Director of Reasuransi Indonesia, Kocu A. Hutagalung said that the cooperation with ITB aims to help IndonesiaRe to determine the best insurance tariff that can represent the risk level. In this case, the insurance is fire insurance.

He said that IndonesiaRe as a national reinsurance company wants all its operational activities in the effort to manage risk to be based on science through available quantitative method and leave old ways and practices in risk management. Therefore, statistics and actuary are used as the methodology.

The methods are common to the scholarship in ITB. There are research groups such as Statistics, Industrial and Financial Mathematics, and Actuary Master’s Program.

In Indonesia, fire insurance data are managed by BPPDAN (National Insurance Data Center Agency). BPPDAN is industry-owned and Indonesia Re is the management. These millions of data obtained since 1993 can be gathered as data bank. “So we think we should be the one to manage those data to get realistic data on the fire risk. That is why we come to ITB. The quantitative science is in ITB and other higher educations,” he said.

Kocu said that from the result of the cooperation with ITB, proper insurance tariff will be obtained using statistics and actuary methods. A team from FMIPA ITB will then validate it. “The tariff will be presented in front of members of insurances and Financial Service Authority (OJK). It is up to them what they will do about the tariff proposal and the methods,” he continued.

Vice Dean for Academic Affairs of FMIPA ITB, Prof. Drs. Abdul Waris welcomes the cooperation. He hopes that the cooperation will be conducted continuously. As the implementation, a team from FMIPA ITB will hold workshop, seminar, and company visit to IndonesiaRe.

“The cooperation comes in many forms. The point is, we want to develop methodology to property asessement tariff so that they will have a standard. ITB will help to develop the calculation method,” he said.

He continued that in the future the cooperation might continue to next phase. “This might be the first cooperation and might continue to next cooperation,” Waris said.

Reporter: Adi Permana