Life and Non-Life Insurance Market in Indonesia - Growth , Trends, COVID - 19 Impact, and Forecasts ( 2022 - 2027 )

The Indonesia Life and Non-life Insurance Market is Segmented by Insurance Type (Life, and Non-Life Insurance) and Distribution Channel (Direct, Agency, Banks, and Other Distribution Channels).

Market Snapshot

market-snapshot
Study Period: 2022-2027
Base Year: 2021
CAGR: >6 %

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Market Overview

Indonesia’s life and non-life insurance market is well-diversified and underpinned by solid capitalization, supporting a stable outlook assigned to the segment. Gross premium written (GPW) for credit insurance, the market’s third-largest business line, increased by 86.2% to IDR 14.6 trillion in 2019. Property insurance, the largest business segment, also posted solid GPW growth of 9.7% to IDR 20.9 trillion. However, motor insurance GPW recorded muted growth of 0.3%. Improved underwriting discipline continued rate increases, lower catastrophe risks, and an improving commercial and personal auto market in the first half of 2020. Moreover, these factors have led to strong underwriting success in the Indonesian property and casualty insurance industry.

The InsurTech sector has seen much technological and investment development over the past few years. Traditional insurance business lines, such as health, auto, and commercial, are being revolutionized by new digital-centric startups. New technologies, such as AI and IoT, have been re-architecting insurance data, the foundation of the insurance industry.

Scope of the Report

Life insurance provides a lump sum amount of sum assured at the time of maturity or in case of death of the policyholder. Non-life insurance policies offer financial protection to a person for health issues or losses due to damage to an asset. The Indonesian life and non-life insurance market is segmented by insurance type (life and non-life insurance) and distribution channel (direct, agency, banks, and other distribution channels).

By Insurance type
Life Insurance
Individual
Group
Non - Life Insurance
Home
Motor
Others
By Channel of Distribution
Direct
Agency
Banks
Other distribution channels

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Key Market Trends

Increase in GDP per Capita

GDP per capita is a measurement often used to determine economic growth and potential increases in productivity. It is calculated by taking the GDP and dividing it by the total population of the country. GDP per capita is a very important indicator of the economic strength of a country, and a positive change is an indicator of economic growth. The per capita income of Indonesia increased in recent years, and it is expected to increase further. The insurance density per capita in Indonesia is increasing year-by-year with the changing living standards and surged disposable income of the population. The insurance density is expected to grow by more than 5% in the forecast period.

t1

Lucrative Opportunities in the Insurance Landscape Owing to Lower Density of Life and Non-Life Insurance Per Capita

The Indonesian insurance sector is underperforming compared to the developed and emerging economies. Insurance penetration and density, which are the key performance indicators of the insurance industry, are especially low in Indonesia. Furthermore, there is a significant gap between insurance coverage and value, which highlights the high-risk state of the country. Since these vital parameters are improving at a stagnant growth rate, insurance penetration (measured as the ratio of the insurance premium paid and the GDP of the country) increased from approximately 5% in 2019 to 7-10% in 2021 in Indonesia.

Although this is a significant development, considering the volume of business, it lags the penetration levels in the rest of the world (6.13%) and in the emerging Asian economies (5.62%). The insurance sector has reported a consistent increase in insurance penetration year-by-year, which is expected to increase further in the future.

t2

Competitive Landscape

The Indonesian life and non-insurance market is semi-consolidated. The market is dominated by some local and international players in the market. The market is competitive, as the demand for life and non-life insurance highly increased post-COVID-19 pandemic due to increased awareness among people for insurance. Some of the top players in the market are Great Eastern Life Indonesia PT, GlobalSurance PT, ASURANSI RELIANCE INDONESIA, Asuransi Jasindo KC Bandar Lampung, and PT KB Insurance Indonesia. The market is expected to grow during the forecast period due to the increasing adoption of insurtech in the sector, with several merger and acquisition activities and other factors.

Recent Development

  • On January 11, 2022, one of the top players Great Eastern Life Indonesia, with Bank OCBC NISP's Sharia Business Unit, launched i-Great Heritage Assurance Service. With this service, Indonesians can carry out financial planning, especially inheritance preparation for families.
  • On October 8, 2021 , PT Asuransi Reliance Indonesia (ARI) signed a co-operation with PT Bank Pembangunan Daerah Banten Tbk (Bank Banten). This co-operation was signed with the aim that insurance products are very important for the safety and comfort of all parties. Lately, the public is also increasingly understanding the importance of insurance. The companies expect that this co-operation will benefit all parties, not only for ARI but also for Bank Banten and the customers.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Deliverables

    2. 1.2 Study Assumptions

    3. 1.3 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Overview

    2. 4.2 Market Drivers

    3. 4.3 Market Restraints

    4. 4.4 Porters 5 Force Analysis

      1. 4.4.1 Threat of New Entrants

      2. 4.4.2 Bargaining Power of Buyers/Consumers

      3. 4.4.3 Bargaining Power of Suppliers

      4. 4.4.4 Threat of Substitute Products

      5. 4.4.5 Intensity of Competitive Rivalry

    5. 4.5 Impact of COVID - 19 on the Market

  5. 5. MARKET SEGMENTATION

    1. 5.1 By Insurance type

      1. 5.1.1 Life Insurance

        1. 5.1.1.1 Individual

        2. 5.1.1.2 Group

      2. 5.1.2 Non - Life Insurance

        1. 5.1.2.1 Home

        2. 5.1.2.2 Motor

        3. 5.1.2.3 Others

    2. 5.2 By Channel of Distribution

      1. 5.2.1 Direct

      2. 5.2.2 Agency

      3. 5.2.3 Banks

      4. 5.2.4 Other distribution channels

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Market Overview ( Concentration and Key Players )

    2. 6.2 Company Profiles

      1. 6.2.1 Great Eastern Life Indonesia. PT

      2. 6.2.2 GlobalSurance

      3. 6.2.3 PT. Asurani Reliance Indonesia

      4. 6.2.4 Asuransi Jasindo KC Bandar Lampung

      5. 6.2.5 PT KB Insurance Indonesia

      6. 6.2.6 PT. Tokio Marine Life Insurance Indonesia

      7. 6.2.7 Fistlight Indonesia

      8. 6.2.8 Willis Indonesia Insurance Brokers

      9. 6.2.9 ACE Insurance Indonesia*

    3. *List Not Exhaustive
  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

  8. 8. DISCLAIMER AND ABOUT US

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Frequently Asked Questions

The Indonesia Life & Non-Life Insurance Market market is studied from 2022 - 2027.

The Indonesia Life & Non-Life Insurance Market is growing at a CAGR of >6% over the next 5 years.

Great Eastern Life Indonesia. PT, GlobalSurance, PT. ASURANSI RELIANCE INDONESIA, Asuransi Jasindo KC Bandar Lampung, PT KB Insurance Indonesia are the major companies operating in Indonesia Life & Non-Life Insurance Market.

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