Insurance
From The Report: Indonesia 2018
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Indonesia’s economy and, with it, the financial services sector, has experienced growth since 2015, spurring demand for a diverse portfolio of insurance products. Life insurance is the dominant segment, accounting for nearly two-thirds of the sector, but demand for general insurance products has risen in recent years. Growing interest has been driven by a number of factors, including successful education efforts by the public and private sector, leading to rising awareness of insurance products among different demographics. Prudent investment practices, the overall strength of the national economy and more robust reinsurance coverage has also led to a trend of increased uptake.

This chapter contains interviews with Ben Ng, President Director, AIA Financial Indonesia; and Jens Reisch, President Director, Prudential Indonesia.

Articles from this Chapter

Overview

Room to grow: Strong fundamentals and rising demand underpin expansion of the industry, though penetration remains low
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Indonesia’s economy and, with it, the financial services sector, has experienced growth since 2015, spurring demand for a diverse portfolio of insurance products. Life insurance is the country’s dominant segment, accounting for nearly two-thirds of the sector, but demand for general insurance products has risen in recent years. Growing interest has been driven by a number of factors, including successful education efforts by the public and private sector, leading to rising awareness of…

Interview

Informed decisions: Ben Ng, President Director, AIA Financial Indonesia, on financial literacy and the growing importance of the industry
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Interview: Ben Ng What is your outlook for the potential of the life insurance segment in the country? BEN NG: We are very optimistic about the market’s outlook. The penetration rate is still low, so there is a lot of potential to be tapped. There is an increase in high-net-worth individuals and an expanding middle class that will fuel the growth of the industry in the short, medium and long term. There is high potential in all sizes of protection; the population is gradually becoming more sophisticated…

Interview

Reaching out: Jens Reisch, President Director, Prudential Indonesia, on increasing insurance penetration
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Interview: Jens Reisch Compared to five years ago, how much more aware are Indonesians about insurance? JENS REISCH: Looking back, there has been clear progress compared with a few years ago, in part due to the help of digital and social media. This phenomenon is increasing access to information, especially in rural areas. Another aspect that has helped, particularly in the past three years, has been the new social health insurance law, which has raised the awareness of the benefits of medical…

Analysis

Watchful eye: A series of new regulations brings clarity and transparency to the new insurance law
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Indonesia’s insurance sector underwent substantial changes in 2016 and the first half of 2017, with the implementation of the latest insurance law – passed in 2014 – and the reorganisation of regulatory bodies. In 2013 the Financial Services Authority (OJK) replaced the Capital Markets and Financial Institutions Supervisory Board (Bapepam-LK) as the supervisor and regulator for banks and other financial institutions, including insurance and reinsurance companies. The OJK, now responsible…