Tugu Reinsurance Prepares for Potential Large Claims from Sumatra Floods

Assessing Flood Impact on Insurance Claims

PT Tugu Reasuransi Indonesia (Tugure) is closely monitoring the situation following the severe floods that have affected several regions in Sumatra, including Aceh, North Sumatra, and West Sumatra since late November 2025. The company's President Director, Teguh Budiman, confirmed that Tugure is assessing the potential risks arising from the disaster and is prepared to handle any resulting insurance claims.

Potential Areas for Insurance Claims

Teguh Budiman identified four major areas that could lead to significant insurance claims:

1. Pertamina Gas Stations: Damage to fuel infrastructure could result in substantial claims.
2. Fertilizer and Rice Warehouses: Destruction of storage facilities may lead to large-scale claims.
3. State-Owned Employee Credit Insurance: Credit insurance policies for civil servants through banks like Bank Sumut, Bank Nagari, and Bank Aceh might be affected.
4. PLN Assets: Damage to electricity infrastructure owned by PLN could lead to considerable claims.

Industry Resilience and Reinsurance

The Indonesian General Insurance Association (AAUI) has reassured that the recent natural disasters will not significantly impact the financial strength of the general insurance industry. AAUI Chairman, Budi Herawan, who is also the CEO of PT Asuransi Candi Utama, emphasized that the industry's reinsurance backup is robust and well-structured to handle such events.

Support for Mandatory Disaster Insurance

Teguh Budiman expressed support for the government's initiative to implement mandatory disaster insurance, highlighting its potential to increase risk awareness. He also stressed the importance of improving urban planning and forest management alongside risk mitigation through insurance.

Current Status of Claims

As of now, Tugure has not received any formal claims related to the Sumatra floods. The company is awaiting reports from ceding companies, particularly for state-owned employee credit insurance claims.