Established in 1987, PT. Tugu Reasuransi Indonesia (Tugu-Re) was initially intended to exclusively serve the insurance needs of Tugu Group. However, the vast growth of insurance industry in Indonesia has prompted Tugu-Re to review the condition as a unique opportunity to expand its scope of services to cover other insurance companies.
Since 1998, Tugu-Re had enjoyed a positive corporate growth and gained considerable trust from international insurance industry. In 2004, Tugu-Re was appointed as Indonesia’s main entry point for reinsurance cooperation among ASEAN countries under ARES (ASEAN Reinsurance Exchange Scheme), which was followed up by the company’s expansion of its operation to include countries such as Malaysia, the Philippines, Vietnam and Thailand.
However, 2005 proved to be the most challenging period in the company’s history. A series of major natural disasters such as Indonesian Tsunami already put a lot of strain to the national insurance industry as a whole. This external factor, coupled with a multiple of erroneous underwriting acceptance, contributed extensively to the company’s overall performance decrease. During the following two years, Tugu-Re endured the most difficult time since the company’s conception 20 years ago.
Faced with this tough challenge, Tugu-Re decided to take drastic measures to rectify its condition. All of the director and most of the commissioner board was replaced with fresh but highly experienced individuals. New standard operational procedure was applied to the company’s daily operation, with more careful approach to assess acceptance. Also, more focus is aimed at the quality of human resources, work environment and IT development. These efforts are taken to ensure not just the company’s survival, but also its long term commitment to become the leading reinsurance company in Indonesia and in the region.