DIGITAL INSURANCE CONTRACTS IN INDONESIA: POTENTIALS AND CHALLENGES

Abstract

This article analyzes the potential and challenges associated with the development of digital insurance contracts in Indonesia, and explains the importance of regulation to protect customers and maintain the sustainability of this development. Digital insurance contracts have the potential in terms of operational efficiency, wider accessibility for customers, and increased transparency in the offer of insurance products. With faster and more automated administrative processes, insurance company operating costs can be reduced, providing added value for customers in the form of more affordable premiums. Digital insurance contracts also provide greater accessibility benefits, especially for communities in remote areas that are difficult to access by conventional insurance companies. Through descriptive research and literature analysis, this article provides in-depth understanding of the development of digital insurance contracts in Indonesia. However, there are challenges related to the protection of customer personal data, data security, and the legal aspect. Regulation is needed to ensure that insurance companies and third parties comply with established privacy and security standards, and to provide legal certainty for all parties involved in digital insurance contracts.