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July 21 (The following statement was released by the rating agency)
Fitch Ratings in a report said that the latest sector life insurance and general insurance in Indonesia will grow by proliferation of regulatory changes aimed at improve the transparency and stability of the industry.
Application of regulations on insurance rates can increase stability 1Q14 insurance underwriting margin and ensure a healthy income in the sector general insurance on an ongoing basis. In addition, the changes that will come as bancassurance regulations can encourage disclosure (disclosure) a more complete and tighten regulation costs agreement between the parties insurance and bank partners.
Indonesian insurance industry reported a healthy premium growth and record good financial results in 2013, driven by a natural disaster losses controlled. Fitch believes that the exposure to the risk of natural disasters will remain a major challenge for the insurance industry underwriting profitability (especially for general insurance) because Indonesia remains prone areas natural disasters. Stable industrial growth is expected in the medium term, supported by low insurance penetration, increased risk awareness and increasing prosperity of the population.