Indonesia: 2016's 5.1% non-life growth is slowest in 5 years
Source: Asia Insurance Review | Apr 2017
Non-life premiums grew at 5.1% last year to IDR61.9 trillion (US$4.6 billion) compared to 2015, reflecting the lowest growth rate over the last five years.
In 2015, general insurance growth was 6.7% while it had hit double-digits in the previous few years.
Referring to the 2016 performance, Mr Julian Noor, Executive Director of the General Insurance Association of Indonesia (AAUI), said: “It’s smaller growth compared to previous years, but we were still able to keep growing amidst the economic slowdown and weak consumer purchasing power that occurred over the past year.”
According to him, the main factor that led to the slower growth was sluggish sales of motor vehicles.
AAUI data show that motor vehicle insurance premiums in 2016 reached IDR16.37 trillion which reflected stagnant growth compared to the IDR16.30 trillion reported for 2015.
In addition, three business lines showed a decline in premiums, namely, transport, accident and miscellaneous insurance last year.