According to the minister, the massive development of digital technology is a challenge for the insurance sector.
"This condition pushes the insurance industry to develop towards the digitalization of business process," Hartarto remarked while delivering his remarks virtually at the Indonesia Re International Conference (IIC) 2024 on Thursday, based on a statement from his ministry.
Digital transformation in the insurance sector is supported by artificial intelligence, machine learning, predictive analytics, cellular services, and live chat that enable insurance companies to develop their businesses sustainably.
He noted that overall, despite existing challenges, such as infrastructure gaps and cybersecurity issues, the insurance industry in Indonesia is still ready to face significant digital transformation.
"This transformation is expected to improve operational efficiency, expand market reach, increase customer satisfaction in the coming years, and can also potentially increase the insurance industry's contribution to Indonesia's GDP," he remarked.
Hartarto underscored that the insurance sector is already one of the main contributors to GDP and has optimal potential.
This has been reflected by the insurance industry's performance, which is continuing to increase in line with the national economic growth.
By mobilizing domestic savings, insurance enables loss reduction, enhances financial stability, and promotes trade activities. Thus, insurance plays an important role in realizing sustainable economic growth.
In achieving the 2045 Golden Indonesia vision, economic transformation is one of the essential steps that the government must take to boost inclusive and sustainable economic growth.
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Translator: Bayu Saputra, Raka Adji
Editor: Azis Kurmala
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