Strong growth in Indonesia’s new vehicle sales in recent years has generated sustained growth in the motor segment. “Car sales have been increasing and in turn motor vehicle insurance has been growing rapidly,” Christian Wanandi, the president director of Jakarta-based general insurance company Asuransi Wahana Tata, told OBG. Yet motor’s share of...
With limited local underwriting capacity, larger risks have traditionally been ceded offshore. The limited capacity of the four local reinsurers has stunted efforts to domesticate more risk, leading to volatile rates. Consolidating and developing reinsurance capacity will thus be crucial to future efforts to develop the industry, while higher...
While life insurance has outperformed the overall market, both domestically and regionally, for a decade, heavy reliance on investment-linked products reveals the sector’s bias towards savings rather than outright protection. A sustained inflow of foreign underwriters, who now dominate the sector, has highlighted the segment’s strong growth...
The country’s insurance sector stands out as the fastest growing and most promising in South-east Asia, even within a region widely seen as the most attractive for the world’s major underwriters. Supported by rapid economic growth spurred by domestic consumption in the past decade, the sector has averaged compound annual growth of 20% in gross...
The country has been one of the region’s early adopters of a risk-based capital (RBC) regulatory framework, since 2005. Despite improvements in risk weightings, however, the industry still suffers a significant gap across players in terms of risk management processes, with larger local and foreign players in line with international best practices...
The world’s fourth-largest population, a very low insurance penetration rate and strong prospects for growth are proving a draw for foreign investors eyeing Indonesia’s insurance market. Higher caps on foreign ownership than elsewhere in Asia – 80% of an underwriter’s equity, compared to 49% in Thailand and 26% in India – add to the appeal. With the...
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