ACA: Insurance Is Not a Burden, but Financial Protection Against Illness and Medical Inflation

isurance (Doc.ist)

Printable.biz.id - In Indonesia, insurance is still considered a tertiary need. Many people feel they don’t need it yet or cannot afford to pay the premiums, resulting in a low insurance penetration rate.

According to data from the Financial Services Authority (OJK), as of the end of 2023, the insurance penetration rate in Indonesia was only 2.59 percent.

However, according to Asuransi Central Asia (ACA), the premiums paid are not a burden but a form of financial protection. ACA’s Deputy Director, Budi Harto, expressed this view during the Infobank Financial Love Story: Protect Your Heart, Grow Your Health, Secure Your Future event on Saturday, February 22, 2025.

Budi explained that having insurance is crucial to protecting oneself from the risk of serious illness. If someone falls ill without insurance, medical expenses can be overwhelming and drain their savings.

"Disease does not discriminate by age, religion, or race. Anyone can be affected. And when it happens, it can be dangerous," Budi added.

Additionally, medical cost inflation is another key reason for having insurance. According to Budi, there was no medical inflation during the COVID-19 pandemic (2020-2021). However, in 2022, medical inflation surged by 15 percent.

This increase has made healthcare costs more expensive and less affordable for many people. With insurance, individuals can protect themselves from rising healthcare expenses in the future.

"For example, maybe you used to think medical costs weren’t that expensive. But in 2022, medical expenses increased by 15 percent. Having health insurance makes everything easier," Budi explained.

In conclusion, having insurance is essential for maintaining financial stability in a family. With insurance, medical expenses can be covered, ensuring that personal and family finances remain secure.