Indonesia: Life and non-life insurers bullish about prospects
Source: Asia Insurance Review | Feb 2016
The life insurance industry will show a 20-30% growth in 2016 in premiums with the recruitment of more insurance agents to boost industry penetration, according to Mr Hendrisman Rahim, Chairman of the Indonesian Life Insurance Association (AAJI).
He said that the optimism is based on the country’s demographic bonus and the low insurance penetration.
He also said that due to an increased number of new insurance joint ventures as well as the first-phase implementation of the ASEAN Economic Community, the life sector would face some challenges, including increased competition at home and in the region.
General insurance premium growth is expected to increase by 15-20% in 2016 on a bullish economic outlook.
Indonesian General Insurance Association (AAUI) Chairman Mr Yasril Rasyid said that economic growth would quicken, accompanied by strong support from the government in infrastructure as well as policy relaxations, such as a low down payment for vehicles.
However, he said, some challenges would linger as general insurers expect moderate growth in property insurance, while a negative outlook would continue for vehicle protection products due to lower automotive sales prospects.