Market Size of Indonesia Motor Insurance Industry
| Study Period | 2021 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2021 - 2022 |
| CAGR | < 6.00 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Need a report that reflects how COVID-19 has impacted this market and its growth?
Indonesia Motor Insurance Market Analysis
The Indonesia Motor Insurance Market is expected to register a CAGR of not more than 6% for the study period.
The impact of COVID-19 on motor insurance was mixed. Bank Indonesia dropped its interest rates to record lows of 3.50% in reaction to the pandemic's economic impact, and it was projected to stay at this level for the foreseeable future. Interest rate risk was a concern for insurers due to investment leverage, product guarantees, and policyholder options. Insurers with a longer tenure of obligations than assets and a strong exposure to negative convex bonds, whose prices do not rise as much as other bonds when interest rates fall, were the most vulnerable to these changes. The Indonesian General Insurance Association, or AAUI, projects that the performance of motor vehicle insurance will slow this year, despite positive achievements in the first quarter. The COVID-19 pandemic had a considerable impact on motor vehicle insurance performance this year, including other general insurance business lines. The decline in people's purchasing power due to COVID-19 also hit the performance of motor vehicle insurance. It was also feared that this condition would reduce government spending on insurance protection.
This property business line recorded the largest market share in the general insurance industry. The motor business line, credit insurance, personal accident insurance, and marine cargo are all listed beneath it. However, there has been a downward trend in motorized vehicles since the beginning of the year. The Association of Indonesian Automotive Industries (GAIKINDO) recorded sales of two-wheeled vehicles in the 2nd quarter of 2022 of 2.24 million units, down 8.3 percent (yoy) from the second quarter of 2021 of 2.45 million units. where four-wheeled vehicles have increased by 20.0 percent year on year. In the second quarter of 2022, the number of cars sold reached 4,65,252 units, an increase from the second quarter of 2021, when it reached 3,87,844 units.
