Indonesia Motor Insurance Market Size
| Study Period | 2021 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2021 - 2022 |
| CAGR | < 6.00 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Indonesia Motor Insurance Market Analysis
The Indonesia Motor Insurance Market is expected to register a CAGR of not more than 6% for the study period.
The impact of COVID-19 on motor insurance was mixed. Bank Indonesia dropped its interest rates to record lows of 3.50% in reaction to the pandemic's economic impact, and it was projected to stay at this level for the foreseeable future. Interest rate risk was a concern for insurers due to investment leverage, product guarantees, and policyholder options. Insurers with a longer tenure of obligations than assets and a strong exposure to negative convex bonds, whose prices do not rise as much as other bonds when interest rates fall, were the most vulnerable to these changes. The Indonesian General Insurance Association, or AAUI, projects that the performance of motor vehicle insurance will slow this year, despite positive achievements in the first quarter. The COVID-19 pandemic had a considerable impact on motor vehicle insurance performance this year, including other general insurance business lines. The decline in people's purchasing power due to COVID-19 also hit the performance of motor vehicle insurance. It was also feared that this condition would reduce government spending on insurance protection.
This property business line recorded the largest market share in the general insurance industry. The motor business line, credit insurance, personal accident insurance, and marine cargo are all listed beneath it. However, there has been a downward trend in motorized vehicles since the beginning of the year. The Association of Indonesian Automotive Industries (GAIKINDO) recorded sales of two-wheeled vehicles in the 2nd quarter of 2022 of 2.24 million units, down 8.3 percent (yoy) from the second quarter of 2021 of 2.45 million units. where four-wheeled vehicles have increased by 20.0 percent year on year. In the second quarter of 2022, the number of cars sold reached 4,65,252 units, an increase from the second quarter of 2021, when it reached 3,87,844 units.
Indonesia Motor Insurance Market Trends
Potential Growth in the Insurance Sector
Overall insurance penetration in the country of 264 million people ranks among the lowest in the world at less than 2% (4.5 million Indonesians carry a policy). Half of Indonesia's population is under the age of 30, with the number of millennials (aged 17-35) in Indonesia currently at 79.5 million.
So, regulators are encouraging insurance companies to use digital channels and have said publicly that "there is no need to regulate insurance marketing through digital means."
To date, a number of tech startups operating in the realm of insurance have focused on financial comparison by providing online destinations to buy insurance products from licensed brokers. But financial comparison startups like C88 Technologies, which is backed by Experian, have mostly focused on banking and financial products that are easy to use.
The Indonesian insurance market is expected to be driven by government initiatives, technological advancements, and increased vehicle sales.
Potential Growth Opportunities for InsurTech Market
As of 2020, there are 322 fintech companies in Indonesia, ranging from deposits and lending to payment and capital raising. The top two fastest-growing fintech areas in Indonesia are peer-to-peer (P2P) lending and e-payment. Based on Bank of Indonesia statistics, the value of e-money transactions grew sixfold between 2012 and 2017 to IDR 12.3 trillion (USD 840 million).
InsurTech businesses grew in number in Indonesia over the past few years, particularly in response to mass mobility restrictions at the start of the COVID-19 pandemic in early 2020. Insurtechs raised the majority of their money between 2020 and 2022. InsurTechs make it simple to access insurance goods, typically micro-sized non-life products, but they encounter difficulties entering the market because they lack a license like traditional insurance companies do. However, the future growth of InsurTechs will mold the routes of distribution in the Indonesian insurance sector.
Indonesia Motor Insurance Industry Overview
Companies across the world have huge investments in this segment of the market. In Indonesia Motor Insurance market, companies fragmented over minor shares. The market is likely to grow during the forecast period due to the rise in sales of motor vehicles and many other factors that are driving the market.
Indonesia Motor Insurance Market Leaders
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Great Eastern Life Indonesia. PT
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PT. Tokio Marine Life Insurance Indonesia
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Allianz Indonesia Life
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Asuransi Sinar Mas
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PT. Zurich Insurance Indonesia
*Disclaimer: Major Players sorted in no particular order
Indonesia Motor Insurance Market News
- November 2022: To increase consumer access to insurance, PasarPolis, an Indonesian insurtech firm, introduced TAP Insure, a direct-to-consumer vertical. The company leverages cutting-edge technology to deliver a seamless user experience from purchase to claim in an effort to democratize insurance by enabling all consumers to readily obtain reasonable insurance solutions. Customers can access embedded insurance products directly from the TAP Insure app, which can be downloaded from the AppStore and Playstore, thanks to PasarPolis' focus on end users.
- January 2022: The Indonesian government declares that the PPnBM automobile sales tax benefits will continue in 2022. The government plans to abolish the rules for collecting the luxury goods sales tax (PPnBM) and replace it with a value-added tax (PPN). The automotive and electronic goods entrepreneurs are still waiting and seeing. However, they are worried that changes to the tax collection policy could increase the selling price of the product.
Indonesia Motor Insurance Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
2.1 Analysis Methodology
2.2 Research Phases
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Market Drivers
4.3 Market Restraints
4.4 Value Chain Analysis
4.5 Market Opportunities
4.6 Porter's Five Forces Analysis
4.7 Technology Snapshot
4.8 Consumer Behaviour Analysis
4.9 Government Regulation In Market
4.10 Impact of COVID-19
5. MARKET SEGMENTATION
5.1 By Insurance Type
5.1.1 Third Party Liability
5.1.2 Comprehensive
5.2 By Distribution Channel
5.2.1 Agents
5.2.2 Brokers
5.2.3 Banks
5.2.4 Online
5.2.5 Other Distribution Channels
6. COMPETITIVE LANDSCAPE
6.1 Market Concentration Overview
6.2 Company Profiles
6.2.1 Great Eastern Life Indonesia. PT
6.2.2 PT. Tokio Marine Life Insurance Indonesia
6.2.3 Allianz Indonesia Life
6.2.4 PT Asuransi Wahana Tata (ASWATA)
6.2.5 Asuransi Sinar Mas
6.2.6 PT Asuransi Astra Buana
6.2.7 AXA Mandiri
6.2.8 PT. Zurich Insurance Indonesia
6.2.9 PT AIA Financial & AIG Insurance Indonesia
6.2.10 PT Tugu Pratama Indonesia
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Indonesia Motor Insurance Industry Segmentation
A vehicle insurance policy is a legally required document provided by an insurance provider to limit public responsibility and safeguard the public from potential road accidents. Every driver who owns a car is required by law to obtain automobile insurance coverage.
This report aims to offer a detailed analysis of the Indonesian motor insurance market. It concentrates on the market dynamics, emerging trends in the segments and regional markets, and insights into various product and application types. Also, it focuses on the key players and the competitive landscape in the market.
The Indonesia Motor Insurance Market is segmented by Insurance Type (Third Party Liability and Comprehensive) and Distribution Channel (Agents, Brokers, Banks, Online, and Other Distribution Channels). The report offers market sizes and forecasts in value (USD million) for all the above segments.
| By Insurance Type | |
| Third Party Liability | |
| Comprehensive |
| By Distribution Channel | |
| Agents | |
| Brokers | |
| Banks | |
| Online | |
| Other Distribution Channels |
Indonesia Motor Insurance Market Research FAQs
What is the current Indonesia Motor Insurance Market size?
The Indonesia Motor Insurance Market is projected to register a CAGR of less than 6% during the forecast period (2024-2029)
Who are the key players in Indonesia Motor Insurance Market?
Great Eastern Life Indonesia. PT, PT. Tokio Marine Life Insurance Indonesia, Allianz Indonesia Life, Asuransi Sinar Mas and PT. Zurich Insurance Indonesia are the major companies operating in the Indonesia Motor Insurance Market.
What years does this Indonesia Motor Insurance Market cover?
The report covers the Indonesia Motor Insurance Market historical market size for years: 2021, 2022 and 2023. The report also forecasts the Indonesia Motor Insurance Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Motor Insurance in Indonesia Industry Report
Statistics for the 2024 Motor Insurance in Indonesia market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Motor Insurance in Indonesia analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
