Transformative Potential of Digital Tools
A recent report from the International Labour Organization (ILO) highlights the significant impact of digital tools in enhancing access to employment injury insurance (EII) in Asia. The report emphasizes how these advancements can particularly benefit informal workers, small business owners, and self-employed individuals.
Key Findings from Three Countries
Titled Recent Advances in the Digitalization of Employment Injury Insurance Administration, the report examines developments in EII administration in Indonesia, Malaysia, and the Republic of Korea. It outlines essential findings from these nations and proposes a framework for future digital initiatives.
Improved Access and Coverage Rates
The study reveals that digital platforms and mobile applications have simplified registration and claims processes. These improvements have led to better EII coverage rates. In Asia and the Pacific, only 25% of workers are covered by EII, which is significantly lower than the global average of 35%.
Importance of Robust ICT Infrastructure
The report stresses the need for strong information and communication technology (ICT) infrastructure to access digital services. The Republic of Korea stands out with advanced infrastructure and high digital literacy, ranking 4th globally in the UN’s Telecommunications Infrastructure Index. While Malaysia and Indonesia have made notable progress, they still face challenges in rural areas, indicating a need for better connectivity.
User-Friendly Applications and Portals
The report highlights user-friendly mobile applications and online portals that have increased EII participation among self-employed workers and small business owners. In Indonesia, for example, 74% of social security claims are now processed through the Jamostek Mobile (JMO) app. Similarly, Malaysia’s ASSIST and MATRIX portals are contributing to this growth.
Administrative Efficiency Improvements
Centralized IT systems in Indonesia and Korea have enhanced administrative efficiency by consolidating data into a unified database. Malaysia is also working on reforms to improve its IT system coherence by 2025.
Furthermore, Korea’s integration of social security systems with medical institutions through its Medical Treatment Exchange System has streamlined claims processing. This model is seen as a benchmark for other countries. The report urges stronger collaboration among governments, medical institutions, and the private sector to maximize digital integration.
A Call for Inclusive Social Protection
“Digital technologies have the power to extend social protection to millions of workers who are currently unprotected, especially in the informal economy,” stated 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 added.
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