JAKARTA (TheInsiderStories) – Indonesian general insurance and reinsurance income recorded Rp47.9 trillion (US$3.26 billion) during January to September (9M) of 2018, or grew 8.3 percent compared to the figure in the same period in 2017 Rp44.2 trillion, said the association.

Indonesian General Insurance Association Executive Director Dody Dalimunthe said on Thursday (11/22), the growth was in line with the economic growth in the third quarter of 2018, which amounted to 5.2 percent also growth in the financial sector and insurance services by 3.16 percent.

From the association data, several lines of general insurance experienced negative growth. First, is property insurance which grew negatively -6.4 percent and residential property sales growth which declined in 9M of 2018.

The insurance engineering’ grew also negative 6.7 percent, inline with the delay in the realization of several government projects.
Furthermore, the energy insurance grew -3.0 percent due to the increase in crude oil prices and the realization of investment in the oil drilling project in Indonesia was still very far from the target.

Meanwhile for other insurance, such as liability insurance and credit insurance experienced positive growth compared to the previous year. Liability insurance grew significantly 41.8 percent, which was driven by product development, liability and professional liability.

Positive growth also occurred in credit insurance which grew 36.2 percent. The driving factor for this growth was the government’s commitment to channel people’s business loans and bank credit growth of 12.69 percent in annual basis.

In contrast to the general insurance, reinsurance growth was only rose 1.5 percent or worth of Rp20.1 trillion in 9M of this year. The low claim occurred in some business lines.

Written by Staff Editor, Email: theinsiderstories@gmail.com