Indonesia: OJK expects insurance industry growth to pick up
Source: Asia Insurance Review | Apr 2019
The Financial Services Authority (OJK) has said that it expects the insurance industry’s premium growth this year to accelerate. In 2018 the growth rate was 9%, lower than in the previous five years when the average growth rate was around 19.5%.
At a recent conference, OJK non-bank financial services division supervision head Ahmad Nasrullah said, “This year, the target is double digits – 12-15%.”
According to him, insurance growth weakened in 2018 because of turbulent global economic conditions.
Mr Nasrullah pointed to Indonesia’s current insurance penetration rate of around 2-3% as a sign of the market potential. He also said that the willingness of foreign insurers to enter Indonesia proved that the market has room to expand. A