The Indonesian General Insurance Association (AAUI) expects general
insurance gross premiums to grow by 15 to 20 percent this year, tripling
its growth pace last year, on the back of government infrastructure
developments.
The association has projected general insurance gross premiums will reach Rp 58.9 trillion ($4.4 billion) by the end of the year, AAUI's chairman Yasril Y Rasyid said on Tuesday (01/03).
The industry expanded by just 6.7 percent last year to Rp 55.2 trillion, in line with the slowing sales of cars, homes and apartments.
General insurers provide non-life insurance policies for common properties like cars and homes, or more specific items like jewelry and athlete's limbs to cover losses from possible injuries or events.
Yasril noted the government has been pushing infrastructure projects this year, which is likely to increase demand for insurance.
"In addition, the gross premium would also increase because of People's Business Loan this year, which would reach Rp 100 trillion to Rp 120 trillion," he said, referring to a government program that provides loan to small medium sized business.
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