Kathmandu. The country’s financial sector regulator, the Financial Services Authority (OGK), has officially endorsed Indonesia’s move to make travel insurance mandatory for foreign tourists. <\/p>\n
The authority believes that this step will ensure greater safety for tourists as well as manage health risks. In addition, the move is expected to create new markets, investment and innovation opportunities in Indonesia’s insurance industry. <\/p>\n
In a recent written statement, the head of the Authority’s Insurance, Guarantee and Pension Fund Oversight Board, Ogie Prostominu, said, “Making travel insurance compulsory for foreign tourists will provide them with effective protection against any potential risks while traveling.” This insurance coverage will play an important role in reducing the financial stress of the tourist and ensuring the necessary support in case of an accident, sudden health emergency or unexpected cancellation of the trip. \u2019<\/p>\n
However, the authority has made it clear that the proposal is still in the review stage and needs to be evaluated in depth some important issues before implementing the policy. “The preparation of the ecosystem i.e. the integrated capacity and implementation mechanism of the insurance sector, tourism sector, health care and immigration systems and the safety of tourists and consumers should be taken into account. “More studies are needed for the implementation of this policy so that the shortcomings in the preparation and process can be identified and addressed quickly, and it is possible to ensure consumer safety,” the authority said. \u2019<\/p>\n
According to analysts, a large number of foreign tourists enter Indonesia’s tourism industry every year. As a result, the need for a reliable financial security framework to handle health risks, accidents, or medical emergencies is becoming more evident by the day. <\/p>\n
If the tourist’s major medical expenses or emergency transportation costs such as hospitalization, surgery or special services are covered by insurance, it is easier to get services faster during a crisis and can reduce further pressure on the local healthcare system. At the same time, such mandatory coverage could help bolster Indonesia’s image as a “safe destination” for tourism. <\/p>\n
In the assessment of the authority, the implementation of this policy will also open the door to huge possibilities for the Indonesian insurance industry. Short-term and customized policies to meet the needs of international tourists will include benefits such as emergency medical treatment, accidents, trip cancellations, loss of baggage or flight delays. This will increase the opportunity to innovate. <\/p>\n
The demand for tourism-related insurance products will also increase competition for insurance companies, digital services, faster claims settlement systems, and international support networks. Which can ultimately be beneficial for both consumers and tourists. <\/p>\n
However, if the policy is implemented, then the minimum coverage criteria, rationalization of premiums, how easy the process of buying insurance will be and how quickly tourists will get help in case of emergencies will also be part of the policy framework. It will be especially important that it does not become a mere formality. Rather, in reality, tourists benefit and there is no ambiguity or additional pain. The security of tourist information and the accountability of insurance service providers are also key considerations here. <\/p>\n
According to the authority, if implemented, Indonesia could become a more organized, modern and responsible destination for tourist protection. At the same time, it can also create a new sub-sector of economic growth by bringing new momentum to the national insurance industry. Now the stakeholders of the tourism and financial sector are watching to see how the policy is finalized, under what conditions it will be made mandatory for foreign tourists and how much efficiency and transparency can be ensured in its implementation. \u2013 Asia Insurance Review<\/p>\n","protected":false},"excerpt":{"rendered":"
Kathmandu. The country’s financial sector regulator, the Financial Services Authority (OGK), has officially endorsed Indonesia’s move to make travel insurance mandatory for foreign tourists. The authority believes that this step will ensure greater safety for tourists as well as manage health risks. In addition, the move is expected to create new markets, investment and innovation […]<\/p>\n","protected":false},"author":16,"featured_media":259211,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[45044,45159],"tags":[],"class_list":["post-282387","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-international-news-en","category-news-en"],"acf":[],"_links":{"self":[{"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/posts\/282387","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/users\/16"}],"replies":[{"embeddable":true,"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/comments?post=282387"}],"version-history":[{"count":1,"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/posts\/282387\/revisions"}],"predecessor-version":[{"id":282388,"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/posts\/282387\/revisions\/282388"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/media\/259211"}],"wp:attachment":[{"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/media?parent=282387"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/categories?post=282387"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/tags?post=282387"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}