Indonesia Insurance Market Intelligence: 2011 Edition
Indonesia’s insurance industry is mainly classified into life and non-life businesses, where life insurance comprises the maximum share of the whole industry. The Indonesian insurance industry has shown an increasing trend of growth and acceptance in the past few years mainly due to the rising level of education and increasing consumer awareness about the insurance benefits. The average premium expenditure per person has shown tremendous growth during 2002-2009. In the last few years, increased awareness of savings (demand for insurance products similar to bank deposit products) and risk protection among the consumers, higher income and increased level of education have helped drive the insurance segment, especially the life insurance business in Indonesia.
The Indonesian insurance industry has been highly competitive and the companies rely on innovation of the products and services in order to maintain and increase their respective shares in the overall market. As of June 2010, around 45 life insurance companies were licensed in Indonesia. Mega Life, Prudential Life (UK), and Sinar Mas Life were amongst the leading life insurers in 2009 and the leading non-life insurers include: Sinar Mas, Jasa Indonesia and Astra Buana, amongst others.
The Indonesian insurance industry has been highly competitive and the companies rely on innovation of the products and services in order to maintain and increase their respective shares in the overall market. As of June 2010, around 45 life insurance companies were licensed in Indonesia. Mega Life, Prudential Life (UK), and Sinar Mas Life were amongst the leading life insurers in 2009 and the leading non-life insurers include: Sinar Mas, Jasa Indonesia and Astra Buana, amongst others.
1. INDUSTRY SNAPSHOT
1.1. Industry Structure
1.1.1 Amendments in minimum capital requirement for insurance, Sharia insurance and reinsurance companies
1.1.2 Large Number of Market Participants in Indonesia Insurance Industry
1.1.3 Existence of Social health insurance
1.2. Market Overview
1.2.1. Market Size and Growth
1.2.1.1 Insurers witnessed rise in net profits due to improving economy
1.2.1.2 Demand for Life and Health Products to Drive the Market Growth
1.2.2 Market Segments
1.2.2.1 Life insurance segment exhibited higher growth than non-life in 2009
1.2.2.2 Rise in awareness on ULIPs, annuity and pension products led to growth in life premiums
1.2.2.3 Insurance firms focusing on increasing distribution channels
1.2.3 Market Density & Penetration
1.2.3.1 Lowest per capita expenditure on insurance IN South-East Asia
1.2.3.2 Insurance penetration rate remained constant over the period 2008-2009
1.2.4 Market Share
1.2.4.1 Introduction of new minimum capitalization likely to increase competition
1.2.4.2 Leading life insurer in 2009 was Mega Life; Sinar Mas remained top non-life insurer
2. INDUSTRY ANALYSIS
2.1 Industry Developments
New Regulations on Insurance
Joint Venture between CIMB Group and Sun Life Financial
Entry of Aviva in the Indonesian Market
2.2 Market Drivers
Innovation in Practice
Growing Per Capita GDP
Focus Towards Microinsurance
Capital Market Favoring Investment Gains to Insurers
Growing Sharia/Takaful Insurance Industry
3. COUNTRY ANALYSIS: RISK ASSESSMENT
3.1 Political Environment
3.2 Macro-economic Indicators: Current and Projections
4. INDUSTRY OUTLOOK: FORECAST AND PROJECTIONS
4.1 Growth expected from Sharia-compliant insurance industry (Takaful sector)
4.2 Investment-linked insurance products will continue driving premiums in future
1.1. Industry Structure
1.1.1 Amendments in minimum capital requirement for insurance, Sharia insurance and reinsurance companies
1.1.2 Large Number of Market Participants in Indonesia Insurance Industry
1.1.3 Existence of Social health insurance
1.2. Market Overview
1.2.1. Market Size and Growth
1.2.1.1 Insurers witnessed rise in net profits due to improving economy
1.2.1.2 Demand for Life and Health Products to Drive the Market Growth
1.2.2 Market Segments
1.2.2.1 Life insurance segment exhibited higher growth than non-life in 2009
1.2.2.2 Rise in awareness on ULIPs, annuity and pension products led to growth in life premiums
1.2.2.3 Insurance firms focusing on increasing distribution channels
1.2.3 Market Density & Penetration
1.2.3.1 Lowest per capita expenditure on insurance IN South-East Asia
1.2.3.2 Insurance penetration rate remained constant over the period 2008-2009
1.2.4 Market Share
1.2.4.1 Introduction of new minimum capitalization likely to increase competition
1.2.4.2 Leading life insurer in 2009 was Mega Life; Sinar Mas remained top non-life insurer
2. INDUSTRY ANALYSIS
2.1 Industry Developments
New Regulations on Insurance
Joint Venture between CIMB Group and Sun Life Financial
Entry of Aviva in the Indonesian Market
2.2 Market Drivers
Innovation in Practice
Growing Per Capita GDP
Focus Towards Microinsurance
Capital Market Favoring Investment Gains to Insurers
Growing Sharia/Takaful Insurance Industry
3. COUNTRY ANALYSIS: RISK ASSESSMENT
3.1 Political Environment
3.2 Macro-economic Indicators: Current and Projections
4. INDUSTRY OUTLOOK: FORECAST AND PROJECTIONS
4.1 Growth expected from Sharia-compliant insurance industry (Takaful sector)
4.2 Investment-linked insurance products will continue driving premiums in future
LIST OF CHARTS:
Indonesia Annual Insurance Premium: 2002-2009
Indonesia Nominal Growth Rate-Annual Premium: 2002-2009
Indonesia Insurance Premium Share (%) by Segment: 2009
Indonesia Insurance Premium by Segment: 2002-2009
Indonesia - Insurance Premium Growth by Segment: 2002-2009
Indonesia Insurance Density (US$): 2002 – 2009
Comparative Insurance Density Profile across World (US$): 2009
Indonesia Insurance Penetration: 2001 – 2009
Indonesia Major Life Insurers’ Market Share (%): 2009
Indonesia Major Non-Life Insurers’ Market Share (%): 2009
Per Capita Income: 2004 - 2009
Indonesian Life Insurance Investment Portfolio: 2009
Indonesian Life Insurance Investment Portfolio: 2008
Indonesian Takaful Insurance Investment Portfolio: 2009
Forecast: Indonesian Insurance Industry: 2009A - 2013F
Forecast: Indonesian Life & Non-Life Insurance Industry: 2008A - 2012F
Indonesia Annual Insurance Premium: 2002-2009
Indonesia Nominal Growth Rate-Annual Premium: 2002-2009
Indonesia Insurance Premium Share (%) by Segment: 2009
Indonesia Insurance Premium by Segment: 2002-2009
Indonesia - Insurance Premium Growth by Segment: 2002-2009
Indonesia Insurance Density (US$): 2002 – 2009
Comparative Insurance Density Profile across World (US$): 2009
Indonesia Insurance Penetration: 2001 – 2009
Indonesia Major Life Insurers’ Market Share (%): 2009
Indonesia Major Non-Life Insurers’ Market Share (%): 2009
Per Capita Income: 2004 - 2009
Indonesian Life Insurance Investment Portfolio: 2009
Indonesian Life Insurance Investment Portfolio: 2008
Indonesian Takaful Insurance Investment Portfolio: 2009
Forecast: Indonesian Insurance Industry: 2009A - 2013F
Forecast: Indonesian Life & Non-Life Insurance Industry: 2008A - 2012F
LIST OF TABLES:
Key Macroeconomic Indicators: 2009A – 2013F
Key Macroeconomic Indicators: 2009A – 2013F
