Health Information Center – CedrikaProvencher

National capital markets industry was hit by part of the global financial crisis marked longsornya stock price index. Industry financing or “multifinance” also suffered from rising interest rates and high “yield” bonds that make loans decreased demand and increased bad debts.

The banking industry had the same fate. The current tight liquidity making interbank loan transactions so that the drag experienced credit contraction drastically. In short, the financial industry prone because of the crisis centered in the United States.

How the insurance industry? Since also the financial institutions associated with capital markets and banking, as well as problems of liquidity and exchange rates, the insurance industry was unable to escape his life. Just look at the case of the largest U.S. insurance company, AIG, the collapse and then injection of funds by the U.S. Government. The value of investments in unit-linked products (insurance linked to investment) are also falling, although only just remember horizonnya potential long-term investment.

In contrast to other financial institutions solely a catastrophe if a crisis occurs, the insurance industry can actually get “blessings” of the crisis. This is because the insurance business is a business risk and protection.

Chairman of Indonesian Life Insurance Association Pietruschka Evelina said, in a situation like the current uncertainty, the performance of the insurance industry even more dynamic. Not only public awareness of insurance increases, but also the role of insurance in the rescue and pushed the economy also became dominant.

Now many people worried about the uncertainty of economic conditions in the coming years, one of them is the possibility of weakening economic growth usually leads to a reduction of employees at many companies. For people who have never insurance to cover the cost of health care and education, the future will certainly not clear. If the corresponding loss of jobs, would have been difficult to fund all of that considering there was no regular income. However, for those who have insurance, can be a little calmer because there is insurance coverage. At least, he can think more calmly in the search for a new job. Corporations are stopped due to breakdown of project financing from banks also do not have to worry if you’ve closed it with the insurance risk.

Not to mention the impact of deteriorating economic conditions of increasing social unrest like the riots that could cause damage to property, such as buildings and motor vehicles. In the midst of these concerns, people will rely on insurance to protect their properties.

No significant

Apart from a crisis situation or not, the insurance industry will certainly make life a person becomes more peaceful, stable, and prosperous. With insurance, it means someone has to protect his life and planning far ahead, even until his retirement later. By doing child protection to education, life, health, and others, means a person has completed at least the obligation decades into the future at this time. There need be no excessive worry and fear about the future.

Evelina said, whatever the crisis, ranging from social, economic, to climate change, has always been the insurance industry momentum for growth and a greater role in the economy and public life.

According to the Chairman of the Federation of Indonesian Insurance Associations (FAPI) Mira Sih’hati, the financial performance of the domestic insurance was too distracted by the global financial crisis today. Losses due to the placement of investments in global financial firm that went bankrupt was not significant. That’s one of them because the insurance company’s investment in Indonesia is very limited, a maximum 20 per cent placement abroad.

Chairman of the Indonesian General Insurance Association Kornelius Simanjuntak said, although the claim payments increased during the crisis given the insurance should cover losses suffered by the corporation, if viewed in a broader horizon, there are potential benefits behind it all.

During the well-managed insurance, in the sense of risk analysis and the ability of capital to be the main consideration in the risk of closing, payment of any claims will not financial shake insurance because, in principle, the potential claim has been reserved.

On the other hand, it claims payment and will make the community aware of the importance of insurance corporations in the face of adversity. This course will increase awareness broadly to an insurance company that the premium income will increase.

In addition, the crisis would confirm the existence of an important role of insurance in economic development. Payment of claims will help companies that lose from bankruptcy so the company can still operate. Ends, the economy continues to increase.

Thus, a crisis will help change the paradigm of people who have only seen the role of insurance as a source of long-term financing. The more important fact is the role of insurance claim payments, which protect and promote real economic growth. Imagine there is one company affected by the disaster because the factory burned. In calculations, the company is likely to go bankrupt. If bankruptcy, auto workers will lose their jobs, their lives can suffer. Will be many children who could not attend school. Burning plant to be rebuilt with the payment of the claim that no employee stops working. All this would not happen if there is insurance.

As an illustration, during the year 2008, general insurance has paid the claim Rp 8.05 trillion. This amount is equivalent to the construction of infrastructure projects, such as ports, toll roads, and power plants.

Main priority

Claim payments related to the importance for the economy, insurance companies should also put this as the most important, the main priority in his business. The problem this time, instead of public uncertainty with repayments that claim to be one factor was the fast growing insurance in this country. Insurance claims payment process in Indonesia is still often slow and tortuous. Customers get upset. The impact, although it has operated for many years, the contribution of the insurance industry in 2007 of gross domestic product is only 1.8 percent. Payment of claims quickly and accurately would be increasingly enhance public trust in insurance.

Back to the issue of crisis, the role of insurance that is not less great is the provision of employment. Employees who lose their jobs because of the crisis can rely on insurance with an agent. In the next five years, the insurance industry was determined to recruit 500,000 insurance agents. This will reduce the number of unemployment in Indonesia, which has now reached 9.43 million people from productive employment total of 111 million people.

Commitment

To optimize the role and benefits of insurance in the current crisis situation and the future, all relevant stakeholders, from regulators, insurance companies and derivatives, to the community, of shared commitment to develop this industry.

According to Mira Sih’hati, at least there are three things that could encourage the growth of the insurance industry.

First, the government’s political will to create a climate conducive and exciting for people to want to put their funds through insurance premiums in a variety of insurance programs.

Second, community participation, especially the academic community. During this public insurance awareness is very low. This is due to ignorance since the insurance industry was not introduced in school. Therefore, the insurance industry is hoping the insurance can be a part of the educational curriculum. “Line of formal school education is the most powerful,” said Mira.

Third, innovation and professionalism of the insurance industry itself. “How do they fix to the industry. Yes its services, products yes, yes human resources, and so on, “he said.

In conclusion, the insurance industry must show himself truly can become “gods helper” of any crisis that occurs with the payment of claims which the insured is smooth and satisfying. If insurance is dependable, growth prospects and high premiums automatically come.

What actually happens in the health services in the United States so that this becomes a crucial issue for the government of President Barack Obama, although this issue seems a domestic issue?

Unlike developed countries who provide comprehensive health insurance for its citizens, health care costs in the U.S., such as the cost of doctors and hospitals, exorbitant height. For example, heart bypass surgery in Canada may cost “only” 10,373 U.S. dollars or approximately USD 103.73 million, while U.S. patients pay 20,673 U.S. dollars USD 206.73 million, 83 percent more expensive than the cost in Canada.

The cost of doctors in the U.S. is higher than 2.4 times in Canada. For one thing, consumers doctors in Canada is only one, namely the Government of Canada that ensures the health costs with broad coverage. While U.S. consumers in a variety of doctors so that they can also determine the price range too. If residents can not afford to pay his hospital bills, U.S. law may declare a person bankrupt. Half of U.S. bankruptcies are cases of people unable to pay medical bills.

Ideally, if the government does not provide affordable health services, residents can be covered by health insurance purchase. Most Americans get health insurance from a company that hired him, including for spouses and children (84.7 percent). Only 9 percent are able to reached into his pocket to buy individual health insurance. Government health insurance covers 27.8 per cent or 83 million people to the elderly, disabled, veterans, and the poor.

The rest, about 45 million people have no health insurance. They are not able to buy an insurance policy is getting more expensive faster than salary increases and inflation. Companies are increasingly reducing their liability to pay employee health insurance premiums. Employees to bear the burden of insurance costs higher.

Very expensive

The high cost of health care in the U.S. due to several things, including prescription drugs and technology. Administration of drugs that must be obtained by prescription and most sophisticated medical technology known as a major contributor to rising health care. U.S. is a major player drug innovation and cost three times more than European countries in terms of biomedical research. Most of the funds obtained from the Department of Health and Human Services.

In addition, the order in the U.S. health system has also changed dramatically in the last century because people can live longer and the prevalence of chronic disease. This caused the demand for health services increases, particularly for old diseases cured and the long-term health services like nursing homes. Request a chronic disease services occupy 75 percent of the total cost of national health sector. In 2007, the U.S. spent 2.26 trillion U.S. dollars for the health sector. The amount is equivalent to the cost of 7439 U.S. dollars per capita or USD 74.4 million per person.

Health costs are also increasing along with the aging of baby boomers are now middle-aged. This trend will increase if the baby boomers had to qualify to get Medicare government service in 2011.