News eDaily12 Oct 2017

Indonesia:General insurers optimistic of 6-7% premium growth this year

12 Oct 2017

The General Insurance Association of Indonesia (AAUI) is optimistic that the non-life insurance market would grow by up to 7% for the whole of this year, although the sector saw a decline in business of about 4% in the first half of this year.

Mr Dadang Sukresna, AAUI Chairman, estimates that non-life premiums would grow for this year as a whole, though at a single-digit rate. He projected that general insurance premiums would increase in the range of 6%-7% this year.

He noted that the non-life sector declined by 4% to IDR29.1 trillion (US$2.15 billion) in the first six months of this year, compared to IDR30.3 trillion in the corresponding period in 2016.

"Although the premiums dropped, claims also fell,” he said. Claims dropped by 9.6% to IDR12.4 trillion in the first half of this year compared to the corresponding half last year.

For the growth of the insurance industry, Mr Dadang hopes that infrastructure projects in the country would run well. The infrastructure sector has become one of the largest contributors to the performance of the general insurance market in the country. Infrastructure projects planned for completion by 2019 across the country include seaports, power plants, railways, toll roads, and airports.


Mr Dadeng, who was speaking last week at a college campus, also called for the training of more actuaries for the insurance industry. He said: "Of the 81 AAUI members, only 37 have actuaries.”

He said: “As more and more young people know about insurance, they will share the information or knowledge they get about insurance with their family. In addition, this generates their interest in joining the workforce. This industry continues to see a lack of human resources because it is growing.”


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