For the future, Bosowa Asuransi insurance is eyeing the micro insurance sector with plans to enter the segment over the medium term. Currently, the company is actively surveying the market in collaboration with key international finance organisations to establish the specific role that micro insurance products can play in supporting sustainable development in Indonesia.

Indonesia’s microfinance sector is one of the largest worldwide with more than 70,000 microfinance institutions and has been undergoing rapid expansion in the past few years with some 500,000 active borrowers in 2011 and $10.1 billion USD in total loans. This is serving to educate the market on financial principals and raise awareness of the need as well as availability of insurance protection for low income individuals, families and small businesses. Together, micro insurance and microfinance can play a significant role in supporting new businesses and entrepreneurs in Indonesia.

Areas of potential for micro insurance in Indonesia include catastrophe risk insurance and crop yield insurance. Such types of micro insurance have proved highly successful in markets throughout Africa and Asia which are vulnerable to natural disasters and have large portion of the workforce engaged in agriculture and the informal economy.

Bosowa Asuransi is keen to collaborate with international companies and organisations with experience in the field of micro insurance. Key areas of interest are within micro insurance product development as well as the application of suitable technology and distribution channels to effectively penetrate the Indonesian market. In cooperation with strategic partners, Bosowa Asuransi is confident that it can play a central role in Indonesia’s high potential micro insurance industry.