The general insurance sector is optimistic that motor insurance premium income will rise this year, on the back of a number of factors.
The Chairman of the General Insurance Association of Indonesia (AAUI), Dadang Sukresna, said that, in the last three months of this year, demand for automotive products would increase which would have a positive impact on insurance business. The effect of the motor exhibition of Gaikindo Indonesia International Auto Show (GIIAS) in August 2017 provides continued support for insurance business in the last quarter, reported Kontan.
Factors driving business increase also include the renewal of a number of business lines, including vehicle insurance. In addition, the domestic economy is expected to stabilise.
Motor insurance showed a positive trend in the first half of 2017. AAUI records show that motor premiums increased by 9% to IDR8.09 trillion (US$596 million) during the period.