Non-life insurances - Indonesia | Statista Market Forecast

The Non-life insurance market in Indonesia is expected to witness significant growth in the coming years.
By 2024, the market size, as measured by gross written premium, is projected to reach US$5.62bn.
This indicates a positive trend in the demand for non-life insurance products in the country.
Furthermore, the average spending per capita in the Non-life insurance market is estimated to be US$20.08 in 2024.
This figure showcases the level of individual investment in insurance coverage, reflecting the importance placed on protecting personal assets and mitigating financial risks.
The gross written premium is anticipated to exhibit a Compound Annual Growth Rate (CAGR) of 3.60% from 2024 to 2029.
This steady growth trajectory is expected to result in a market volume of US$6.71bn by 2029.
Such growth signifies a positive outlook for the Non-life insurance sector in Indonesia, indicating the increasing awareness and importance of insurance products among the population.
In a global context, it is noteworthy that the United States is expected to generate the highest gross written premium in the Non-life insurance market, amounting to US$2.5tn in 2024.
This highlights the significant market size and dominance of the United States in the global insurance landscape.
Overall, Indonesia's Non-life insurance market is poised for growth, with increasing market size and per capita spending, indicating a growing demand for insurance products in the country.
The non-life insurance market in Indonesia is experiencing rapid growth due to increasing awareness and demand for coverage against natural disasters.

Definition:

Non-life insurance, also known as general insurance, covers a wide range of insurance products that protect against financial losses related to events other than death. Non-life insurance is designed to provide policyholders with financial support and protection in various circumstances, like car accidents, property damage, and medical expenses.

Structure:

The non-life insurance market covers the following insurance types: health, motor vehicles, property, general liability, and legal.

Additional information:

The market contains the following KPIs: gross written premium aggregated for all countries and regions, gross written premium per capita, gross claim payments, and the loss ratio – calculated as gross claim payments divided by gross written premium.

Health insurances
Motor Vehicle insurances
Property insurances
General Liability insurances
Legal insurances

Live insurances
Other non-live insurances, such as travel insurance, freight insurance, and accident insurance
Reinsurance

The Non-life insurances market in Indonesia is experiencing significant growth and development.

Customer preferences: Customers in Indonesia are increasingly valuing insurance products that provide comprehensive coverage at affordable prices. They are looking for policies that cater to their specific needs, such as motor vehicle insurance, property insurance, and health insurance. The rising awareness of the importance of insurance coverage for protection against unforeseen events is driving the demand for non-life insurance products in the country.

Trends in the market: One of the notable trends in the non-life insurance market in Indonesia is the increasing adoption of digital channels for purchasing insurance policies. Insurers are leveraging technology to reach a wider customer base and provide convenient and efficient services. Additionally, there is a growing trend towards customization of insurance products to suit individual preferences and requirements. This trend is shaping the competitive landscape as insurers strive to differentiate themselves by offering unique and tailored solutions to customers.

Local special circumstances: Indonesia's geographical and demographic diversity present unique challenges and opportunities for the non-life insurance market. The country's archipelagic nature means that certain regions are more prone to natural disasters, such as earthquakes and floods. As a result, there is a higher demand for property and disaster insurance in these areas. Moreover, the increasing urbanization and middle-class population are driving the demand for various insurance products, including motor vehicle and health insurance.

Underlying macroeconomic factors: The economic growth and stability in Indonesia are playing a crucial role in the expansion of the non-life insurance market. As the economy continues to grow, disposable incomes are rising, leading to an increase in purchasing power among the population. This, coupled with a growing awareness of the need for financial security, is fueling the demand for non-life insurance products. Additionally, regulatory reforms and initiatives to promote insurance penetration in the country are creating a conducive environment for the development of the market.

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.