The Indonesia Insurance Report Provides Independent Forecasts and Competitive Intelligence...

Mon Apr 14, 2008 9:00pm EDT

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The Indonesia Insurance Report Provides Independent Forecasts and Competitive Intelligence on Indonesia's Insurance Industry

DUBLIN, Ireland--(Business Wire)--
Research and Markets
(http://www.researchandmarkets.com/reports/c88647) has announced the
addition of "Indonesia Insurance Report Q1 2008" to their offering.

This report differs from its predecessors in that it includes
BMI's 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). It is now much easier to
consider the business environment for the insurance sector in any one
country relative to the business environment for other industries in
that country that are surveyed by BMI, and the business environment
for the insurance sector in other countries.

Indonesia's IBER is 50.7. On this measure Indonesia is ranked 11th
of the 15 countries in Asia surveyed by BMI. Relative to the more
highly ranked countries in Asia, Indonesia lags especially in the
areas of structure, regulatory framework and risk. The level of
political volatility, the lack of reliability in the legal process and
the opaque nature of the bureaucracy all 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 none holds a
dominating position in either the life or non-life sectors. By
conventional standards most are small but they have proven resilient
to survive through the various political and economic turmoil of the
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, which accounts for 45% of total premium income and
property/fire, which accounts for another 20%. The overall market is
small, but growing and it has significant long term potential. A
number of the 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
both 35% larger than the non-life sector and it is growing more
rapidly. Product density though is still very low.

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

Key Features Of This Report