Insurance Under Pressure Due to Declining Vehicle Sales

KatadataOTO – Pressure on new vehicle sales is claimed to also affect the number of new policies coming into insurance companies. The fewer cars sold, the fewer new applications come in.

This is because most new policies come from customers who purchase vehicles on credit.

“All insurance companies are in a similar situation, which is being very dependent on credit sales. Because it's already a package deal when buying a car,” said Christian Suyoto, Deputy VP MV Marketing - New Account Development at Asuransi Astra.

Unfortunately, he did not explain in detail the extent of the decline they experienced following the pressure on the automotive industry.

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Nevertheless, he continues to strive to keep consumers renewing their policies when their insurance period has expired. Thus, it is hoped that the number of consumers can be maintained.

“It is still rare for customers to extend their vehicle's insurance period. Because generally, only those who have experience with claims do so, as they are already aware of the importance of protection,” he said.

Moreover, for vehicles aged five years and older, the insurance usually stops because the car has generally been sold by the owner.

“The age of a customer's vehicle is usually up to five years, then it is sold and a new unit is purchased. There are indeed old cars that remain insured, but that is usually because the customer has experienced the benefits of the policy,” he then added.

Various methods have been implemented by Asuransi Astra and Garda Oto to raise awareness about the importance of insurance. This includes providing renewal notices before the validity period expires.

“Then, we also ensure that the claims service runs well, so it is hoped that customers feel their needs are met,” explained Christian.

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They also continue to increase the number of partner workshops that can repair vehicles. However, all these workshops must have good standards so as not to disappoint customers.

“Because becoming a Garda Oto partner workshop is not easy. The facilities must be complete to ensure repairs can be carried out according to standards,” said Aufar Saskara, Head of the Asuransi Astra Batam Branch.