JAKARTA (TheInsiderStories) – Indonesian General Insurance Association predicts that general insurance premiums could grow 10 percent this year to Rp 77 trillion (US$5.5 billion), from 2018 recorded Rp69.9 trillion.
Executive Director of the Association, Dody Dalimunthe told TheInsiderStories, the premium growth was in line with the economic growth targeted by the government. He noted, the property insurance and motorcycle insurance will still be the biggest contributor to national premiums.
Several business lines also are predicted to rise, such as credit, transportation, engineering and various insurance. In 2018, general insurance premium income was recorded at Rp69.9 trillion, growing 9.8 percent compared to 2017 worth of Rp 63.6 trillion.
Of the 13 lines of general insurance, there are three lines of insurance that recorded negative growth, which are ship frame insurance that grew negatively 1.4 percent to Rp1.6 trillion, energy insurance grew negatively 7.9 percent to Rp1.5 trillion and accident insurance grew negative 5.6 percent to Rp2.1 trillion.
While the rest grew positively with the highest growth in credit insurance 52.2 percent to Rp7.86 trillion and miscellaneous insurance 25.1 percent to Rp3.33 trillion.
In terms of claims, general insurance recorded Rp30.1 trillion in 2018, increase of 8.1 percent year on year. The increasing of claims occur in almost all insurance business lines, but the five business lines, namely transportation insurance, ship frame insurance, energy insurance, engineering insurance and liability insurance recorded a decrease in claims.
The amount of premium growth compared to claims results in a declining claim ratio, from 43.5 percent in 2017 to 43.2 percent in 2018. Furthermore, in the general reinsurance industry, premium growth was recorded at Rp14.18 trillion, increase of 17.9 percent year on year. While in terms of claims, it increased 14.6 percent to Rp4.81 trillion.
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