Impact of Tsunami on Insurance Industry www.kontan-online.com, 2005-01-10
After the tsunami and earthquake incident that happened in Aceh, there will be more insurance companies that offer earthquake clause in their loss insurance products. In Indonesia, there is actually already an insurance company that specifically covers earthquake insurance. PT Maipark, which has been operating in Indonesian since 2000, has been offering their earthquake loss insurance since then. In 2003, the company formed the earthquake reassurance pool. In 2004, the company managed to collect Rp.40 billion as the pool’s initial capital. After the pool was officially established, all insurance companies selling earthquake policy in the Jabotabek and West Java area are obliged to submit 10 percent of their income to Maipark. Companies outside West Java must pay 50 percent.
Aceh is Maipark’s first project. The company covered Rp. 36 billion worth of damage.