Boston, MA -- (SBWIRE) -- 06/26/2014 -- As of mid-2014, the latest data from the insurers highlights the dynamism of Indonesia's insurance sector. Initiatives by the government and the companies themselves are boosting th e importance of life insurance at a time that the general economic and social trends are favourable. As we had foreseen, competition in the market for motor insurance has constrained the growth of premiums (and underwriting profits). However, the rapid expansion in the number and value of insurable risks - in a country that it notorious for natural catastrophes - should ensure that the non-life segment benefits from organic growth.
It is clear that companies in both major segments are being innovative in terms of their products and the ways in which those products are being distributed. As is the case in other parts of the region, leading players are leveraging bancassurance relationships and affinity marketing - but are working hard to improve the productivity of networks of agents (be they tied or independent).
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Looking forward, we think that continuing competition in the market for motor insurance (and other basic household lines) will constrain profitability and premium growth. Nevertheless, the non-life segment should continue to achieve very respectable real growth in premiums through the forecast period.
- Volatility in financial markets in late 2013 curbed the growth of sales of investment-linked products in the life insurance segment.
- Overall, though, life premiums have been growing strongly and are expected by the trade association to continue to rise by 20-30% annually through the forecast period.
- The development of life insurance is being driven by 'demand-related' factors (such as greater understanding of the benefits) and 'supply-related' factors (such as the development by the life insurers of attractive new products).
- Leading life insurance players are boosting the sizes and productivity of their agency forces and are leveraging...
The Indonesia Insurance Report has been researched at source and features Business Monitor International (BMI)'s independent assessment and forecasts for the insurance sector. It examines industry developments, key growth drivers and risk management projections, including the macroeconomic situation, government policy, regulatory environment and the level of development and potential for growth, broken down by line. Leading insurers are profiled, covering premiums, products and services and competitive positioning.
BMI's Indonesia Insurance Report provides professionals, consultancies, government departments, regulatory bodies and researchers with independent forecasts and regional competitive intelligence on the Indonesian insurance industry.
- Benchmark BMI's independent insurance industry forecasts for Indonesia to test other views - a key input for successful budgeting and strategic business planning in Indonesia's insurance market.
- Target business opportunities and risks in Indonesia through our reviews of latest industry trends, regulatory changes and major deals, investments and macroeconomic developments.
- Exploit latest competitive intelligence on your competitors, partners and clients via our Company Profiles (inc. SWOTs, KPIs and latest activity).
BMI Industry View
Summary of BMI's key industry forecasts and views, covering the Life and Non-Life segments, the evolving competitive landscape and business operational risks.
Industry SWOT Analysis
Analysis of the major Strengths, Weaknesses, Opportunities and Threats within the insurance sector and within the broader political, economic and business environment.
Individual analysis of both Life and Non-Life insurance sector developments and prospects across developed states and emerging markets - supported by BMI's global industry growth forecasts. This is followed by an in-depth evaluation of region- and country-specific trends, focusing on BMI's country-by-country market growth data.
Business Environment Ratings
BMI's Insurance Business Environment Ratings provide a country-comparative Risk-Reward Ratings index aimed at investors (Life and Non-Life) in the insurance market.
The ratings methodology makes sophisticated use of over 40 industry, economic and demographic data points and is part of BMI's integrated Country Risk-Industry Ratings products.
BMI Industry Forecasts
Historic data series (2008-2012) and forecasts to end-2018 for key industry and economic indicators (see list below) supported by explicit assumptions, plus analysis of key risks to the main forecasts. Indicators include:
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