(MENAFNEditorial)
The under-penetrated nature of the insurance sector offers tremendous growth potential for firms over the coming years bolstered by the country's young demographics and rising middle class consumers. Furthermore the retention of the 80% foreign ownership cap in the sector will allow for greater M&A activity to take place in the next few years as more foreign firms look to enter the market.
Indonesia's insurance market offers enormous potential for growth. With a population of around 250mn (expected to increase to 264mn by 2018) and low insurance penetration rates many local and international insurers have recognised the opportunity and aggressively expanded into the Indonesian insurance market in recent years. We expect steady economic growth to underpin the expansion of the insurance market over the coming years.
Full Report Details at
- http://www.fastmr.com/prod/957421_indonesia_insurance_report_q2_2015.aspx?afid=101
In 2015 we forecast gross premiums growth to accelerate to 3.2% in USD terms to USD19.8bn on the back of our Country Risk team's forecast for a pickup in economic growth. Over the 2016-2019 period we forecast gross premiums to grow at an annual average of 11.1% (in USD terms) to hit USD30.1bn by 2019. A larger proportion of this growth will come from the life sector due to the entrenched nature of life insurance as a conduit for savings. Furthermore poor state provision of both medical and retirement benefits mean that households that can afford individual cover and savings products are highly inclined to do so. However the non-life segment will also expand over this period - albeit at a smaller pace - on the back of steady growth in auto sales as well as the rollout of universal health coverage.
Additionally while the retention ratio of Indonesia's insurance sector is at 69.0% currently we expect it to remain roughly constant over the coming years as the life sector which accounts for 75.0% of the sector remains generally well-capitalised and will therefore have stable reinsurance needs over the coming years. However the...
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.
Key Benefits
* 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).
Coverage
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.
BMI Industry Forecasts
Historic data series (2005-2014) and forecasts to end-2019 for key industry indicators supported by explicit assumptions plus analysis of key risks to the main forecasts. Indicators include:
* Life/non-life Premiums: Total premium growth (USDmn) premium growth (% y-o-y) penetration (% of GDP) density (USD per capita) for Life and Non-Life sectors claims reinsurance and assets and liabilities.
* Non-life subsectors: Data on gross written premiums for all major Non-Life segments (motor transport property personal accident health general liability and credit financial).
BMI’s Insurance Risk Reward Index
BMI’s Risk Reward Indices provide investors (Life and Non-Life) looking for opportunities in the region with a clear country-comparative assessment of a market’s risks and potential rewards. Each of the country markets are scored using a sophisticated model that includes more than 40 industry economic and demographic data points to provide an indices of highest to lowest appeal to investors with each position explained.
Company Profiles*
Examines the competitive positioning and short- to medium-term business strategies of key industry players. The latest financial and operating statistics and key company developments are also incorporated within the company profiles enabling a full evaluation of recent company performance and future growth prospects.
Growth Drivers & Risk Management Projections
Key data and forecasts to end-2019 focusing on the growth drivers and downside risks to specific insurance lines including:
* Population: Male/female by age group active/pensionable/youth population % of total urban/rural population % of total.
* Freight: Tonnage – air freight rail freight road freight inland waterway.
* Motor: Fleet size by type of vehicle % change y-o-y.
* Epidemiology: Disease Adjusted Life Years and private health expenditure.
Market Overview & Rankings
Illustration of the insurance industry via rankings tables comparing gross written premiums by company (USDmn) and market share (%) for the top 20 players in both Life and Non-Life. This chapter also includes in-depth regional analysis of the market position business strategies and investment potential of the leading insurance companies.
Sources
The insurance Reports draw on an extensive network of primary sources such as multilateral organisations government departments industry associations chambers and company reports.
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