Insurance
From The Report: Indonesia 2019
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Indonesia’s insurance sector is crowded, reflective of the country’s sizeable population – the world’s fourth largest, at around 265m – as well as its potential. Some 152 companies vied for premium in 2017, operating in an environment that, although it presents significant opportunity, also comes with a measure of insurable risks, in particular from extreme weather and natural disasters. In the highly competitive life market, agents reach out to consumers by offering unit-linked policies, which combine life coverage and regular investment income. While formal products remain outside the reach of most Indonesians for now, the wealthier segments of the market nonetheless represent an attractive target for insurers. This chapter also contains an interview with Jens Reisch, President Director, Prudential Indonesia.

Articles from this Chapter

Overview

Capture the market: A large and growing middle class could unlock profits
OBG
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Indonesia’s insurance sector is crowded, reflective of the country’s sizeable population – the world’s fourth largest, at around 265m – as well as its potential. Some 152 companies vied for premium in 2017, operating in an environment that, although presenting significant opportunity, also comes with a measure of insurable risks, in particular from extreme weather and natural disasters. In the highly competitive life market, agents reach out to consumers by offering unit-linked…

Analysis

Natural hazards: Preparation for unexpected weather events continues to improve protection of workers and agriculture
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On a global scale, Indonesia is a country with one of the highest disaster rates. The archipelagic nation is situated on the infamous Pacific Ring of Fire, which lies around the Pacific Ocean and wherein volcanic eruptions and earthquakes frequently occur. As such, the country is subjected to frequent natural disasters such as flooding, earthquake, landslides, tsunamis, volcanic eruptions and cyclones. On average there were 289 natural disasters annually between 1989 and 2019, directly and…

Interview

Educating communities: Jens Reisch, President Director, Prudential Indonesia, on the growth trajectory of the country’s insurance sector
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Interview:Jens Reisch What is the outlook for the insurance sector? JENS REISCH: In Indonesia life insurance penetration is still low at 2-3% of GDP and around 8% in population terms. For life insurance, the products on offer are on par with those to neighbouring countries. With the country’s average life expectancy on the rise, the number of sophisticated life insurance products and solutions will continue to grow. On the other hand, health insurance, critical illness, family coverage…

Overview

Reassuring trend: New reinsurance programmes are bolstering coverage against natural disasters in emerging markets
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While advanced economies generate the vast majority of insurance and reinsurance business, emerging markets are posting higher rates of growth. Complementing this underlying trend is a strong and expanding interest in catastrophic risk, which by nature tends to pertain to emerging markets. This is coming alongside fast-paced, sector-transforming innovation, which could provide a major boost to industries in less-developed economies. By the Numbers In terms of simple throughput, insurance remains very much centred in North America, Europe and mature Asian markets. With long histories of trading risk, a general acceptance of the relevant…

Overview

Reassuring trend: New reinsurance programmes are bolstering coverage against natural disasters in emerging markets
OBG
plus

While advanced economies generate the vast majority of insurance and reinsurance business, emerging markets are posting higher rates of growth. Complementing this underlying trend is a strong and expanding interest in catastrophic risk, which by nature tends to pertain to emerging markets. This is coming alongside fast-paced, sector-transforming innovation, which could provide a major boost to industries in less-developed economies. By the Numbers In terms of simple throughput, insurance remains very much centred in North America, Europe and mature Asian markets. With long histories of trading risk, a general acceptance of the relevant…