Insurance
From The Report: Indonesia 2017
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With strong premiums growth in recent years, a liberal investment environment and a low penetration rate, Indonesia’s insurance sector is poised for a period of rapid expansion. A slight market slowdown in 2013-14 – due in large part to regional economic volatility – appears to have reversed course in the first half of 2016, with positive implications for the country’s insurers, particularly its major players. As of June 2015 – the most recent date for which data was available – Indonesia was home to 129 policy underwriters, including 50 life insurers and 79 non-life insurers. Additionally, at this time the market was made up of five reinsurance companies, 161 insurance brokers and 35 reinsurance brokers.

This chapter contains an interview with Yasril Rasyid, President-Director, Reasuransi MAIPARK Indonesia; and Chairman, Indonesian General Insurance Association.

Articles from this Chapter

Overview

Coverage on the rise: Low penetration and rapid expansion indicate sizeable potential for growth
OBG
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With strong premiums growth in recent years, a liberal investment environment and a low penetration rate, Indonesia’s insurance sector is poised for a period of rapid expansion. A slight market slowdown in 2013-14 – due in large part to regional economic volatility – appears to have reversed course in the first half of 2016, with positive implications for the country’s insurers, particularly its major players. As of June 2015 – the most recent date for which data was available – Indonesia…

Interview

Fostering growth: OBG talks to Yasril Rasyid, President Director, Reasuransi MAIPARK Indonesia; and Chairman, Indonesian General Insurance Association
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Interview:Yasril Rasyid Which sectors are likely to drive further expansion of general insurance? YASRIL RASYID: The insurance sector plays a significant role in the economic development of every country. Looking back at Indonesia’s financial crisis in 2008, the insurance sector was tougher than other financial institutions during the financial turmoil. For the last five years insurance industry growth has been around 17%, which is far above national economic growth of 5%. In 2015 general…

Analysis

Digital underwriting: The integration of new technologies into the insurance sector could result in a sea change
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Despite some downward pressure in 2014-15 – in part, due to volatility in the mining and energy sectors – Indonesia’s insurance sector has experienced strong growth in recent years and premiums are expected to increase by a double-digit margin in 2016, according to a forecast by the Association of General Insurance Companies in March 2016. The bulk of this expansion will be driven largely by the nation’s robust economic fundamentals, namely ongoing population growth and the emergence of a…

Analysis

Strong prospects: The life segment is poised for significant expansion
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Life insurance which has been the largest component of Indonesia’s insurance industry in recent years, recorded a significant decline in revenues in 2015. According to the Indonesia Life Insurance Association (AAJI), in the first nine months of 2015 the life insurance segment saw revenues decline by 26.3% in total, on the back of a 152.7% drop in investment yields. Indonesia’s life underwriters rely heavily on investment-linked products (ILPs), which, due to volatility on the Indonesia Stock…