Liga Asuransi – The Indonesian insurance industry has experienced significant development to date, driven by economic growth and awareness of the importance of insurance protection. Steady economic growth, urbanization and increasing public awareness of risk have driven demand for insurance products. However, this industry is also faced with various challenges.
One of the main opportunities in the insurance industry is increasing insurance penetration in market segments that are still underinsured, such as micro, small and medium enterprises (MSMEs), as well as the agricultural and property sectors. Apart from that, changes in consumer behavior who are more inclined to rely on technology also open up new opportunities for insurance companies to develop innovative digital products and services.
However, the challenges facing the insurance industry are not small. Among these is increasing competition in the market, both from traditional insurance companies and new players, as well as pressure to provide products and services that are more affordable and in line with consumer needs. Apart from that, strict regulations and changes in the legal environment are also important factors that this industry needs to face.
In this context, the role of industryinsurance brokerbecoming increasingly important.Insurance broker serves as an intermediary between clients and insurance companies, providing in-depth knowledge of the market and assisting clients in selecting products that suit their needs. With extensive experience and networks, insurance brokers are able to provide the best and sustainable solutions for their clients.
The insurance broker industry in Indonesia has experienced significant growth in recent years. With more than 160 insurance brokerage companies and 40 reinsurance brokerage companies operating today, the insurance brokerage market is growing and offers a variety of choices for consumers.
The main challenge faced by the insurance brokerage industry is increasing competition in the market. With the increasing number of brokers, competition is becoming fiercer, encouraging brokers to continue to improve service quality and product innovation to retain and attract new clients. Apart from that, changing regulations and a dynamic business environment also pose challenges for insurance brokers.
However, amidst these challenges, there are also great opportunities for the insurance brokerage industry. Stable economic growth and increasing public awareness of the importance of insurance protection are supporting factors for market growth. Apart from that, technological advances also open up new opportunities for insurance brokers to develop digital services that are more efficient and easily accessible to consumers.
One of the main challenges in the insurance brokerage industry is the strict supervision ofFinancial Services Authority (OJK). Although aimed at protecting consumer interests and maintaining market stability, strict regulations can also be a burden for brokers in terms of compliance and operational costs. However, this strict supervision also provides consumers with confidence and assurance that insurance brokers operating in Indonesia adhere to high standards of professionalism and ethics.
Overall, the insurance brokerage industry in Indonesia has great growth potential, but is also faced with challenges and obstacles that need to be overcome with the right strategy. With superior service quality, product innovation, and compliance with strict regulations, insurance brokers can continue to grow and provide greater benefits to consumers and the insurance industry as a whole.
In 2023, the portion of insurance broker transactions from all general insurance transactions in Indonesia will only reach around 23%, a figure that is still relatively low. However, the management of APPARINDO for the 2022-2025 period (Association of Indonesian Reinsurance Broker Companies) is not afraid to be faced with this fact. They carry a passionate motto: “We Want More Share!”
This motto reflects a strong determination to take a bigger share in the Indonesian insurance market. With an impassioned spirit, insurance brokers are ready to face challenges and change the industry paradigm. They are committed to continuing to innovate, improve service quality, and expand market reach in order to reach a larger market share.
As a driving force in the industry, APPARINDO is determined to be a pioneer in changing the Indonesian insurance panorama. With the spirit of “We Want More Share!”, they are ready to make new achievements and take over a larger market share, providing greater benefits for consumers and the insurance industry as a whole.
As a strategic step to realize the mission “We Want More Share!”, APPARINDO prioritizes increasing the professionalism of its members. This is done through the implementation of structured training and education programs, which are held in collaboration with APARI (Association of Indonesian Reinsurance Insurance Broker Experts).
Through educational programs organized by APARI, members can access the latest knowledge and best practices in the insurance industry. This program is designed to strengthen the skills and knowledge of insurance brokers, so they can provide more professional and quality services to their clients.
One important step in increasing professionalism is to obtain certification from the Professional Certification Institute (LSP), especially LSPPI (Indonesian Insurance Professional Certification Institute). LSPPI was founded by APPARINDO and APARI as a forum to accredit and provide certification to insurance and reinsurance broker experts.
This is also in line with Financial Services Authority Regulation (POJK) Number 68 of 2016 which requires Competency Certification for Insurance Brokers, Directors and Experts for Insurance Business Support Companies, especially Insurance Broker Companies and Reinsurance Companies for qualification levels 5, 6 and 7 as well as for Directors, Experts and Main Insurance Loss Appraisers at Loss Appraisal Companies for qualification levels 6 and 7.
The Indonesian Insurance Professional Certification Institute (LSPPI) was established on May 8 2014 with a strong legal presence, located in Grha APPARINDO, Central Jakarta. On February 1 2023, LSPPI transformed intoPT. LSP Indonesian Insurance in accordance with BNSP Guidelines no. 201 of 2014. Vision of PT. LSPPI is a strategic partner of the insurance industry, while its mission includes implementing competency standards, an appropriate certification system, as well as encouraging an objective climate and Good Corporate Governance compliance.
LSPPI’s commitment to the provisions of POJK Number 11/POJK.07/2021 emphasizes that the Management/Directors are not involved in the Financial Services Industry (IJK), while the Commissioners continue to comply with applicable regulations.
In terms of certification achievements, LSPPI has issued 2,490 competency certifications in the field of insurance and reinsurance brokers in accordance with the KKNI level 5, 6 and 7 certification scheme. This includes 991 Level 5 Insurance Broker competency certificates, 788 Level 6 (Directors) and 788 Level 7 (Experts) as many as 711.
Graduates and expert degree holders from APARI have the opportunity to take part in the strict certification process by LSPPI. This certification is recognition of their competence and professionalism in the insurance industry. Thus, certification from LSPPI is not only proof of credibility, but also increases consumer reputation and trust in the brokers concerned.
With this approach, APPARINDO is committed to building a high-quality and competent workforce, which can meet increasingly complex market demands and increasingly fierce competition. By increasing the professionalism of its members, APPARINDO is confident that it can reach a larger market share and make new achievements in the Indonesian insurance industry.
In order to welcome its 10th anniversary in 2024, the Indonesian Insurance Professional Certification Institute (LSPPI) celebrates a journey that is full of challenges but also full of achievements. Since its inception, LSPPI has faced various challenges including management aspects, creating competency schemes, financial problems, and adapting to the Financial Services Authority (OJK) program.
However, with strong determination and dedication, LSPPI succeeded in overcoming these various obstacles. Through collaborative efforts from all members and stakeholders, LSPPI succeeded in resolving management problems and improving the financial system to maintain operational sustainability. Creating a competency scheme that is in line with industry standards and adapting it to the OJK program is an important milestone in increasing LSPPI’s credibility in the eyes of the insurance industry.
Now, after a winding journey, LSPPI has emerged as a certification body that is increasingly ready to face future challenges. With a strong foundation and valuable experience, LSPPI is ready to continue to develop and expand its contribution in improving the professionalism and quality of human resources in the insurance industry.
With our commitment to professionalism, quality and superior service, PT. Indonesian Insurance LSP is ready to become a trusted partner in supporting the development of a quality and international standard insurance industry workforce. Contact us for more information about our services and certification programs.
Since the presence of the Indonesian Insurance Professional Certification Institute (LSPPI), there has been a significant increase in quality in the practices of insurance broker companies. They are now more focused on marketing strategies that prioritize providing risk analysis consultations to clients, explaining insurance guarantees that suit their needs, designing appropriate insurance programs, and assisting in selecting the appropriate insurance company. In addition, insurance brokers are also involved in profitable premium negotiations and help settle claims efficiently.
This provides real added value for the insured, because they can see that the insurance broker provides a more comprehensive and quality service than through an agent or dealing directly with the insurance company. With a more focused approach to client needs and interests, insurance brokers become trustworthy partners in ensuring optimal protection.
With around 2,500 Indonesian insurance broker industry players who currently hold certificates from LSPPI and will continue to grow, there can be no doubt that the level of satisfaction and ability of the insurance broker industry to embrace a wider market is increasingly wide open. With ever-increasing professionalism and quality, insurance brokers are ready to meet the demands of an increasingly complex market and expand their contribution to the insurance industry as a whole.
Thus, the existence of LSPPI has provided a positive impetus for the development of the insurance brokerage industry in Indonesia, creating a more professional and quality environment to serve the insurance protection needs of the community.
Over time, the Indonesian Insurance Professional Certification Institute (LSPPI) has demonstrated a strong commitment to increasing the professionalism of the insurance industry in Indonesia. With the transformation into PT. Indonesian Insurance LSP, LSPPI, is increasingly strengthening its position as a strategic partner for the insurance industry in creating a professional and quality workforce.
In its 10th year, LSPPI has faced various challenges and succeeded in overcoming these obstacles with courage and persistence. With a strong management structure and commitment to regulatory compliance, LSPPI has proven its dedication to creating an objective and professional climate in the insurance industry.
The significant certification achievement, reaching 2,490 competency certifications at various levels, is clear evidence of LSPPI’s contribution in improving the quality of the insurance industry workforce.
Happy 10th birthday to LSPPI! Hopefully LSPPI will continue to progress and make a greater contribution to the development of the insurance industry in Indonesia. With passionate enthusiasm, let’s welcome a future full of hope and achievement with LSPPI.
This article is brought to you by Insurance Broker L&G Insurance Broker.
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