OJK promises balance in insurtech and consumer protection

Indonesia has a growing adoption of digital tech in the insurance industry.

Indonesia’s Financial Service Authority (OJK) promised to seek balance between the growth of insurtech and consumer protection amidst the rise of digital adoption in the insurance industry.

Speaking at the ‘The Post-Covid Revival of the Insurance Industry’ press conference, OJK head of the nonbank financial institution supervision department, Ahmad Nasrullah, said that Indonesia’s high internet penetration rate offers multiple opportunities for insurers.

“We anticipate there will be a boom in information technology adoption within the insurance industry after the pandemic,” Nasrullah said.

In preparation, OJK said it has been looking to accelerate the insurance industry’s digital transformation under its 2021 to 2025 master plan. Their policies include strengthening tech-based supervision and consumer protection.

The regulatory body aims to pursue the balance between growth and consumer protection when regulating insurtech.

Recent data showed that 73.7% of the population in Indonesia are internet users with around 96.4% using their smartphones to surf the web.