The six reinsurance companies in Indonesia have been urged to increase their capacity, so as to promote the domestic insurance and reinsurance ecosystem and quality of business.
Tugu Reasuransi Indonesia (Tugure) posted gross premiums of IDR3.06tn ($212m), an increase of 31% compared to 2018's IDR2.33tn, according to the company's president director Adi Pramana.
Reinsurers are preparing strategies to maintain liquidity as they are expecting a greater impact from the COVID-19 pandemic which has already slowed down reinsurance business.
The Indonesian General Insurance Association (AAUI) states that general insurers must begin evaluating the performance of credit insurance as lending practices are disrupted by the coronavirus pandemic.
Financially stricken state-owned life insurer Asuransi Jiwasraya has property assets across Indonesia estimated to be worth IDR6.7tn ($466m). However, the insurer is finding it difficult to dispose of these assets.
Indonesia plans to close down embattled state life insurer Asuransi Jiwasraya and create a new company to settle outstanding claims, a move requiring state investment, the firm's chief executive yesterday, reported Reuters.
According to Fitch Ratings a recent string of defaults due to corporate governance failings in Indonesia's financial industry highlights governance remaining a major risk for creditors and investors.
Indonesia's life insurance industry posted premium income of IDR44.1tn ($3.1bn) in the first quarter of this year, a 4.9% decrease compared to the corresponding quarter last year, according to the Indonesian Life Insurance Association (AAJI).
The government has unveiled a new rule to guarantee working capital loans for micro, small and medium enterprises (MSMEs) in a bid to encourage banks to grant credit to these businesses whose operations have been heavily disrupted by the COVID-19 pandemic.