INDONESIA GENERAL INSURANCE MARKET UPDATE 2018 General Insurance Association of Indonesia (AAUI)
Indonesia Economic Performance Year Indonesian Population (in million) Gross Domestic Product (GDP) (Constant Prices, IDR Billion) Economic Growth (%) 2013 248.82 8,156 5.56% 2014 252.16 8,565 5.01% 2015 255.46 8,983 4.88% 2016 257.00 9,435 5.03% 2017 257.00 9,913 5.07% Source : Indonesian Central Statistics Agency (BPS), 2016 &2017 population estimate based on OJK 2
9.00% 7.00% 5.00% 3.00% 1.00% 12,000 10,000 8,000 6,000 4,000 2,000 8.38% 8.36% Indonesia s Macro Economic Indicators Inflation 3.35% 3.02% 3.61% Gross Domestic Product, Economic Growth 15,000 14,000 13,000 12,000 11,000 10,000 9,000 5.56% 9,913 5.60% 5,000 4,738 9,435 4,377 8,156 8,565 8,983 4,058 5.40% 4,000 3,674 2.93% 3,293 5.20% 3,000 5.00% 2.59% 5.07% 2.49% 5.01% 5.03% 2,000 4.88% 4.80% 2.16% 1.77% 4.60% 1,000 58 79 101 128 123 4.40% GDP (constant prices, IDR Trillion) GDP Growth (RHS) Credit (IDR Trillion) NPL (IDR Trillion) NPL 3 (%) Source : Indonesian Central Statistics Agency (BPS), SEKI Bank Indonesia 12,189 Exchange Rate (IDR/USD) 12,440 13,795 13,436 13,548 Banking Credit 3.50% 3.00% 2.50% 2.00% 1.50%
Market Structure: Insurance Companies 62 3 Insurance Companies 59 76 Life Insurance Companies General Insurance Companies Reinsurance Companies Social Security Program Insurance for Civil Servants, Armed Forces and Police Description Life Insurance Co 49 51 55 54 59 General Ins. Co 82 79 78 76 76 Reinsurance Co 4 5 6 5 6 Social Security Program 2 2 2 2 2 Insurance for Civil Servants, Armed Forces and Police 3 3 3 3 3
Market Structure: Insurance Supporting Services 43 27 Insurance Supporting Services Description Insurance Brokers 157 157 166 169 168 168 Reinsurance Brokers 31 31 37 40 43 Loss Adjusters 26 26 28 28 27 Insurance Brokers Reinsurance Brokers Loss Adjusters
Market Structure: Based on Ownership 43 4 Based on Ownership (2017) Description Stateowned Private Joint Venture 94 Life Insurance Companies 1 36 22 General Insurance Companies 2 53 21 Reinsurance Companies 1 5 State owned Private Joint Venture
Asset of Insurance Industry Insurance Industry Total Asset Composition 1,300.00 600.00 1,200.00 1,132.60 500.00 512.95 1,100.00 1,002.83 1,000.00 900.00 807.68 853.42 400.00 300.00 341.09 800.00 700.00 659.72 200.00 127.94 132.40 600.00 100.00 18.22 500.00 Life Insurance Non Life Insurance Reinsurance Social Insurance Mandatory Insurance As of 31 Dec 2017 (In IDR Trillion), USD 1 = IDR 13,548
Investment Portfolio of Insurance Industry As of 31 Dec 2017 (In IDR Trillion), USD 1 = IDR 13,548 500.00 450.00 458.58 In IDR Trillion Direct Placement 2% Government Bonds 25% Mutual Funds 23% Others 2% Time Deposits 14% Bonds 12% Stocks 22% 400.00 350.00 300.00 250.00 200.00 150.00 100.00 50.00 66.02 11.07 324.5 111.9 Life Insurance Non Life Insurance Reinsurance Social Insurance Mandatory Insurance Others Direct Placement Government Bonds Mutual Funds Bonds Stocks Time Deposits 8
Gross Premiums & Gross Claims 450 400 350 300 250 200 150 100 50 Gross Premium & Claim of Insurance Industry 393.47 361.78 295.56 247.32 297.75 186.25 227.35 197.75 163.42 116.30 Gross Premium & Claim Of Non-Life & Reinsurance 80.00 70.00 63.74 67.24 58.29 60.00 53.09 50.00 44.55 40.00 30.00 32.31 32.95 33.51 20.00 27.01 20.73 10.00 0 0.00 Premium Claims Premium Claims In IDR Trillion, USD 1 = IDR 13,548 9
450,000 400,000 350,000 300,000 250,000 200,000 150,000 100,000 50,000 Indonesia Insurance Penetration & Density 186,250 1.96% 247,320 2.35% 295,560 2.61% 361,780 393,475 2.92% 2.90% 9,525 10,543 11,312 12,406 13,588 Gross Premium (IDR Billion) GDP (IDR Trillion) Insurance Penetration (%) RHS 5.00% 4.00% 3.00% 2.00% 1.00% 0.00% Year Gross Premium Premium Growth Population GDP Insurance Penetration Insurance Density per Capita per year (IDR Billion) (% YoY) (In Million) (IDR Trillion) (%) (IDR) 2013 186,250 9.5% 249 9,525 1.96% 748,533 2014 247,320 32.8% 252 10,543 2.35% 980,806 2015 295,560 19.5% 255 11,312 2.61% 1,156,972 2016 361,780 22.4% 257 12,406 2.92% 1,407,704 2017 393,475 8.8% 257 13,588 2.90% 1,531,029 10 Data source: OJK Insurance Statistics, Gross Premiums for 2017 is taken from OJK insurance Monthly Statistics (USD 1 = IDR 13,548)
Non-Life Insurance 2017 Premium Performance In IDR Billion PREMIUMS Line of Business CLAIMS 2016 2017 Δ (%) (LoB) 2016 2017 Δ (%) 19,248.66 18,290.35 (958.31) -5.0% PROPERTY 6,481.24 5,985.35 (495.89) -7.7% 16,487.29 17,236.93 749.64 4.5% MOTOR VEHICLE 7,412.55 7,532.56 120.01 1.6% 2,826.12 3,078.80 252.68 8.9% MARINE CARGO 956.66 1,085.93 129.27 13.5% 1,766.44 1,606.01 (160.43) -9.1% MARINE HULL 1,266.54 1,309.16 42.62 3.4% 1,707.95 972.34 (735.61) -43.1% AVIATION HULL & SATELLITE 409.59 355.78 (53.81) -13.1% 1,829.33 1,638.44 (190.89) -10.4% ENERGY 1,547.67 1,598.83 51.16 3.3% 2,258.82 2,577.47 318.65 14.1% ENGINEERING 1,373.17 1,355.38 (17.79) -1.3% 1,864.62 2,023.24 158.62 8.5% LIABILITY 297.75 247.45 (50.30) -16.9% 1,394.64 2,198.72 804.08 57.7% PERSONAL ACCIDENT 514.30 482.57 (31.73) -6.2% 4,236.83 4,340.58 103.75 2.4% HEALTH 3,429.30 3,524.34 95.04 2.8% 4,667.05 5,169.21 502.16 10.8% CREDIT 2,611.23 2,910.54 299.31 11.5% 1,641.09 1,429.22 (211.87) -12.9% SURETYSHIP 424.34 276.63 (147.71) -34.8% 1,582.82 2,625.15 1,042.33 65.9% MISC. 409.74 988.17 578.43 141.2% 61,511.66 63,186.46 1,674.80 2.7% TOTAL 27,134.08 27,652.69 518.61 1.9% 11 Source: AAUI
Non-Life Insurance Market Share & Claims Contribution Market Share Claims Contribution Health Suretyship 6.9% Credit 2.3% 8.2% Personal Accident 3.5% Liability 3.2% Energy 2.6% Misc. 4.2% Motor Vehicle 27.3% Property 29.0% Suretyship Credit 1.0% 10.5% Personal Accident 1.8% Health 12.8% Liability 0.9% Misc. 3.6% Property 21.6% Motor Vehicle 27.2% Engineering 4.1% Aviation & Sat. 1.5% Marine Hull 2.5% Marine Cargo 4.9% Engineering 4.9% Energy 5.8% Aviation & Sat. 1.3% Marine Hull 4.7% Marine Cargo 3.9% As of 31 Dec 2017 Source: AAUI
Non-Life Insurance 2017 Loss Ratio Line of Business LOSS RATIO (LoB) 2016 2017 PROPERTY 33.67% 32.72% MOTOR VEHICLE 44.96% 43.70% MARINE CARGO 33.85% 35.27% MARINE HULL 71.70% 81.52% AV. HULL & SAT 23.98% 36.59% ENERGY 84.60% 97.58% ENGINEERING 60.79% 52.59% LIABILITY 15.97% 12.23% P. ACCIDENT 36.88% 21.95% HEALTH 80.94% 81.20% CREDIT 55.95% 56.31% SURETYSHIP 25.86% 19.36% MISC. 25.89% 37.64% TOTAL 44.11% 43.76% 13
SMT 1 2017 Non-Life Insurance 2018 H1 Premium Performance Premi Bruto / Gross Premiums SMT 1 2018 Δ % Lini Bisnis / Line of Business SMT 1 2017 SMT 1 2018 In IDR Billion Klaim Bruto / Gross Claims Δ % 8,254.33 8,350.21 95.89 1.2% PROPERTY 2,941.04 2,730.01 (211.04) 7.2% 8,453.00 9,214.43 761.42 9.0% MOTOR VEHICLE 3,531.38 3,759.77 228.39 6.5% 1,666.72 1,860.95 194.24 11.7% MARINE CARGO 512.76 401.75 (111.01) 21.6% 785.75 752.82 (32.93) 4.2% MARINE HULL 617.57 415.05 (202.52) 32.8% 194.70 561.02 366.32 188.2% AVIATION HULL & SATELLITE 212.61 192.66 (19.95) 9.4% 1,179.78 1,071.71 (108.07) 9.2% ENERGY 1,012.25 240.70 (771.55) 76.2% 991.54 838.60 (152.94) 15.4% ENGINEERING 472.23 589.52 117.29 24.8% 1,023.53 1,564.96 541.44 52.9% LIABILITY 147.79 116.07 (31.72) 21.5% 634.58 762.62 128.03 20.2% PERSONAL ACCIDENT 209.89 245.37 35.47 16.9% 2,375.12 2,601.00 225.88 9.5% HEALTH INSURANCE 1,696.23 1,783.44 87.21 5.1% 2,329.09 2,974.67 645.58 27.7% CREDIT INSURANCE 521.84 1,735.60 1,213.76 232.6% 624.95 673.12 48.17 7.7% SURETY SHIP 150.35 185.57 35.22 23.4% 1,330.00 1,904.34 574.34 43.2% MISCELLANEOUS 437.87 480.98 43.11 9.8% 29,843.1 33,130.5 3,287.4 11.0% TOTAL 12,463.84 12,876.49 412.65 3.3% 14 Source: AAUI
INDONESIA GENERAL INSURANCE MARKET UPDATE 2018 General Insurance Association of Indonesia (AAUI)