Participated in the OJK Seminar, MSIG Indonesia is Committed to Supporting the Government's Plans for the Development of Electric Vehicles in Indonesia

Webinar OJK

Jakarta, 17 November 2022 - MSIG Indonesia was present at an online seminar organized by the Financial Services Authority (OJK) entitled "Opportunities and Challenges of the Financial Services Industry in Supporting Battery-Based Electric Motorized Vehicles (KBLBB) Financing". This event was held as a form of support from the financial services sector for the government's plan to increase the use of electric cars. Apart from insurance, OJK also presented speakers from regulatory backgrounds, associations to practitioners working in the banking, and financing sectors to be able to provide a comprehensive presentation to the public on the process of developing electric vehicle projects in Indonesia.

Bernard Wanandi as Vice President Director of Asuransi MSIG Indonesia, was present and gave a presentation regarding the opportunities and challenges of insurance for MSIG Indonesia in providing KBLBB insurance. He elaborated that currently MSIG Indonesia had committed to support the government's plans for the development of electric vehicles in Indonesia. This commitment can be seen from the company's business portfolio which has insured KBLBB for passenger cars and two wheels, including electric vehicle batteries and Public Electric Vehicle Charging Stations (SPKLU).

Webinar OJK 2

MSIG Indonesia has also actively collaborated with the General Insurance Association of Indonesia (AAUI) to develop insurance for electric vehicles. Currently, both the general insurance industry and the umbrella association still do not differentiate between electric vehicle insurance and conventional (powered) vehicles. Policies, rates, and statistics for electric vehicle insurance still follow the standards that apply to conventional motor vehicle insurance classes. The penetration rate of electric vehicles is still low, causing this industry to still not be able to achieve economies of scale. This also causes the insurance industry's experience is still limited practically for this electric vehicle insurance.

As part of the MS&AD group of companies, MSIG Indonesia also has a greater opportunity to dig deeper into the development of electric vehicles through the initiatives being developed by MS&AD. Since November 1, 2022, MS&AD Japan has been carrying out coverage expansion to compensate corporate clients' additional costs of converting from petrol cars to KBLBB after a major accident. Compensation for the difference in the price of the new vehicle between gasoline and KBLBB reaches JPY 1 million (around 110 million rupiah). This expansion is planned for release in early 2023. At the same time, MS&AD InterRisk, is also introducing a new service for corporate clients by assisting planning to achieve its carbon neutral initiative targets monitored with measurable CO2 reductions.

At the end of the seminar, all speakers from various sectors in financial services were optimistic about the development of electric vehicles in Indonesia. The government's commitment to accelerating infrastructure development for electric vehicles, as well as solid support from regulators, associations and business practitioners are the main keys to the success of the idea of using electric vehicles.