Jakarta Globe

Indonesia Insurers Call Quake 'Blessing in Disguise'

A national insurance group has decided to relocate this year’s annual promotional event from Jakarta to Padang in the wake of last month’s earthquake, which one industry representative called a “blessing in disguise.”

Announcing the move, Bona Pandiangan, the chairman of the Federation of Indonesian Insurance Associations, on Thursday said the event would promote the value of insurance in a country where only 1.78 percent of the general population had coverage.

“Insurance awareness is still low in Indonesia,” Bona said. “That’s why we are promoting the role of insurance to mitigate the impact of natural disasters, such as the recent Padang and Jambi quakes, through Insurance Day.”

The event scheduled for Sunday is intended to promote a range of insurance products, including vehicle, home and life insurance. It was originally to be held in Jakarta, but the federation changed the venue to Padangshortly after the 7.6-magnitude quake struck West Sumatra last month, killing more than 1,100 people and destroying more than 500 buildings.

“We’re also helping the relief effort by meeting customers who may have lost their insurance policies among the rubble, so we can speed up their payment claims,” Bona said.

Also on Thursday, Eveline Pietruschka, head of the Indonesian Association of Life Insurance Companies, also said the quake had a silver lining.

“It’s kind of a blessing in disguise,” Eveline said. “Our members have historically reported higher growth of policy holders in the period just after big natural disasters.”

However, Dr. Ridwan Gustiana, the founder of Bandung’s Ibu Foundation, struggled to see the bright side. He said the event’s timing was in poor taste, and the victims in Padang “need emotional support instead of insurance offers.”

“Meeting the life insurance companies will only remind them of death, and that’s not good. They will be re-traumatized,” he said.

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