Sumatra Floods Raise Reinsurance Concerns While Maipark Remains Unaffected

Flood Impact Assessment

The recent floods and landslides in Aceh, West Sumatra, and North Sumatra have raised concerns about potential significant impacts on Indonesia's reinsurance industry. Insurance expert Irvan Rahardjo noted that the limited access to communication and ongoing isolation in some areas are hindering the flow of claims to insurance companies, subsequently affecting reinsurance claims ¹

Maipark's Exposure

PT Reasuransi Maipar Indonesia (Maipark) has clarified that it is not affected by the flood risks in Sumatra as it currently only underwrites earthquake, volcanic eruption, and tsunami risks. Maipark's CEO, Kocu Andre Hutagalung, confirmed that other risks such as floods are not covered by the company, thus the recent Sumatra floods do not impact Maipark's exposure or financial performance ²

Industry Implications

While Maipark remains unaffected, the overall reinsurance industry faces uncertainty. The true extent of the claims remains dynamic and uncertain due to the challenges in reporting from the affected regions. As more information becomes available, the industry may see a clearer picture of the financial implications of these natural disasters.