Jakarta (ANTARA) - The insurance industry has clocked a growth of 8.67 percent per year on average in the past five years, chief executive of non-bank finance industry supervisor at the Financial Services Authority (OJK), Riswinandi Idris, said.

"Within the pandemic-to-endemic transition period, we also observed a promising prospect that this industry can reach pre-pandemic growth level," he noted during the “Building the People's Trust toward Life Insurance Industry” webinar on Thursday.

In 2020, when the COVID-19 pandemic was still widespread in Indonesia, assets and investments in the insurance sector, particularly life insurance, contracted 1.63 percent and 1.34 percent year on year, respectively.

However, in April 2021, the assets and national life insurance industry started to recover, as was evident from the growth of assets and investments by 9.27 percent and 8.20 percent on year, respectively.

Idris said that the optimal utilization of information technology development can further bolster the growth of the insurance industry.

The utilization of information technology can open broader financial access more intensively, he explained.

In addition, it can also help financial service business actors to provide services more effectively and efficiently without being hindered by the geographical issue of Indonesia's ever-expanding territory.

He said that information technology can be used to bolster insurance inclusion, which only reached 76.19 percent in 2019.

However, insurance companies have a larger responsibility of providing quality products and services to customers.

"In line with the industry's main nature that provides accountability service over risks that happen in the future, the customer's trust is an important capital that should be well taken care of," he remarked.

During the event, Idris also informed that the OJK has continued to encourage the strengthening of the insurance industry's risk management in the past five years.

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Translator: Sanya Dinda S, Fadhli Ruhman
Editor: Rahmad Nasution
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