General Liability Insurance - Indonesia

The General Liability Insurance market market in Indonesia is expected to reach a projected market size (gross written premium) of US$193.10m in 2024.
The average spending per capita in the General Liability Insurance market market is estimated to be US$0.69 in 2024.
Looking ahead, the market is anticipated to experience an annual growth rate (CAGR 2024-2029) of 3.95%, resulting in a market volume of US$234.30m by 2029.
It is worth noting that when compared globally, the United States is expected to generate the highest gross written premium, amounting to US$178.4bn in 2024.
The demand for General Liability Insurance in Indonesia has been steadily increasing due to the country's growing economy and heightened awareness of risk management among businesses.

Definition:

General liability insurance is a type of coverage that offers protection to businesses and individuals against financial losses resulting from third-party claims of bodily injury, property damage, or personal injury. When you have general liability insurance, you pay regular premiums to an insurer, and in return, the insurer helps cover legal costs, settlements, and damages if you or your business are found liable for causing harm to others. This insurance is vital for shielding individuals and businesses from the financial repercussions of legal claims and liabilities arising from accidents or incidents that occur on their premises or as a result of their actions.

Additional information:

The market contains the following KPIs: gross written premium aggregated for all countries and regions, gross written premium per capita, and the share of insureds in the total population for over 50 countries.

Liability insurance booked for individuals and businesses

Motor vehicles liability
Aircraft liability
Liability for ships
Reinsurance

The General Liability Insurance market in Indonesia is witnessing significant growth and development. Customer preferences in the General Liability Insurance market in Indonesia are shifting towards comprehensive coverage that not only protects businesses from third-party claims but also covers a wide range of risks such as property damage, bodily injury, and legal expenses. Customers are increasingly looking for customized insurance solutions that cater to their specific industry needs and provide adequate protection against potential liabilities. Trends in the market show a growing demand for General Liability Insurance driven by the increasing awareness among businesses about the importance of risk management and financial protection. As Indonesian companies expand their operations and engage in more complex business activities, the need for comprehensive liability insurance coverage has become paramount. Additionally, regulatory changes and the enforcement of stricter compliance standards are encouraging businesses to invest in robust insurance policies to mitigate potential risks. Local special circumstances in Indonesia, such as the diverse business landscape and the prevalence of small and medium-sized enterprises (SMEs), play a significant role in shaping the General Liability Insurance market. SMEs form the backbone of the Indonesian economy, and as these businesses grow, they require adequate insurance coverage to safeguard their interests and assets. Moreover, the increasing focus on corporate governance and accountability is driving companies to prioritize liability insurance to protect their stakeholders and ensure business continuity. Underlying macroeconomic factors, including the country's steady economic growth, rising foreign direct investment, and expanding middle-class population, are contributing to the development of the General Liability Insurance market in Indonesia. As businesses become more interconnected in the global economy and face a myriad of risks, the demand for comprehensive insurance solutions is expected to continue growing. The insurance industry in Indonesia is responding to these trends by offering innovative products and services that address the evolving needs of businesses across various sectors.

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.

This report presents a comprehensive analysis and additional information on the Financial market, in a PDF format.

Both the number and cost of global risks are rising due to drivers, such as climate change and cyber crime, and these trends are impacting in the insurance industry. The global insurance market was worth almost six trillion U.S. dollars in 2022, but this looks set to increase substantially in the coming years. Cyber crime is consistently seen as a leading risk to global business by risk management experts. Meanwhile, the cost of natural disaster losses rose over the past two decades. These risks are likely to grow in the future, which will sustain the growth of the insurance sector.