Looking at Travel Insurance Opportunities

01 December 2022

The summit of multilateral cooperation forum consisting of countries with the largest economies in the world consisting of 19 countries and the European Union (EU), commonly known G20 Summit, which has been held in Bali on November 15 to 16, 2022, is one of the special achievements for Indonesia on international scene. In the meeting which was attended by delegates from each member country, Indonesia managed to reach several agreements, one of which contained the important role of the tourism sector for global economic recovery as well as the role of the creative economy in increasing resilience of local tourism communities and MSMEs as stated in the G20 Bali Leaders' Declaration. Even discussion on tourism continues at 2022 Global Tourism Forum-Annual Meeting (GTF-AM) right after the G20 Summit (17/11/2022) in Bali. In this forum, the Indonesian Minister for Tourism and Creative Economy hopes that there will be real solutions to challenges faced by tourism industry on a global scale and targets job openings.

As one of the main sectors that play a role in increasing foreign exchange earnings and creating jobs to lowest level in society as well as contributing as a wheel that drives regional economy, the government is very serious about encouraging growth of the tourism sector which was slumped by the Covid-19 pandemic. However, throughout 2021, the tourism and creative economy sectors have managed to contribute 7.5% of Indonesia's GDP, and are expected to increase by 4.3% in 2022.

With the Covid-19 pandemic gradually improving condition, Indonesia's opportunities to grow and introduce Indonesian tourism are also increasingly wide open. From BPS data for period January to September 2022, number of foreign tourist visits to Indonesia through main entrance reached 2.27 million visits, an increase of 2,530.58% as compared to number of foreign tourist visits in the same period in 2021. On the other hand, the government's role in promoting tourism has also been carried out since the last few years, such as organizing several international events, namely MotoGP, WSBK, Formula E, and other events.

However, supporting factors that can promote Indonesia's tourism potential should also be the Government’s concern. Comfort and safety of travelers is one of provisions that will make Indonesian tourism increasingly attractive. The government must be able to provide security guarantees for tourists, availability of easily accessible information to insurance protection when traveling.

If reflect on several countries, insurance protection is the main thing that must be fulfilled when traveling. With this travel insurance, the government fully hands over the risks that often arise to insurance companies, ranging from accidents, hospital fees, delays and cancellations of departure schedules, loss and damage to luggage to protection from exposure to Covid-19. In Indonesia itself awareness of importance of insurance protection only emerged when Covid-19 pandemic hit the world. Most recently, through Circular Letter of the Task Force for Handling Covid-19 Number 7 of 2022, foreigners and Indonesian citizens domiciled abroad intending to enter Indonesian territory on tourism purpose are required to attach proof of ownership of health insurance with a minimum coverage value of USD 25,000 which includes financing for handling Covid-19.

Considering the enormous potential of Indonesia's tourism as well as awareness of insurance protection, travel insurance business opportunity will certainly be very promising. By the obligation of possessing travel insurance, of course, it can create tourism environment more comfortable and enjoyable, and it has protection for travelers who will come to Indonesia. Not only for foreign tourists, this insurance protection can also be applied to domestic tourists of Indonesia. What needs to be taken into account is that this policy must also be accompanied by continuous education to all people so that the purpose of protection from travel insurance can be enjoyed by all levels of society.


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