Insurance industry to grow 30%

JAKARTA (JP): The Indonesian Insurance Council (DAI) projected domestic life insurance business to expand by 30 percent this year due to a better business climate.

DAI senior executive Angger P. Yuwono estimated the industry's premium income to increase to Rp 9.4 trillion (US$10.5 billion) in 2001 from Rp 7.3 trillion last year.

"Last year, we enjoyed a hefty growth in our business. It will be happening again this year," Angger told reporters in a media conference.

He said that the industry booked a five percent increase in premium income to Rp 1.03 trillion in the first quarter of this year, as compared with Rp 975 billion in the same period last year.

"The (first quarter) growth gives a strong indication that it will be another success story this year," he said, adding that first quarter results were usually the lowest in a year.

Angger said the industry booked Rp 7.3 trillion in premium income last year, a 36 percent increase from Rp 5.3 trillion in the previous year.

"At present, there is really no problem that might prevent the industry from achieving such a conservative target," he said.

Elsewhere, DAI reported the financial performance of its 45 member life insurance companies during the first quarter of this year.

The industry posted an 87 percent increase in investment income to Rp 542 billion in the first quarter 2001, as compared with Rp 289 billion in the same period last year, DAI said.

DAI also said the industry booked a total revenue of Rp 2.6 trillion in the first quarter of this year, a 30 percent increase from Rp 2.0 trillion in the first quarter of last year.

The total claim paid edged up to Rp 1.1 trillion in the first quarter this year, from Rp 967 billion in the corresponding period last year, it said.

The report also said investments made by the life insurance industry nudged up 41.7 percent to Rp 14 trillion in the first quarter, as compared with Rp 10 trillion in the first quarter of last year.

The report stated that there were 23.3 million insurance "participants" in total up to the end of the first quarter of this year, comprising group insurance (86 percent) and individual insurance (14 percent).

DAI has 57 member life insurance companies, which include 24 local companies and 23 joint-venture companies. (dmr)