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Indonesia Insurance Report Q2 2016

Indonesia Insurance Report Q2 2016

BMI View: The positive structural trends of Indonesia's insurance sector remain in place. Although theslowing of the economy and the political environment (in particular the lack of progress with reform)appears to have had an adverse impact on life insurance premiums written, many of the companies areachieving good and profitable growth by other metrics. Interestingly, the economic slowdown appears tohave had little impact on the motor vehicle insurance and property insurance sub-sectors of the non-lifesegment.

Key Updates and Forecasts

The economic slowdown, and the lack of progress by the government with reforms, has weighed onconsumer sentiment. Volatile markets have reduced the appeal of a number of the life insurers' mutualfunds and other wealth management offerings. Data from the regulator and from the companies suggestthat the risks to our estimates/projections for life insurance premiums in 2015-17 are to the downside.

Nevertheless, several of the leading insurers have achieved strong and profitable growth by other metrics.

The latest data from the regulator suggests that the economic slowdown - perhaps surprisingly - has hadlittle adverse impact on the non-life segment and, in particular, the important motor vehicle and propertysub-sectors. The implication is that the non-life insurers are benefiting from further growth in the numberof vehicles on Indonesia's roads and increasing numbers and values of insurable risks. It also appearsthat, in spite of the fragmentation of the marketplace, the lack of scale of many of the players anddownwards pressure on prices globally, pricing has remained disciplined.


BMI Industry View
Table: Headline Insurance Forecasts (Indonesia 2013-2020)
SWOT
Insurance
Industry Forecast
Life Premiums Forecast
Table: Life Premiums (Indonesia 2013-2020)
Table: Life Insurance Claims (Indonesia 2008-2014)
Non- Life Premiums Forecast
Table: Non-Life Premiums (Indonesia 2013-2020)
Table: Non-Life Insurance Claims (Indonesia 2009-2014)
Non- Life Sub-Sector Forecast
Table: Non-Life Insurance Premiums by Product Line (Indonesia 2013-2020)
Industry Risk Reward Ratings
Asia Pacific Industry Risk/Reward Index
Table: Asia Pacific Insurance Risk/Reward Index Q216
Market Overview
Life Market Overview
The Product Offering
The Competitive Landscape
Table: Life Insurance Premiums (USDmn), 2008-2013
Non-Life Market Overview
The Product Offering
The Competitive Landscape
Table: Non-Life Market Shares 2009-2014
Table: Non-Life Insurance Premiums (USDmn), 2008-2014
Company Profile
AIA Group
Allianz
AXA
Manulife Financial
Prudential plc
Methodology
Industry Forecast Methodology
Risk/Reward Index Methodology
Table: Indicators
Table: Weighting of Indicators

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