Property Insurance - Indonesia | Statista Market Forecast

The Property Insurance market market in Indonesia is expected to witness significant growth in the coming years.
According to projections, the market size, measured by gross written premium, is projected to reach US$1.39bn in 2024.
This indicates a positive trend in the demand for Property Insurance market in the country.
Furthermore, the average spending per capita in the Property Insurance market market is estimated to be US$4.97 in 2024.
This figure provides insights into the level of individual expenditure on Property Insurance market in Indonesia.
Looking ahead, the gross written premium is anticipated to exhibit a steady growth rate, with a Compound Annual Growth Rate (CAGR) of 3.69% from 2024 to 2029.
By 2029, the market volume is projected to reach US$1.67bn, indicating a strong expansion of the Property Insurance market market in Indonesia.
In a global context, it is noteworthy that the United States is expected to generate the highest gross written premium in 2024, amounting to US$240.4bn.
This highlights the significant presence and dominance of the United States in the global Property Insurance market market.
As in Indonesia continues to develop and expand its economy, the Property Insurance market market presents a lucrative opportunity for insurers and investors to tap into this growing market segment.
With the projected growth in market size and per capita spending, it is evident that Property Insurance market is becoming increasingly important for individuals and businesses in Indonesia.
The property insurance market in Indonesia is experiencing significant growth due to increasing urbanization and infrastructure development.

Definition:

The property insurance market encompasses insurance products that protect individuals and businesses from financial losses related to damage or loss of property, such as homes, commercial buildings, or personal belongings. Policyholders pay regular premiums to insurance providers, and in return, these insurers offer coverage for events like fire, theft, natural disasters, and other property-related risks. Property insurance is crucial for safeguarding assets and providing financial assistance to repair or replace property damaged or lost due to covered incidents.

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.

Insurance for all damage or loss of property caused by fire and natural forces
Insurance for all damage or loss of property caused by crime

All other insurance types, such as life insurance and health insurance
Reinsurance

Indonesia, known for its diverse culture and beautiful landscapes, has seen significant growth in its Property Insurance market in recent years.

Customer preferences: Customers in Indonesia are increasingly recognizing the importance of protecting their properties against unforeseen events such as natural disasters, fires, and theft. As more individuals and businesses seek to safeguard their assets, the demand for Property Insurance has been on the rise.

Trends in the market: One notable trend in the Indonesian Property Insurance market is the shift towards digital channels for purchasing insurance policies. With the increasing penetration of smartphones and the internet, customers now prefer the convenience of buying insurance online. This trend has led to the emergence of Insurtech companies offering innovative digital solutions to cater to the evolving needs of the market.

Local special circumstances: Indonesia is prone to natural disasters such as earthquakes, tsunamis, and volcanic eruptions due to its location on the Pacific Ring of Fire. As a result, property owners in the country face higher risks compared to other regions. This unique environmental factor has contributed to the growing awareness and uptake of Property Insurance among Indonesians.

Underlying macroeconomic factors: The steady economic growth in Indonesia has boosted the purchasing power of its population, leading to an increase in property ownership. As more individuals acquire homes and commercial properties, the demand for Property Insurance as a means of protecting these assets has correspondingly expanded. Additionally, favorable government regulations and initiatives have further supported the growth of the Property Insurance market in Indonesia.

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.

Berkshire Hathaway, State Farm, and Progressive Corp are just some of the biggest property and casualty insurance companies in the world - all of which hail from the United States. Property and casualty insurance is a type of insurance which covers risks related to loss or damage of property. This type of insurance has two major areas: protection of physical objects and protection against legal liability. In total, the value of gross premiums written by the U.S. property and casualty insurance sector exceeded 850 billion U.S. dollars in 2022. In the same year, 35 percent of the U.S. P&C premiums were written by private passenger auto insurance companies.