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Fitch: Regulatory Changes to Shape Indonesian Insurance Industry
July 21, 2014 / 1:01 AM / in 3 years

Fitch: Regulatory Changes to Shape Indonesian Insurance Industry

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(The following statement was released by the rating agency) Link to Fitch Ratings' Report: Indonesia Insurance Market Dashboard 1H14 here BANGKOK/HONG KONG/SINGAPORE, July 20 (Fitch) Fitch Ratings says in a new report that Indonesia's life and non-life insurance sectors will be shaped by changing regulations that are aimed at greater transparency and stability for the industry. The implementation in 1Q14 of insurance tariff regulations could enhance stability in insurers' underwriting margin and ensure healthy bottom lines in the non-life sector are sustainable. In addition, upcoming planned changes to the regulations governing bancassurance could encourage greater disclosure and tighten the regulation of fee agreements between insurers and co-operating banks. The Indonesian insurance industry reported sound premium growth and posted favourable financial results in 2013, driven by manageable catastrophe losses. Fitch believes that exposure to catastrophe risks will remain a key challenge for insurers' underwriting profitability (mainly for non-life) as Indonesia continues to be a catastrophe-prone region. Steady industry growth is expected in the mid-term, underpinned by low penetration, improving risk awareness and rising population affluence. The report titled 'Indonesia Insurance Market Dashboard 1H14' is available at www.fitchratings.com or by clicking on the link above. Contacts: Cheryl Evangeline Associate Director +62 21 2988 6814 PT Fitch Ratings Indonesia DBS Bank Tower 24th Floor Suite 2403 Jl. Prof. Dr. Satrio Kav 3-5 Jakarta, Indonesia 12940 Thomas Ng Analyst +65 6796 7224 Jeffrey Liew Senior Director +852 2263 9939 Media Relations: Leslie Tan, Singapore, Tel: +65 67 96 7234, Email: leslie.tan@fitchratings.com; Wai-Lun Wan, Hong Kong, Tel: +852 2263 9935, Email: wailun.wan@fitchratings.com. Additional information is available at www.fitchratings.com. ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: here. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.

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