Innovation

Asuransi Jasindo runs an actuarial program in collaboration with government/regulator (OJK), academics (UGM) and actuarial professionals (PAI) to help supplying actuaries the country need.

The program will allow Asuransi Jasindo to maintain the sustainability of its supply chain in labor (actuaries). The insurance industry will also benefit from the program because they can recruit actuaries to comply with a regulation more easily. Furthermore, the availability of a sufficient number of actuaries in Indonesia will help the country to have a more healthy insurance/reinsurance industry, which can grow in a sustainable and stable manner and capable of protecting the interests of consumers and the society.

Inspiration

In the year 2012, The Ministry of Finance of Republic of Indonesia enacted Finance Minister Regulation or Peraturan Menteri Keuangan (PMK) No. 53/2012 concerning The Financial Healthiness of Insurance Companies and Reinsurance Companies as an effort to protect the interests of consumers and the society.

In article 17 of the regulation, it is stated that “The assessment on Liability in the form of technical reserve as referred to in Article 16 paragraph (1) must be made by the Company’s actuary”. Hence it can be inferred that each and every insurance company must have its own actuary(ies).

Unfortunately for the insurance industry, Indonesia is in shortage of actuaries. Currently, Indonesia needs, in minimum, 1.000 actuaries while there are only about 400 actuaries in Indonesia and not all of them are working in insurance industry. Hence, OJK set a goal to produce 1.000 actuaries as soon as possible.

However, it is hard for OJK to achieve that goal, because there was no university in Indonesia offering actuarial program. The closest discipline in curriculum available is mathematics and statistics program. Hence, OJK approached top universities in Indonesia to open actuarial program, among them are Universitas Indonesia (UI), Institut Teknologi Bandung (ITB), Universitas Gadjah Mada (UGM), Institut Teknologi Surabaya (ITS) and Institut Pertanian Bogor (IPB).

Whereas Asuransi Jasindo already has its own actuaries to comply with the regulation, it is aware that it needs to maintain the sustainability of its supply chain in labor for actuaries. Hence, it runs actuarial program in collaboration with government/regulator (OJK), academics (UGM) and actuarial professionals (PAI).

Overall impact

The program is directly supporting the OJK’s target to produce 1.000 actuaries which is urgently needed by Indonesia.

OJK sets that target in order to run its missions which, according to www.ojk.go.id, OJK is established in a bid to ensure that the overall activities within the financial services sector are:

1. implemented in an organized, fair, transparent and accountable manner;

2. able to realize the financial system that grows in a sustainable and stable manner; and

3. capable of protecting the interests of consumers and the society.

The program is also supporting the UN Global Goals number 4, especially for the target of : “By 2030, substantially increase the number of youth and adults who have relevant skills, including technical and vocational skills, for employment, decent jobs and entrepreneurship”.

Business benefit

Not only does Asuransi Jasindo enjoy the publicity as the media covered the story, but it also be able to maintain the sustainability of its supply chain in labor (actuaries).

Should the program be successful and OJK able to achieve its target in producing 1,000 actuaries in due time, then, not only Asuransi Jasindo will be able to recruit actuaries more easily, but also more cheaply without fear of its own actuaries being hijacked by competitors, because the law of supply and demand will surely take effect.

Social and environmental benefit

Obviously, the program will benefit the insurance industry most, especially in complying with the regulation. However, if we look at the reason why the government implement the regulation at the first place, then we will see that the government intend to realize a financial system that grows in a sustainable and stable manner and capable of protecting the interests of consumers and the society. This program is a support for the government to reach that intention.

Interview

Mr. Ridwan Harris, Kasubdiv Pengembangan Karyawan (Head of Employees Development Sub Division) in Divisi Sumber Daya Manusia (Human Resources Divis