Natural Disaster Insurance Policy in Indonesia: Proposing an Institutional Design

DOI

10.2991/assehr.k.210531.035How to use a DOI?

Keywords

Natural Disaster Insurance Policy, Institutional Design, Indonesia

Abstract

Natural disasters are a significant phenomenon that often take place in Indonesia. Indonesia’s geographic position gives it a high risk of natural disasters. In 2018, the government of Indonesia created a natural disaster insurance policy as an effort to finance disaster mitigation without depending on the state budget. Natural disaster insurance is intended to divert risk, which was initially entirely borne by the government, to insurance companies or other stakeholders. The issue of governance or institutional management of insurance funds is essential, as is considering accountability and transparency. In the institutional context, the interests of the stakeholders, namely the government, the community, and insurance companies, need to be considered. The purpose of this study is to initiate an institutional design of natural disaster insurance fund management in Indonesia. This research uses a qualitative approach with in-depth interviews and a review of the existing literature. The results showed that both the private sector and the government can manage natural disaster insurance funds. By considering accountability and transparency, as well as the significant risk of natural disasters, it was determined that the government can work with private insurance companies, both in the form of consortia and associations, to manage natural disaster insurance funds.

Copyright

© 2021, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Dini Dubelmar
AU  - Made Astrin Dwi Kartini
AU  - Sabila Mareli
AU  - Murwendah Soedarno
PY  - 2021
DA  - 2021/05/31
TI  - Natural Disaster Insurance Policy in Indonesia: Proposing an Institutional Design
BT  - Proceedings of the Asia-Pacific Research in Social Sciences and Humanities Universitas Indonesia Conference (APRISH 2019)
PB  - Atlantis Press
SP  - 277
EP  - 284
SN  - 2352-5398
UR  - https://doi.org/10.2991/assehr.k.210531.035
DO  - 10.2991/assehr.k.210531.035
ID  - Dubelmar2021
ER  -