Literacy regarding insurance in Indonesia is currently still relatively low. Based on the results of the National Survey on Financial Literacy and Inclusion (SNLIK) conducted by the Financial Services Authority (OJK) in 2022, literacy in the insurance sector was still below literacy in the banking sector, namely at the level of 31.72 percent while banking literacy reached 49.93 percent.
This problem is the main concern of the Insurance and Actuarial Administration study program, Vocational Education Program, Universitas Indonesia (UI). Welcoming Financial Inclusion Month which is celebrated in October every year and Insurance Day on October 18, the Insurance and Actuarial Administration study program (prodi) held a community service activity (pengmas) entitled Insurance Goes to School (IGtS).
The service team was chaired by the Head of the Insurance and Actuarial Administration Study Program, Yulial Hikmah, S.Si., M.Si., together with 40 students from the Insurance and Actuarial Administration study program. The service team visited six senior high schools (SMA) in Jakarta and surrounding areas throughout October 2023 to increase students’ awareness and understanding regarding financial management.
The IGtS program was implemented at SMAN 13 Jakarta on October 9th 2023; SMAN 4 Cibinong on October 16th 2023; SMAN 65 Jakarta on October 18th 2023; SMAN 29 Jakarta on October 23rd 2023; SMAN 54 Jakarta on October 25th 2023; and SMA Tugu Ibu 1 Depok on October 27th 2023.
Yulial said that IGtS activities included delivering material about the benefits of saving and investing, introducing the types of financial institutions, how to make a personal budget, and so on. “We are trying to encourage high school students to learn about financial management from an early age. Apart from that, we also teach high school students to make simple personal budgets, such as recording income and expenses, as well as how to evaluate their respective financial health conditions,” said Yulial.
Through the financial and insurance knowledge provided, high school students are expected to be able to understand and use financial products and services according to their needs. Moreover, they are also equipped with the ability to make good financial plans, be responsible for the financial decisions they make, and avoid investing in activities that use illegal financial instruments.
Syifa Aulia Azhim, a student at SMAN 13 Jakarta, said that the community service activity gave her new insights. “As a high school student who doesn’t understand financial management, this IGtS activity has helped me a lot to prepare myself in planning my finances for the future. We were also introduced to various insurance products and services, as well as the short and long term functions of this insurance,” said Syifa.
The UI Vocational Program believes that in order to achieve sustainable development that is able to maintain overall economic stability, intervention from various parties is needed, including from the education sector. Director of the UI Vocational Education Program, Padang Wicaksono, S.E., Ph.D, stated that the Insurance Administration and Actuarial study program continues to create competent experts in the insurance industry.
He said, “One of the achievements of the Insurance and Actuarial Administration study program is to educate the public regarding the importance of financial and insurance literacy. The existence of a community service program like this is one form of effort to achieve this vision. Apart from that, involving students in it also provides experience for them before entering the world of the insurance industry.”
