AAUI: Floods in Sumatra Will Not Affect Insurance Industry

Industry's Financial Strength Remains Intact

The Indonesian General Insurance Association (AAUI) has expressed confidence that the recent floods in Sumatra will not impact the financial condition of general insurance companies. According to AAUI Chairman Budi Herawan, the industry's financial strength will remain intact due to good risk management and reinsurance backup.

Good Risk Management and Reinsurance Backup

"Soal kekuatan financial, saya mengatakan tidak ada pengaruhnya. Sebab, semuanya sudah terstruktur dan kami mempunyai back-up reasuransi yang cukup baik juga," ungkapnya saat ditemui di kawasan Jakarta Selatan, Rabu (17/12/2025).

Domestic Reinsurance Companies Prepared

Budi Herawan also stated that domestic reinsurance companies are prepared to handle potential claims arising from the floods in Sumatra. He expressed hope that the reinsurance companies will be able to conduct a good recovery process for claims related to the disaster.

Conclusion

The AAUI's statement provides reassurance to the insurance industry and the public that the recent floods in Sumatra will not have a significant impact on the industry's financial condition. With good risk management and reinsurance backup, the industry is well-prepared to handle potential claims and maintain its financial strength.