A new report from the International Labour Organisation (ILO) underscores the transformative potential of digital tools in improving employment injury insurance (EII) access and coverage in Asia especially for informal workers, small business owners, and self-employed individuals.
The report, entitled Recent Advances in the Digitalisation of Employment Injury Insurance Administration examines recent strides in the digitalisation of employment injury insurance (EII) administration in Indonesia, Malaysia, and the Republic of Korea. It presents key findings from these countries and provides a framework for future digitalisation initiatives.
The study highlights how digital platforms and mobile applications have facilitated simplified registration and claim processes, significantly improving EII coverage rates. This is particularly crucial in Asia and the Pacific, where only 25% of workers are effectively covered by EII, much lower than the global average of 35%.
The report emphasises how robust ICT infrastructure is critical for accessing digitalised services. The Republic of Korea leads with advanced infrastructure and high digital literacy, ranking fourth globally in the UN’s Telecommunications Infrastructure Index. Malaysia and Indonesia have also made significant improvements but face challenges in rural areas, highlighting the need for enhanced connectivity in these regions.
Mobile applications and portals like Indonesia’s Jamostek Mobile (JMO) and Malaysia’s ASSIST and MATRIX portals are noted for their user-friendliness and significant contributions to increased EII participation among self-employed workers and small business owners. In Indonesia, for instance, 74% of social security claims are now processed through the JMO app.
Centralised IT systems in Indonesia and Korea have improved administrative efficiency by consolidating data into a single, well-integrated database. Malaysia is piloting similar reforms to improve its IT system coherence by 2025.
In addition, Korea’s integration of social security systems with medical institutions through its Medical Treatment Exchange System has streamlined claims processing, setting a model for other countries. The report calls for stronger collaboration between governments, medical institutions, and the private sector to optimise digital integration.
“Digital technologies have the power to extend social protection to millions of workers who are currently unprotected, especially in the informal economy,” said Shin Hochcul, chief technical adviser of the ILO-Korea Partnership Programme which produced the report.
“Our findings show that with the right infrastructure, collaboration, and user-friendly systems, we can significantly expand employment injury insurance coverage and improve social security systems to be more inclusive and efficient,” he said. – International Labour Organisation
