Insurance Business Prospects in Indonesia 2013

Insurance Business Prospects in Indonesia 2013

The number of insurers joint venture between foreign investors or joint venture with a local in the general insurance industry in 2013 will be more and more. according to Budi Herawan, head of statistics general insurance association of indonesia (AAUI), said as many as five foreign companies from the region have expressed interest in developing insurance business in indonesia.

The presence of the new players are going to extend the list of foreign investors in the indonesian insurance penetrated. according to budi, foreign companies from the region are from malaysia and singapore.
but he was reluctant to convey the identity of the company because the information is confidential. rachmatarwata isa, head of the insurance bureau of capital market supervisory agency and financial institution (BAPEPAM-LK) also shut this information.

Budi only whisper, the investor is already doing business in indonesia. they have a local partner, but not in insurance. local partners will facilitate the companys intentions insurance acquisition in indonesia. theyve expressed an interest to us, said budi

Julian Noor, executive director AAUI, adding the five companies had asked for input to the association. association only recommends that investors deal directly with the relevant insurers. with a variety of buy-sell process, julian estimates, regional investors that entered indonesia in 2013, but it is not known how many semesters.

Business potential
According to julian, there are two reasons for regional players interested in entering indonesia. first, the general insurance industry profits the last five years to grow positively. obviously, this is lured into a spur outside companies, especially investment climate in the country improves.

Second, the growth factor of the middle class. in fact, the same time the general insurance penetration is still a mini. based on data from the insurance bureau of (BAPEPAM-LK), general insurance penetration until the end of september is only 0. 46%. maybe they see the potential is huge, said julian.
As an illustration, in the third quarter of 2012 all premium of the general insurance industry reached rp 28. 96 trillion, up 14. 4% compared to the same period last year of rp 28. 55 trillion. the greatest contribution of motor vehicle insurance rp 8. 75 trillion to rp 7. 99 trillion in property insurance, personal accident insurance and health rp 3. 62 trillion. at the same time, the claim is only rp 11. 05%, growing 25. 9%.