The Indonesian General Insurance Association (AAUI) has lowered its double-digit growth estimate for non-life insurance premiums for this year to single digit, that is, to less than 10%.
Previously, AAUI had predicted that the total premium growth by the end of 2018 could be at least 10%. This expectation was due to seeing gross premium expand in the first semester by 11% compared to the corresponding period last year.
The correction is in line with Finance Minister Sri Mulyani Indrawati's forecast that the Indonesian economy would grow by 5.17% this year, sliding from the target of 5.4% set by the government in the 2018 state budget, reported Bisnis.
Based on general insurance industry audited reports, the sector last posted two-digit gross premium growth in 2014 when the sector expanded by 20.22%. After that, general insurance premiums increased 7.16% in 2015, 5.09% in 2016, and 2.27% in 2017.
The growth of the general insurance market is strongly influenced by growth in the property and motor business lines. Data for the third quarter of this year show that the two business lines contributed 54.2% to the total general insurance market.
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