One of the implications of the entry of digital technology in the insurance industry in Indonesia is an improvement of services provided to customers or insured parties. One of the services awaited by the industry players is the electronic insurance policy (e-policy). Are there any insurance companies that have already implemented the e-policy today? How is the legal issue of the e-policy as the Financial Services Authority (OJK) has yet to issue regulation on the matter? How will claim service be executed when the e-policy becomes a reality?
The insurance policy as an agreement between the insurer and the insured party or a customer appears to be inevitably adjusted with the entry of digital technology into the insurance industry. Electronic policy (e-policy) is being eagerly awaited by both insurance companies and customers. However, it appears that industry players still need to wait before the e-policy becomes a reality in Indonesia’s insurance industry.
According to the Chief Executive for Supervisory of the Non-Banking Finance Industry at the Financial Services Authority (OJK) Riswinandi, currently there is no regulation specifically governing the implementation of insurance product based on information technology. “We also understand the need for some specific rules that will govern this digital insurance. The rules concerning the marketing of this (technology-based) insurance are being regulated by OJK regulation number 23 of 2015 concerning insurance products and marketing of insurance products, which regulates the provisions of the insurance policy that can be issued in digital or electronic form. However, the regulation still needs to be further deepened,” he said.
Providing a faster, easier and safer services in insurance business activities to the insured parties or customers seems to have been implemented by some insurance companies through the issuance of e-policy. However, it is not yet a 100-percent e-policy, which is fully digitalized. As usually happens, as for regulation and business activities, business activities usually develop faster than the regulations. The reason is because insurance executives always try to assure their business runs smoothly in serving the customers or the insured parties.
According to Marketing Director of PT Asuransi Sinar Mas Dumasi MM Samosir, since 2008, ASM has started to introduce e-partner and implement the e-policy. “The response of our customers has also been positive, especially the corporates because e-filling system saves place. Therefore, customers gain the benefits and can print it if needed,” she told Wahyu Widiastuti from Media Asuransi. She revealed that a customer in a remote area has also been able to accept the change, because they consider the e-policy is much more practical and efficient. If the customer wants to see the validity of the policy, he or she can check it on the system.
The development of this digital technology, according to Dumasi, can not be avoided anymore, because it will be more convenient for customers as well as more efficient and cost-effective for the insurance companies. “However, more importantly, the regulations related to digital-based products are adjusted so that the insurance companies would not wrongly implement it (e-policy),” he said.
According to President Director of PT Asuransi Astra Rudy Chan, as for the company’s product Garda Oto Digital, the company has issued a digital insurance policy, however, in order to safeguard its legality, the company still sends out the printed insurance policy. “Although it is digital-based, the process to buy an insurance policy should still be preceded by vehicle surveys and that is the time customers meet with our personnels. Meeting directly with the company’s personnels allows customers to feel secured and comfortable in choosing us as their driving partner,” he told Wahyu Widiastuti from Media Asuransi recently.
Meanwhile, President Director of PT Asuransi Jiwa Tugu Mandiri Donny J. Subakti revealed that specifically for the company’s product TM Power Link, the company prepares an e-policy as an alternative of policy ownership. However, if a policyholder wants a copy of the policy, it can be printed. “Each e-policy is issued with specific identity and registered safely. This is also a form of easing service for customers,” he told Media Asuransi recently.
Donny Subakti said that in principle e-policy prepared for a customer does not replace the printed policy, instead it is treated as a complement of the print policy. “The purpose of an e-policy is an alternative way to get the policy. The hope is that the e-policy will help customers in documenting or filing the insurance policy because e-policy is stored in digital form. If required, the customer can also request a printed insurance policy to the company,” he said. He continued that with regard to the maintenance of the policy and insurance claim processing, the e-policy will make the claim process more convenient as long as the e-policy number corresponds with e-policy number documented by company.
It is not only domestic insurance companies that are interested in implementing the e-policy in the Indonesian insurance industry. Joint venture insurance companies have also stated their views about the e-policy. For example, the Executive Officer of Retail Marketing of PT Sompo Insurance Indonesia Ratna Indrayani revealed that Sompo Insurance Indonesia still complies with the OJK rules. “The fact thatcustomers must hold the summary of the policy in the form of hardcopy, so that the e-policy issued by the company and its legality is not different from the hardcopy of the insurance policy received by the insured party. Every e-policy that the company sends to customers is registered on the company’s system,” he told S. Edi Santosa from Media Asuransi. Therefore, she added, customers can make claims without having to carry a hardcopy policy from wherever they are.
The insurance policy as an agreement between the insurer and the insured party or customer was originally printed in hardcopy. However,with the progress of digital technology, insurance policy now can be transformed into e-policy. The problem is that the e-policy which is easier, more convenient and efficient to be accessed from anywhere, remains considered as an illegitimate agreement, because the regulation issued by the regulator has yet to legalize it. Therefore, insurance companies still provides hardcopy policy to their customers, in accordance with the prevailing regulations. However, on the operational level, some insurance companies have started using the e-policy to serve the insured party although they still have to issue an insurance policy in the hard-copy form. Apparently, the industry is still waiting for the e-policy to become a reality as a valid agreement between an insurance company and the insured party, in accordance with the regulations. ***