Reinsurers are preparing strategies to maintain liquidity as they are expecting a greater impact from the COVID-19 pandemic which has already slowed down reinsurance business.
Tugu Reasuransi Indonesia (Tugure) has recorded a decline in premium income as of June 2020, although not significantly. Its president director Adi Pramana said that the company is working on various strategies to keep the business growing, according to a report by Kontan.co.id.
“We are still trying to grow…we are currently having a lot of discussions with insurance companies regarding opportunities,” he said.
In addition, the company focuses on liquidity, especially by increasing the proportion of dollar-denominated assets.
Separately, Reasurance Indonesia Utama or Indonesia Re recorded a 1% growth in premium to IDR3.27tn ($224m) for the six months to June 2020, compared to the corresponding period in 2019.
Its president director Mr Kocu Andre Hutagalung said that COVID-19 has had an impact on the company’s business because of factors like exchange rate fluctuations, declining premiums and rising claims. “We will go back to basics, which is to strengthen underwriting and cost efficiency,” he said.
“We will also pay attention to classes with potential moral hazard due to COVID-19,” he said.
Maskapai Reasuransi Indonesia (Marein) is focussing on managing the company’s cash flow and increasing the use of information technology to support the company’s operational efficiency and to maintain service levels for clients.