Inclusive insurance and risk financing in Indonesia. Snapshot and way forward 2023

Inclusive insurance and risk financing in Indonesia. Snapshot and way forward 2023

November 13, 2023

This report presents the main findings of UNDP’s inclusive insurance and risk finance country diagnostic for Indonesia. It sets out key risks, the current inclusive insurance and disaster risk finance landscape, and recommendations to advance inclusive insurance, risk finance and development.

Indonesia’s top risks include floods, tsunamis, landslides, heatwaves, droughts, earthquakes and volcanic eruptions. Microinsurance regulations and policies are in place and government-subsidized schemes offer crop, livestock and fishing insurance, as well as health insurance. A disaster risk finance strategy was adopted in 2018.

Recommendations include strengthening the enabling environment for sovereign risk finance and inclusive insurance and integrating risk finance and inclusive insurance into national development planning.