Global reinsurance giant Swiss Re was the lead reinsurer for the Indonesian government’s recently completed natural disaster insurance cover for certain state assets.
Announced in late November, the Government of Indonesia signed an umbrella contract with a consortium of 56 insurers and reinsurers to protect state assets against natural disasters and other major risks.
It’s now been confirmed that Swiss Re was the lead reinsurer for the $770 million risk financing initiative, which will protect ministry and institutional buildings in Indonesia against structural damage until 2023.
At the same time, Swiss Re also advised the country’s government on the nat cat cover, which comes on the back of a particularly devastating year for the country in 2018, underpinned by a series of earthquakes and tsunamis which left thousands dead and infrastructure in ruins.
Commenting on Swiss Re’s involvement, Vincent Eck, Managing Director and Head of Public Sector Solutions Asia, Swiss Re, told Reinsurance News: “We are proud that we were able to advise and support the Indonesian government in this important initiative. One key to a quicker recovery following a natcat event is ensuring that crucial government machinery and assets are protected and will be up and running as soon as possible.
“Swiss Re is proud to be able to play a role in making Asia a more resilient place to live, grow and thrive.”
At the time of the announcement, Director General of State Assets of the Ministry of Finance, Isa Rachmatawarta explained that the buildings are insured against a range of natural disasters, including earthquakes, floods, tsunamis and fires, as well as riots, sabotage, terrorism, and plane crashes.
Once the Ministry of Finance is fully protected, assets controlled by 10 further ministries will be involved in 2020. In 2021, the number will increase to 20 ministries, then to 40 in 2022, with all ministries and institutions hoped to be covered in 2023.