Indonesia:Reinsurer to review quake insurance tariffs

Catastrophe reinsurer Maipark says that it will conduct a review of earthquake tariffs, in the wake of the release of the latest compilation of earthquake data.

Maipark's President Director, Mr Yasril Y Rasyid, said that the review will look at the possibility of changes that can be made based on the newly released Indonesia Earthquake Source and Destruction Data 2017, which is an update on the 2010 Earthquake Map. The data was compiled by the National Earthquake Study Centre of the Ministry of Public Works and Public Housing.

Mr Yasril said that the latest data are expected to provide benefits to the insurance industry including Maipark, that would then be able to improve risk assessment, strengthen governance, invest in resilience, and improve disaster preparedness.

Maipark, formerly known as Indonesian Earthquake Reinsurance Pool, specialises in the reinsurance of catastrophe risks, such as earthquake, tsunami, volcanic eruption, and fires caused by these risks. It is owned by general insurance and reinsurance companies.

Separately, Sompo Insurance Indonesia says that based on its claims data for 2017, 4.1% of property claims arose from natural disasters, of which 1.1% were due to earthquakes and volcanic eruptions, and 3% due to storms and floods.

"Given Indonesia is in the ring of fire which is very vulnerable to earthquake risks, plus the increased risk of flooding, and recently of frequent cyclones, the need for natural disaster insurance for the people of Indonesia is of very high urgency," said Erixon Hutapea, Technical Director at Sompo Insurance Indonesia in a statement.