Tsunami occurred by the end of 2004 affect the underwriter consideration on their acceptation.  The natural catastrophe might bring benefits and treats as well. 

Being worried that tsunami might happen again in the future make the society consider to have insurance protection that will increase the premium income.  However, it becomes a real treat if the tsunami occurred and it will raise the claim’s payment.  By the year 2005, life insurance has settled the claims for tsunami in Aceh.  Two reasons mentioned above are the main reasons why the insurance industry has to provide sufficient capacity to coping demand of insurance protection that is likely to increase in the future.  As a reinsurer, ReINDO has to provide sufficient capacity to anticipate the demand for reinsurance protection that is likely to increase, fulfilled the market condition and the company’s ability so that ReINDO has changed the structure of underwriting capacity in 2005.

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