Insurances - Indonesia

Indonesia

The Insurances market in Indonesia is expected to reach a projected market size (gross written premium) of IDR US$18.71bn in 2024.
Life insurances dominate the market with a projected market volume of IDR US$13.09bn in 2024.
The average spending per capita in the Insurances market is estimated to be IDR US$66.86 in 2024.
When compared globally, the United States is expected to have the highest nominal value, reaching US$3,788.0bn in 2024.
The gross written premium is anticipated to show an annual growth rate (CAGR 2024-2029) of 0.88%, resulting in a market volume of IDR US$19.55bn by 2029.
In global comparison, the United States is projected to generate the highest gross written premium in 2024, amounting to US$3,788.0bn.
Insurance companies in Indonesia are leveraging digital technologies to streamline their processes and provide more personalized services to customers.

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Analyst Opinion

In recent years, the Insurances market in Indonesia has shown significant growth and development.

Customer preferences: Customers in Indonesia are increasingly seeking insurance products that offer comprehensive coverage at affordable prices. With a growing middle class and increasing awareness about the importance of insurance, there is a rising demand for a variety of insurance products such as health, life, and property insurance.

Trends in the market: One of the key trends in the Indonesian insurance market is the shift towards digitalization. Insurance companies are investing in online platforms and mobile apps to make it easier for customers to purchase and manage their insurance policies. Additionally, there is a trend towards offering more customized insurance products to cater to the specific needs of different customer segments.

Local special circumstances: In Indonesia, the government has been implementing regulations to promote the growth of the insurance industry. Mandatory insurance requirements for certain sectors, such as healthcare and motor vehicles, have contributed to the expansion of the market. Moreover, the increasing focus on microinsurance products tailored for low-income individuals has opened up new opportunities for insurance companies to reach underserved populations.

Underlying macroeconomic factors: The growth of the Indonesian economy, coupled with a stable regulatory environment, has been conducive to the development of the insurance market. As disposable incomes rise and financial literacy improves, more Indonesians are recognizing the importance of insurance as a means of financial protection. Additionally, the country's young population and high urbanization rate provide a favorable demographic landscape for the insurance industry to thrive.

Methodology

Data coverage:

Data encompasses B2B and B2C enterprises. Figures are based on gross written premium, gross written premium per capita, gross claim payments, loss ratio, and distribution channels.

Modeling approach / Market size:

Market sizes are determined by a Bottom-Up approach, based on a specific rationale for each market layer. As a basis for evaluating markets, we use industry associations, national statistic offices, and international organizations, such as OECD. Next we use relevant key market indicators and data from country-specific associations such as insurance consumer spending, gross domestic product, insurance - consumer price index (CPI), population growth. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. For example, exponential trend smoothing and HOLT-linear. The main drivers are insurance consumer spending and insurance - consumer price index (CPI).

Additional Notes:

The market is updated twice per year in case market dynamics change. The impact of the COVID-19 pandemic is considered at a country-specific level.