Insurance to grow by double digits<\/p>\n
The Jakarta Post, Jakarta<\/p>\n
The domestic insurance industry is expected to grow by double
\ndigits again this year due to a combination of the public's
\nincreased familiarity with its products and higher purchasing
\npower, according to two industry observers.<\/p>\n
The head of research at InfoBank, a magazine specializing in
\nthe financial industry, Eko Supriyanto, said that based on his
\nprojection, life insurance premiums should grow by about 30
\npercent this year while general insurance premiums should grow by
\n15 percent.<\/p>\n
\"This year's growth should be as high as last year's
\nremarkable growth,\" said Supriyanto, whose magazine announced its
\nratings of 134 insurance companies on Monday.<\/p>\n
According to data from the Indonesian Insurance Council (DAI),
\nlife insurance premiums grew by 37 percent from Rp 13.37 trillion
\n(US$1.4 billion) in 2003 to Rp 18.35 trillion in 2004, while
\npremiums for general insurance grew by 9.7 percent from Rp 13.1
\ntrillion to Rp 14.65 trillion.<\/p>\n
DAI chairman Hotbonar Sinaga concurred, saying that based on
\nthe council's data, premiums for life insurance should grow by at
\nleast 30 percent, while premiums for general insurance should
\ngrow by between 10 percent and 15 percent.<\/p>\n
\"The public's knowledge of insurance products is increasing,
\nleading to the high growth in the life insurance segment,\" he
\nsaid.<\/p>\n
He added that the insurance industry had a lot of room for
\ngrowth as life insurance has penetrated only about 15 percent of
\nthe population, while less than 1 percent of the annual GDP in
\nproducts is covered by insurance.<\/p>\n
He said that insurers marketing their products through banks,
\na practice commonly referred to as bancassurance, and those
\noffering unit-linked products would experience a growth of as
\nmuch as 50 percent.<\/p>\n
In contrast to traditional insurance offerings, unit-linked
\ninsurance policies, do not guarantee a specific rate of return,
\nHowever, returns on unit-linked policies are often higher because
\nthey invested in products such as mutual funds, he said.<\/p>\n
\"The growth in life insurance has been spurred by people
\nshifting their money from bank deposits to unit-linked products,\"
\nsaid Hotbonar.<\/p>\n
Supriyanto estimated that between Rp 2 trillion and Rp 3
\ntrillion in bank deposits had shifted to unit-linked products in
\nthe first quarter of this year.<\/p>\n
\"People were simply seeking higher returns than that provided
\nby bank deposits,\" he explained. (002)<\/p>\n
Best insurers<\/p>\n
Five best life insurance companies (in order)<\/p>\n
1. Asuransi Cigna<\/p>\n
2. Asuransi Jiwa Central Asia Raya<\/p>\n
3. Credit Suisse Life & Pensions Indonesia<\/p>\n
4. Prudential Life Insurance<\/p>\n
5. Asuransi Jiwa Askrida<\/p>\n
Five best general insurance companies (in order)<\/p>\n
1. Asuransi Mitsui Sumitomo Indonesia<\/p>\n
2. Asuransi Parolamas<\/p>\n
3. Asuransi Tokio Marine Indonesia<\/p>\n
4. Asuransi Astra Buana<\/p>\n
5. Asuransi Kredit Indonesia<\/p>\n
Source: InfoBank<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/insurance-to-grow-by-double-digits-1447893297", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }