Asian News - Indonesia: General insurance sector to see 20% growth
Source: Asia Insurance Review | Apr 2016
The Indonesian General Insurance Association (AAUI) expects gross premiums in the non-life sector to grow to IDR58.9 trillion (US$4.5 billion) this year, a growth rate of 15-20% which will be triple that of 2015’s pace, on the back of government infrastructure developments.
AAUI Chairman Yasril Y Rasyid noted that the industry expanded by 6.7% last year to IDR55.2 trillion, because of slower sales of cars, homes and apartments, reported the Jakarta Globe.
However, the government has been pushing infrastructure projects this year, which is likely to increase demand for insurance, he said.
“In addition, gross premium would also increase because of People’s Business Loan this year, which would reach IDR100 trillion to IDR120 trillion,” he said, referring to a government programme that provides loans to small and medium-sized business.