The regulator noted that balanced risk-sharing with domestic reinsurers is vital to maintaining stability and supporting sustainable growth in Indonesia’s insurance industry.
The talks also cover potential funding mechanisms for the scheme, including the use of disaster relief funds or small deductions on utility bills, according to a government official cited by Reuters.
Australia’s per capita losses from extreme weather remain among the world’s highest, prompting the ICA to renew calls for tax, planning, and disaster funding reforms.
The regulator is sharpening its focus on affordability and long-term resilience as insurers face mounting cost pressures from natural disasters, inflation, and limited reinsurance capacity.