Insurance

Indonesia’s insurance sector stands out as the fastest growing and most promising in South-east Asia, within a region that’s largely seen as the most attractive for the world’s major underwriters. Supported by rapid economic expansion spurred by domestic consumption in the past decade, the sector has averaged a compound annual growth rate of 20% in gross written premiums and 26% in assets since 2007. Islamic insurance is expanding rapidly, with a 10-fold increase in contributions reported since 2010. Strong regulatory enforcement will be crucial to addressing low-penetration. If the long-awaited consolidation into better-capitalised underwriters is able to aid greater innovation in products and distribution channels, Indonesia’s current rapid growth should rise exponentially. This chapter includes an interview with William Kuan, President Director, Prudential Indonesia.