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Vaccine card is a condition of travel, travel insurance performance has the potential to increase

Vaccine card is a condition of travel, travel insurance performance has the potential to increase

JAKARTA. The increasingly soaring Covid-19 pandemic affects various sectors, including tourism. This also gives uncertainty to the fate of travel insurance in 2022.

As a result, the travel insurance business declined significantly during the pandemic. In fact, implementing the policy of Imposing Restrictions on Emergency Community Activities has also burdened this line of business.

Recently, the government began to enforce a COVID-19 vaccine certificate as a condition for long-distance travel within the country. The use of this application is applied to all modes of transportation as one of the conditions for transportation travel, both in the land, sea, air, and rail modes.

One of the insurance players, Simas Insurtech, also hopes that this easing is the beginning of the recovery of the transportation industry, especially related to tourism. As a result, there will be a movement to return the travel insurance business to its original condition.

Read More: The government requires the third Vaccine as a condition of travel

"If we can maintain this policy and the number of new cases continues to decline, then by the end of the year, travel insurance will start to increase again even though it has not recovered 100% like normal conditions before the pandemic," said Simas Insurtech President Director Teguh Aria Djana.

Simas Insurtech revised the travel insurance premium target from IDR 75 billion to IDR 40 billion in early 2021. Until June 2021, Simas Insurtech only pocketed a premium of IDR 15 billion.

In fact, this line of business had shown an increase in the second quarter of 2021. However, due to the policy of the Implementation of Restrictions on Community Activities, the performance of Simas Insurtech was also affected.

"The premium income from this sector may not be too high, but we will continue to monitor its development," said Teguh.

Teguh said that if he could pass 2021 without turmoil, then in 2022, he is optimistic that tourism and transportation will support travel insurance premiums many times over from now.

In encouraging the travel insurance business, the company also plans to collaborate with more partners such as online ticket companies and marketplaces. In addition, complete travel insurance products with Covid-19 risk guarantees.

Read more: Mass Moment of Anti-Covid-19 Vaccine Mandatory in Indonesia,

The Indonesian General Insurance Association (AAUI) also stated that travel insurance has not yet recovered because the COVID-19 pandemic has impacted decreasing travel frequency, so the need for travel insurance has also been reduced. Nevertheless, he is optimistic that the performance of travel insurance will start to improve with the implementation of a COVID-19 vaccine certificate as a travel requirement.

"AAUI is also optimistic that the general insurance industry will grow in 2021 but has not been able to make quantitative estimates because the parameters are still volatile. Our hope is at least the same as conditions before the COVID-19 pandemic," said AAUI Executive Director Dody AS Dalimunthe.

Dody said to overcome the potential decline in insurance premiums, insurance companies began to develop other business lines that are more attractive and follow the risk needs of the community. In its implementation, it also applies digital technology to be easily accessed by the public.