Year 2011 was tough year for the world, as EU countries struggled to manage financial problems of the member countries, and there were several natural disasters, such as Earthquakes in New Zealand and Japan, huge flood in Thailand.
However, Indonesian economy is very strong. Its GDP grew by 6.5% in 2011; the quickest pace since the Asian economy crisis 1997-1998. Such growth was contributed mainly by domestic spending and private investment’s increase. This positive outlook is expected to remain prevail in 2012 to sustain the Government’s GDP growth target in 2012 of 6.7%.
MSIG Indonesia has benefited from such GDP growth as well as the sharp increase of the investment from Japan, and would strive for capturing more opportunities from it in 2012 onwards.
Year 2011 has also become a milestone for MSIG Indonesia, amid the tight competition, we managed to generate GWP (after discount) exceeding IDR 1 trillion for the first time since the establishment of the Company in 1975. This breakthrough is certainly worth to celebrate. However, at the same time, this memorable achievement will become a constant reminder for ourselves to progress even further in years to come. With strong commitments from all staff members of the Company to always uphold our core values, i.e. “Costumer Focus, Integrity, Teamwork, Innovation and Professionalism”, we are optimistic that we would keep advancing towards becoming a leading general insurer in the market.
To complement our current stronghold in the Japanese corporate insurance market here in Indonesia, we also keep reaching out further so that we could provide insurance protection and service to a broader market. Nurturing mutual partnerships with reputable intermediaries and business partners then becomes essential for us in our efforts to expand our market. Concurrently, diversification of product portfolio, from currently more weighted on corporate lines to become more balanced by increasing the personal lines portfolio, would be one of our pillars directing towards the future growth. We believe that through a broader market with a more balanced portfolio, the Company would be able to enjoy a more sustainable growth in the long run.
To support the growth as expected above, the Company keeps improving the service level extended to the customers. Just to mention a few, the Company provides a wide range of trainings and education to staff members, both locally and overseas, to improve their knowledge and skills to enable them serving the customers better, right from the beginning of offer and acceptance stage going through the handling of any misfortune events suffered by the customers up until its settlement as entitled by them. The Company also encourages staff members to pursue insurance professional degree of AAAI-K (associateship level) and AAI-K (fellowship level) by bearing the examination entry fees and providing technical supports (text books and tutorial classes) to the candidates during the process. A special reward and remuneration by the Company are awaiting those having successfully completed the degrees. Through trainings and education, the Company is continuously nurturing the professionalism of the staff members.
In term of daily operation, the level of service provided by the Company is guaranteed by the ISO 9001:2008 certificate which was entitled by the Company for the first time in 2009. Since then, through impartial review and monitoring to the operations of all sections of the Company, and coupled with regular audits, both by internal and external auditors, such level of service is maintained and continuously improved. And just recently, in May 2012, we have successfully passed the recertification process entitling the Company to renew the ISO 9001:2008 certificate for another 3 years, until 2015. And it still becomes our commitment to maintain the level of service, and to improve it further, even after this recertification success.
In term of infrastructure, currently, the Company is in the process of upgrading the computer core system as part of regional driven initiatives to answer the current need which has grown progressively in the last few years; and to anticipate more challenging business requirements as a consequence of our business direction towards the future. By design, the new computer core system is expected to make our process much faster and more reliable so that ultimately our service level to the customers will be significantly increased. With its more advanced features and capabilities, the new computer core system, slated to be in operation by end of 2014, is also expected to be capable of accommodating more diversified portfolios in the future.
Apart from its main venture, i.e. providing insurance protection to the customers by consideration of insurance premium with a provision of some profit, the Company also carries out activities of giving back to the community through the Corporate Social Responsibility (CSR) programs. In general, the CSR programs have been designed to be focusing on environment and education. Currently, our major project, as support to our parent company, Mitsui Sumitomo Insurance Co., Ltd., Japan, is continuation of reforestation of 300 hectare land in Paliyan Wildlife Sanctuary, Yogyakarta which was initiated in 2005. The reforestation program has been run in cooperation with the Ministry of Forestry of the Republic of Indonesia as part of the fight to the diminishing trend of rain forest coverage in the country. By far, after 7 years of the running of the project, the area has been transformed from bold and futile to become much thicker and greener. Along with this reforestation project, numbers of donations, in the form of scholarships and school equipments, have been channeled to local schools in the neighborhood to synergize the eco-benefit of the reforestation project with the education-benefit for the local community in the surroundings; since 2005 until recently, and to continue in years to come.
In addition to these major CSR activities, the Company also contributes to the Indonesian Insurance Industry by dispatching 4 staff members to some strategic positions at the General Insurance Association of Indonesia (AAUI) and also by holding BCP/Risk Management seminars.
Continuing the contribution to the society and insurance industry are mandated by the Company’s Statement of Mission and Vision.
Jakarta, May 2012