Munich Re launched a microinsurance to risk of flooding

The high risk of flooding in Indonesia, the number of middle to lower economic people are great and the level of public insurance awareness is still low, making the company the market leader re-assuransi in Germany, Munich Re with local partners launched the Microinsurance products for the first flood risk in Asia the Southeast.

Based on data from the Economist Intelligence Unit, Indonesia is the fourth largest country in the world in terms of total population to population, after China, India and the United States.
The population in Indonesia is expected to grow to 243 million inhabitants in 2010, of 234.7 million inhabitants in 2007.

Data from the World Bank estimates that the level of consumption of about 49% of Indonesia's population is still below U.S. $ 2 per day.
Referring to these figures, Munich Re concluded that traditional insurance is still difficult to reach most households. Microinsurance can be an alternative solution in the fight against poverty and contribute to economic and social stability for the residents.

Currently only 3% of middle to lower economic community that has access to insurance products in the world of the 100 third world countries, Munich Re believes microinsurance will have a growing market segment. Munich Re believes that offering micro-insurance products for middle to lower economic people are not just become a corporate social responsibility, but it could be a strategic topic for the future, especially for those who are at risk to natural disasters.

Project in Indonesia

In the context of Indonesia, Munich Re believes, flooding that has occurred repeatedly, especially in Jakarta will be a threat that carries a variety of economic and social effects such as damaged buildings, loss of potential income, expenditure for higher medical costs, rising food prices are soaring, this could become a heavy burden for middle to lower economic community.

For the initial stage, this project will be tested on 23 sub-districts in Jakarta who has been selected.
Each household was given an opportunity to get protection from a variety of socio-economic impacts due to flooding. Participants will be given a card protection insurance that can be obtained with money Rp. 50 thousand and will get a replacement Rp. 250 thousand in the event of flooding, for example, if the water in Door Water Manggarai height above 950cm (screen 1).
Munich Re took Tata Vehicle Insurance as a local partner is responsible for marketing, distribution, sale of micro insurance products in the pilot areas of Jakarta.

Founded in 1964, Tata Vehicle Insurance is one of 10 top public insurance companies in Indonesia. Field that includes the insured property, marine, oil and gas, and the national motor insurance with 800 employees in more than 30 branch offices.