The Indonesian Life Sector Market is Currently 35% Larger Than the Non-Life Sector and Continues to Grow at a Faster Rate
DUBLIN--(Business Wire)--
Research and Markets
(http://www.researchandmarkets.com/research/e0c01a/indonesia_insuranc)
has announced the addition of the "Indonesia Insurance Report Q2 2008"
report to their offering.
The Indonesia Insurance Report provides independent forecasts and
competitive intelligence on Indonesia's insurance industry.
As was the case in Q108, the main focus of this report is BMI's
proprietary Insurance Business Environment Rating (IBER). The rating
brings together a number of pieces of relevant quantitative data,
together with BMI's Country Risk Rating (CRR). The IBER makes it
easier for the insurance sector business environment in a particular
country to be compared with the business environment for any other
BMI-monitored industry in that country. The IBER also allows an
objective and meaningful comparison of the insurance sector business
environment between countries. Over the coming months, we will
substantially change the format of the BMI insurance reports. In
essence, we will focus to a much greater extent on the companies that
are active in the non-life and life segments.
Indonesia's IBER is 50.7. On this measure Indonesia is a
medium-sized insurance market for foreign companies. In relation to
other countries in the region, Indonesia continues to lag - especially
in the areas of structure, regulatory framework and risk. It is
further hampered by the high level of political volatility, the lack
of reliability in the legal process, and the opaque nature of the
bureaucracy; all of these factors drag on the overall rating.
Over the forecast period, we anticipate that non-life premiums
will grow by 13% annually in local currency terms and by 15% in US
dollar terms. Life premiums are expected to increase by 15% annually
in local currency terms and by 17% in US dollar terms. The key drivers
of growth in the non-life segment in 2007-2012 are the anticipated
rise in nominal GDP from around US$422bn to US$592bn and an expected
increase in non-life penetration from 0.60% of GDP to 0.85%. The key
driver of growth in the life segment is the envisaged rise in life
density from US$16.75 per capita in 2007 to US$35.00 per capita in
2012. Over the same period, Indonesia's population will grow from
228mn to 241mn.
The competitive landscape, in both the non-life and the life
segment, is fragmented. Both segments are open to participation by
foreign groups. There are a number of local firms but no single firm
dominates in either the life or non-life sectors. Although many of
these firms remain quite small, they have demonstrated their
resilience by surviving the ongoing political and economic turmoil
that has constituted much of Indonesia's recent past. The market is
comparatively open to new entrants and a number of the major
multinational firms are represented in both sectors.
Indonesia's non-life segment is dominated by motor vehicle
insurance - accounting for 45% of total premium income - and
property/fire, which accounts for another 20%. By international
standards, the overall non-life market is small, but growing, and we
consider it to have significant long-term potential. A number of major
international insurers appear to share the view that, while not
especially attractive at present, the prospective market size makes it
simply too big to ignore. Currently the life sector is 35% larger than
the non-life sector and continues to grow at a faster rate.
Key Topics Covered:
- The Sector at a Glance
- Table: Overview of Indonesia's Insurance Sector
- Key Insights on the Indonesian Insurance Sector
- SWOT Analysis
- Indonesia Industry SWOT
- Future Development of BMI's Insurance Reports
- Latest News
- Projections and Forecasts
- Table: Premiums - Historical Data and Forecasts
- Projections and Drivers of Growth
- Table: Growth Drivers
- Country Update
- Macroeconomic Outlook
- Table: Indonesia - Economic Activity
- Country Outlook
- Insurance Business Environment Rating
- Table: Indonesia - Insurance Business Environment Indicators
- Table: Asia Pacific Insurance Business Environment Rankings
- Regional Context
- Table: Non-Life Premiums in a Regional Context, 2007
- Table: Life Premiums in a Regional Context, 2007
- Table: Comparison of Major Lines as % Non-Life Premiums, 2006
- Analysis of Competitive Conditions
- Indonesia - Non-Life Segment
- Table: Presence of Cross-Border Insurers, Non-Life
- Indonesia - Life Segment
- Table: Presence of Cross-Border Insurers, Life
- Methodology
- Basis of Projections
- Insurance Business Environment Rating
- Table: Insurance Business Environment Indicators and Rationale
- Table: Weighting Of Indicators
For more information visit
http://www.researchandmarkets.com/research/e0c01a/indonesia_insuranc
Research and Markets
Laura Wood
Senior Manager
press@researchandmarkets.com
Fax from USA: 646-607-1907
Fax from rest of the world: +353-1-481-1716
Copyright Business Wire 2008
