Problems of Insurance in the Coming Age of Disasters

Abstract

The existence of disaster insurance in Indonesia is particularly important because the area is prone to disasters, especially for MSMEs.Increasing resistance to hazards from climate change and disasters can benefit greatly from well-designed insurance programs. The insurance system used must be effective and ideal, which is the basis for the thinking in writing this paper. The purpose of this study analyzes the status, types, and evolution of market-based disaster insurance schemes required in Indonesia by considering that natural disaster insurance is extremely important. Indonesia still do not have coverage options. Where insurance coverage does exist, it is frequently enforced by mandated insurance and credit-linked goods, as well as premium subsidies. It is expected from the findings and creations arise from the paper goal to develop a good, efficient, and ideal natural catastrophe insurance system for the people of Indonesia. It is also hoped that this writing would be effectively put into practice in the future, bringing wealth to those who have been affected by natural disasters. As a result, all tiers of Indonesian society can achieve the common goal of the Indonesian people, which is to achieve community welfare and protection.