considerations the core feature of their business model and get involved with insurance technology companies and ecosystems, Wirjoatmodjo said.
"I believe that when I see companies such as GoTo, Bukalapak, bank account opening products and even pay-later facility have been integrated into the ecosystem," he noted.
“So, I think that insurance must move with the same method," he added.
Other transformations that the insurance industry needs to carry out are developing a new business model in the digital era, calculating its impact using data and analytics, and modernizing the platform's core technology, he said.
In addition, insurance companies must discuss productivity obligations and reorganize the diversity of culture and work methods to draw and maintain sellers.
The entire transformation of insurance companies can only be done through good synergy between actors and industry regulators.
During the event, Coordinating Minister for Economic Affairs, Airlangga Hartarto, said that, based on its penetration in Indonesia, there is a lot of scope for improvement in the insurance sector.
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Translator: Agatha Olivia V, Fadhli Ruhman
Editor: Rahmad Nasution
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