Indonesian regulator highlights low penetration

March 5 2018 by InsuranceAsia News Staff

Domestic insurance penetration in Indonesia is still at a low 2.99% of the gross domestic product, according to the Financial Services Authority.

The low figure comes despite a 20% year-on-year rise in life insurance revenue in Indonesia in the third quarter of 2017.

The insurance penetration in Indonesia is much lower compared to other Asian countries such as Singapore, Malaysia and Thailand, all of which have national insurance penetration rates of at least 5%.

Statistics from the Indonesian Life Insurance Association showed a similarly challenging picture of insurance coverage in the country.

Indonesia is now home to only 17.66 million insured people, as of the second quarter of 2017, which represents a 7.59% decrease from the 19.11 million counted in the corresponding period of 2016.

MORE FROM: Legal/Regulatory