Microinsurance: Tug of War of Joint Product Launch

In March, the association said that joint micro insurance is ready for the market, it has been circulated in June, but as of July not one product has been circulated. According to the Chairman of AAJI, 

Hendrisman Rahim, the delay is because of many actuaries of various companies are formulating the product. The association has decided to propose
endowment insurance. In the other hand, AAUI was initially targeting that joint micro-insurance products will be launched within the first quarter of this year, but until now has not received permission from the authorities, the constrain was to the OJK regulation on micro insurance products which have not yet been completed.

According to AAUI Executive Director, Julian Noor, of the three products suggested only two products received positive response from the OJK, they are SME Fire Insurance and self accident insurance, while the products which still need to be followed up is a residential fire insurance.
 
In addition, the OJK also asked AAUI and AAJI to design a combined product that can be marketed by life insurance and general insurance, so the focus of each association to switch to the combined product. Chief Executive Supervisor of IKNB OJK, Firdaus Djaelani could not provide advise regarding when the regulation of micro insurance will be finished.
 
Micro insurance according to some insurance industry performers does not provide significant contribution to the acquisition of premium and corporate profits, but micro insurance bring substantial benefits to the people/ community who have difficulty to reach insurance lately. Bisnis Indonesia, 080714, p 23.