Indonesia: Non-life market forecast to grow by 5% in 2018
Source: Asia Insurance Review | May 2018
The General Insurance Association of Indonesia has predicted that non-life premiums would grow by at least 5% this year, based on robust performance seen in the early months of the year.
Data from the financial services authority (OJK) shows that in February 2018, the general insurance industry posted gross premiums of IDR9.67tn ($703m), reflecting a growth rate of 18.9% compared to the corresponding month in 2017. The positive performance is expected to continue until the end of the year.
AAUI executive director Dody Dalimunthe said that the positive showing at the beginning of this year was driven by two major business lines, namely motor and property. In addition, buoyant economic growth forecast for this year would give a boost to purchasing power.
He said, however, that factors which could retard insurance growth this year would be the state of the political economy in the country as well as international economic conditions.
OJK data indicates that the general insurance industry recorded premium income of IDR63.62tn in 2017, which was 3.1% higher than in 2016. A