Indonesia has population more than 240 million and the occurrence of natural disasters is absolutely undeniable – despite that, it is expected to be the ASEAN’s leading market for latest automobile trade. In addition, Indonesia is considered to be a finest destination for insurance investments. in this article we will go display the top insurance companies in indonesia. As an agency company, we partner with some of the best.

Yet, there are some issues that need to be resolved i.e.

Additionally, there are some complications for foreigner investors as well, that are;

At present, financial awareness by private sector and Indonesian government are helping the public to undertake insurance as a means of securing health, assets, and businesses. Therefore, investors from all over the world are investing in this promising market in high spirits.

The Financial Services Authority (Otoritas Jasa Keuangan, or OJK), which is a newly-established independent regulator of Indonesian financial services. The reports by OJK in 2012 indicate that, in this year total assets increased by 15-percent to the amount of USD 67.3 Billion solely in insurance industry. Approximately 45-percent in total increased in General-insurance Assets. Yet, General-insurance Assets pace is in low momentum as compared to Life Insurance Assets.

Considering the data presented by “AAMAI” – an Indonesian Insurance Institute;

The general insurance segment developed gradually as compared to life insurance segment of this particular industry. So far, there’s much prospect of growth when comparing low penetration rate of 1.2% of Indonesia with the related market i.e. Thailand and Malaysia with 3% and 4% respectively.

As reported by “A.M. Best” in its ‘Special Report, 2012’ – the Indonesian market had 40-percent of total paid insurance premiums. Additionally, the percentage is escalating as more Indonesian people are sharing concerns of securing their wealth and obtaining the insurance policies. Lately, the people inferred that it is an excellent way to make one’s living better than before by obtaining property, health, vehicle, and financial assets insurances.

The Regulatory Environment

In the first quarter of 2013, the increment in least amount of capital requirement condition (required by regulation No. 39 of 2008) was applied. In 2012-14, the master plan of Financial Institution Supervisory Agency (Bapepam-LK) and the Capital Market were to increase partnerships, acquisitions and mergers between enhanced capitalized foreign insurance companies and Indonesian insurance companies.

As of 2014, those conditions came in effect and scheduled to augmentation in capital requirements by USD 103 Million. It placed added pressure on middle-size insurance companies. The Negative Investment List No. 36 of 2010 permits foreign investors to control up to 80% of non-pension-fund Indonesian insurers, given that the foreign company exists and operates in related business area. Consequently, sturdy and emerging business enterprises were announced i.e. Merger between Bank Mandiri and AXA.

The Financial Services Authority (OJK) replaced both Bank Indonesia and Bapepam-LK concerning ‘financial services’ and ‘Insurance services’ respectively. The most important objective of OJK is to provide financial understanding and advocacy to enhance public awareness for insurance products – for securing their future. The Authority also makes sure that insurance companies comply with the rules, regulations and requirements of domestic, international as well as ASEAN’s FTA (Free Trade Agreement) 2015. Such inflexible requirements pressed Indonesian insurance companies to set up relationships with foreign insurance companies. Furthermore, the amendments regarding regulations for insurance companies of Indonesia, has intensified the requirements for the coverage of;

Some Indonesian insurance companies are listed below:

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