However, it cannot be ignored that the insurance penetration rate in Indonesia is only 3.06% by 2021. The low penetration rate also means a large market for the industry. In addition to exploring the development direction of insurance innovation by itself, Indonesia is also constantly influenced by the technology business model of China and the US.
Indonesia's insurance industry continues to decline in 2020 and 2021, before seeing a strong rebound in 2022. This growth is driven by strong economic recovery and increased frequency of extreme weather events, which have led to increased demand for natural disaster insurance products. According to the analysis, total premiums written in Indonesia show a fluctuating growth trend from 2018-2022, with a CAGR of 5.37% from 2018-2022. in 2022, total premiums written in Indonesia will be approximately USD 4.79 billion, an increase of 10.17% year-on-year.
According to the analyst, the market size of gross written premiums will reach US$ 8.58 billion in 2032 and the CAGR in 2023 to 2032 is 6.00%.
In Indonesia, life insurance is generally larger than general insurance, with general insurance coming in second. Property insurance is the largest type of general insurance, and the analyst expects it to account for 34.5% of general insurance premiums written in Indonesia by 2023. It is expected to grow at a CAGR of 8.6% from 2023-27. Growth in residential sector sales and the country's increased exposure to recurring NatCat events will drive growth in property insurance in the country.
According to the National Disaster Management Agency, Indonesia recorded 3,544 NatCat events in 2022, including 28 earthquakes, 1,531 flood events and 1,068 other extreme weather events. This resulted in 95,403 property damage events, including 20,205 events with severe property damage, and property insurers are expected to incur losses of IDR 2.2 trillion (US$147.4 million) in 2022.
Financial insurance is the second largest insurance category and is expected to account for 22.1% of general insurance premiums by 2023, followed by auto insurance, which the analyst expects to account for 17.7%. 25.7%.
Topics Covered
- Overview of the Indonesian Insurance Industry
- The Economic and Policy Environment of the Indonesian Insurance Industry
- What is the impact of COVID-19 on the Indonesian insurance industry?
- Indonesia Insurance Industry Market Size 2023-2032
- Analysis of major Indonesian insurance industry producers
- Key Drivers and Market Opportunities in Indonesia's Insurance Industry
- What are the key drivers, challenges and opportunities for the Indonesian insurance industry during the forecast period 2023-2032?
- Which companies are the key players in the Indonesian insurance industry market and what are their competitive advantages?
- What is the expected revenue of Indonesia insurance industry market during the forecast period of 2023-2032?
- What are the strategies adopted by the key players in the market to increase their market share in the industry?
- Which segment of the Indonesian insurance industry market is expected to dominate the market in 2032?
- What are the main negative factors facing the insurance industry in Indonesia?
Companies Mentioned
- Honda Motor Co.
Methodology
Background research defines the range of products and industries, which proposes the key points of the research. Proper classification will help clients understand the industry and products in the report.
Secondhand material research is a necessary way to push the project into fast progress. The analyst always chooses the data source carefully. Most secondhand data they quote is sourced from an authority in a specific industry or public data source from governments, industrial associations, etc. For some new or niche fields, they also "double-check" data sources and logics before they show them to clients.
Primary research is the key to solve questions, which largely influence the research outputs. The analyst may use methods like mathematics, logical reasoning, scenario thinking, to confirm key data and make the data credible.
The data model is an important analysis method. Calculating through data models with different factors weights can guarantee the outputs objective.
The analyst optimizes the following methods and steps in executing research projects and also forms many special information gathering and processing methods.
1. Analyze the life cycle of the industry to understand the development phase and space.
2. Grasp the key indexes evaluating the market to position clients in the market and formulate development plans
3. Economic, political, social and cultural factors
4. Competitors like a mirror that reflects the overall market and also market differences.
5. Inside and outside the industry, upstream and downstream of the industry chain, show inner competitions
6. Proper estimation of the future is good guidance for strategic planning.
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Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 60 |
| Published | May 2023 |
| Forecast Period | 2023 - 2032 |
| Estimated Market Value ( USD | $ 5.08 Billion |
| Forecasted Market Value ( USD | $ 8.6 Billion |
| Compound Annual Growth Rate | 6.0% |
| Regions Covered | Indonesia |
