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Indonesian Non-life insurance premiums could jump 7.5% this year

  • Publish Date: Posted about 7 years ago

Non-life insurance premiums in Indonesia could grow by 7.5% this year if Indonesia's economic growth in 2017 reaches 5.2%, according to Julian Noor, executive director of the general insurance association of Indonesia (AAUI). The non-life market expanded 5.1% last year to IDR61.9 trillion (US$4.6 billion) in terms of premiums compared to 2015, reflecting the lowest growth rate over the last five years. GDP growth in Indonesia last year was 5.02% which was lower than had been forecast. Property insurance was the largest contributor to the growth of industry premiums with a premium income of IDR19.07 trillion in 2016, an increase of 7.9% compared to the previous year. This represented 30.8% of total non-life premiums. Motor insurance contributed 26.5% of the total general insurance premium income, representing the second largest class of business. 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. Julian indicated that this was due to sluggish sales of motor vehicles last year.