REPUBLIKA.CO.ID, JAKARTA - General insurance premiums in Indonesia is expected to grow 15 percent in 2014 with assumption of economic growth in range of six percent and inflation rate of 7.2 percent. Chairman of General Insurance Association of Indonesia (AAUI), Kornelius Simanjuntak said that based on its underwriting side, general insurance growth of this year was expected below 15 percent.
"It is projected to 10 percent to the end of the year," Simanjuntak said on Wednesday.
Investment return of general insurance continues to experience significant growth below gross premium growth. Investment yield in 2012 was only seven percent, while in 2013 it reaches eight percent.
Market share of general insurance business in Indonesia now is still dominated by motor vehicle and property insurance. In 2014, there is new sector for micro insurance. General insurance recorded gross premiums of 39.4 trillion IDR in 2012 or grew 14.3 percent from 2011.
There are several opportunities and challenges facing by general insurance industry in 2014. First, capital or equity of company. Second, Financial Service Authority (OJK) regulation that continues to encourage health of insurance companies. Third, provisions of general insurance actuaries. rance
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