Sompo Insurance Indonesia Covers Prawn Farming Business
On December 11th 2017, Sompo Insurance Indonesia along with other eight insurance companies have agreed to a co-insurance program initiated by Ministry of Maritime and Fisheries to cover prawn farming business in Indonesia. The insurance program is the embodiment of KKP Minister Regulation No 18/PERMENKP/2016 on protection for fishermen, fish raisers, and salt farmers. Indonesian General Insurance Association (AAUI) and Financial Service Authority (OJK) also supported this co-insurance program aimed to spread the risks with an agreed portion upon members, and maximizing service coverage to shrimp ponds. The program targets to provide an insurance for 3,300 hectare of small-scale prawn farmers over 14 Provinces in Indonesia during one year contract period. Total premium value for the program reaches Rp1.5 billion, which is entirely borne by the government through the 2017 APBN allocation.
SII is considered to have a strong involvement in this scheme following its previous successful co-insurance product, Weather Index Insurance.