Tugure Highlights the Importance of Accurate Sum Insured Determination in Business Interruption Insu

Yogyakarta, Indonesia (May 21, 2026) – PT Tugu Reasuransi Indonesia (Tugure) reaffirmed its commitment to supporting capability enhancement and knowledge development within Indonesia’s insurance industry through its Tugure Academy program. During the 2026 Sharing Session, Tugure raised the topic “Business Interruption: Gross Profit vs Revenue: Avoiding the Pitfalls of Misdeclared Sum Insured,” emphasizing the importance of technical understanding in determining the sum insured for Business Interruption Insurance (BI).

The topic has become increasingly relevant amid the growing complexity of business risks that may disrupt a company’s operations. Inaccurate determination of the insured value in a BI policy can lead to protection gaps through under-insurance or over-insurance, ultimately affecting the amount of claim compensation received.

The event, attended by representatives from 18 cedant partner companies, featured Aries Karyadi, Tugure’s Property and Engineering Group Head, as the keynote speaker. During the discussion, Aries emphasized that the Sum Insured for Business Interruption Insurance should be based on insurable Gross Profit rather than solely on Revenue or Turnover.

“Careful and accurate determination of Business Interruption coverage will reduce the risk of under-insurance or over-insurance. This will ultimately enable a more precise determination of the sum insured,” said Aries during the session.

The discussion highlighted various risks arising from inaccurate declarations of the sum insured, including the impact of the Average Clause on claim settlements. The session also emphasized the importance of considering business growth projections and establishing an appropriate indemnity period to ensure adequate coverage and minimize the risk of under-insurance.

Tugure also shared lessons learned from several major Business Interruption claims in the market as part of its efforts to enhance underwriting quality, sum insured determination, and claims understanding. This initiative is expected to help insurance companies, brokers, and reinsurers minimize potential disputes and financial gaps resulting from under-insurance in the event of significant losses.

“This sharing session is one of Tugure’s annual programs. We continuously strive to create a different and engaging atmosphere to support this activity. For this year’s event, we wanted to provide participants with a unique sharing session experience aboard a KAI Tourism Train,” said Nur Falah, Tugure’s Investment Group Head, in his opening remarks.

Through this initiative, Tugure reaffirmed its active role in enhancing the preparedness of Indonesia’s insurance industry in addressing Business Interruption (BI) risks. Supported by strong reinsurance capabilities and extensive industry experience, Tugure continues to serve as a strategic partner to the industry in strengthening resilience against various risks and fostering sustainable collaboration toward a more robust insurance ecosystem.