Indonesia: Pick up in car sales a boon for motor insurers
Source: Asia Insurance Review | Aug 2018
Vehicle insurance premiums increased by 16.9% to IDR4.79tn ($333bn) in 1Q2018 compared to the corresponding quarter last year, the General Insurance Association of Indonesia (AAUI) has disclosed.
AAUI executive director Dody Dalimunthe attributed this positive performance to the improved automotive market in early 2018, reported Kontan.
Car sales in the first quarter of this year reached 291,912 units, up 2.85% year on year.
At the same time, motor insurance loss ratio improved to 41% from 48.1% in the same period in 2017.
This decline is in line with the insurance company’s risk selection to get better underwriting results, said Mr Dody. A