Now that Indonesia’s recent presidential election is over, the country is turning its attention back to the economy. According to the Jakarta Post, un-weighted new business premium collections in the first half of 2014 totalled IDR 30.57 trillion, which is equivalent to a 16.3% drop from the IDR 36.52 trillion of un-weighted new business premiums collected during the same period in 2013. The Indonesia Life Insurance Association (AAJI) attributed this slowdown to the recent political activity prior to and after the election and a ‘wait and see’ attitude amongst the general public. The AAJI also reported a slowdown in single premium sales. Despite the slowdown in performance during the first six months of the year, the director of the AAJI was quoted as saying that he expects the life insurance industry to achieve 15% to 16% growth in total premium by the end of the year, citing stronger growth trends in the second half of the year.
This newsletter provides more details on Indonesian market performance, as well as an overview of recent market news, regulatory developments, and other industry activity.