Facing Catastrophe: How PT Proxima Indonesia Loss Adjusting Tackles CAT Claims Challenges in Indonesia
By Sabar Napitupulu – Technical Director, PT Proxima Indonesia Loss Adjusting

When catastrophe strikes—be it an earthquake, flood, tsunami, or landslide—loss adjusters are often the first line of response in helping insureds recover. In Indonesia, where natural disasters occur frequently and with significant intensity, the role of loss adjusters becomes even more critical. From navigating blocked roads to interpreting policy wordings, PT Proxima Indonesia Loss Adjusting has been at the forefront of responding to large-scale CAT (catastrophe) events.
Below, I share some of the key challenges and insights from the field, based on our experience across the archipelago.

1. Overcoming Logistical Hurdles in CAT Response
One of the biggest challenges we face as loss adjusters in Indonesia is logistics, especially in the immediate aftermath of a catastrophe.
Getting to the site is the first and often most difficult task. In areas like Sulawesi, Kalimantan, Papua, or remote parts of Sumatra, road access is frequently cut off, airports are overwhelmed, and communication networks are down. Just reaching the loss location can take days, which delays everything—from inspections to reporting.
On top of that, we deal with shortages of essential resources like transport, fuel, mobile power, and even safe accommodation for our team. Mobilizing a crew with proper tools and safety gear becomes a race against time.
Then comes the volume of claims. After a major CAT event, we’re often looking at hundreds of losses across different provinces. It requires quick triage, close coordination with insurers and brokers, and strict adherence to documentation protocols. In some cases, insurers support us by allowing spot settlements for smaller, straightforward claims, which helps keep things moving while we handle larger losses in more detail.

2. Policy Gaps and Practical Realities in CAT Events
In Indonesia, CAT events are mainly addressed through two types of policies:

• The Indonesian Earthquake Standard Policy (PSAGBI) covers earthquakes, volcanic eruptions, and related perils like fire or explosion.
• The Property All Risks (PAR) policy is commonly used for other CAT perils like flood, storm, and landslide.

While both policies are essential, they often come with exclusions, sub-limits, and conditions that lead to disputes.
One recurring issue is when a covered peril triggers an excluded event. For example, after the 2018 Palu earthquake and tsunami, we saw disputes over looting and theft that occurred in the aftermath. These "chain reaction" scenarios create coverage ambiguities that complicate settlements.
Underinsurance is another frequent challenge. Many insureds rely on outdated or estimated valuations. When a loss occurs, insurers apply the average condition, resulting in reduced settlements.
Business Interruption (BI) coverage is also often missing or under-structured. Even when included, the standard indemnity period is just three months—far too short for businesses that require six to twelve months to fully recover.
Missing policy extensions, like denial of access or customer/supplier clauses, are another problem. These extensions are crucial in wide-area catastrophes, and without them, the insured may face serious gaps in recovery support.
Lastly, we often encounter inconsistent policy wordings, especially on terms like "wide-area damage" or deductible application. These inconsistencies can lead to different interpretations among insurers, brokers, and insureds.

3. Encouraging Progress in Site Access and Client Readiness
Despite the challenges, we’ve seen notable improvements over the past few years.
Among large corporates and industrial clients, there’s better awareness about securing the loss site and preparing for adjuster inspections. Insurers and brokers now play a more active role in coordinating site access—often within 24 to 48 hours post-event.
Pre-loss documentation has also improved. Clients are keeping more accurate asset registers, maintenance records, floor plans, and valuations. These documents significantly speed up our damage assessments and reporting process.
And, of course, technology has made a big difference. From WhatsApp and cloud storage to drone footage and teleconferencing, we’re now able to gather and share evidence remotely—a major help when physical access is delayed or restricted.
Looking Forward
At PT Proxima Indonesia Loss Adjusting, we remain committed to helping insurers and insureds navigate the complex aftermath of catastrophe events. As climate-related risks grow, our mission is not just to quantify damage—but to bridge the gap between policy terms, ground realities, and recovery.
We believe collaboration, clarity in policy design, and preparedness are key to building resilience in Indonesia’s insurance landscape.