Indonesia Motor Insurance Market Size
| Study Period | 2019 - 2028 |
| Base Year For Estimation | 2022 |
| Forecast Data Period | 2024 - 2028 |
| Historical Data Period | 2019 - 2021 |
| CAGR | 7.41 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Need a report that reflects how COVID-19 has impacted this market and its growth?
Indonesia Motor Insurance Market Analysis
Indonesia Motor Insurance Market has generated a revenue of USD 1.4 Billion in the current year and is poised to achieve a CAGR of 7.41% for the forecast period. The impact of COVID-19 on motor insurance is mixed. Bank Indonesia dropped its interest rates to record lows of 3.50% in reaction to the pandemic's economic impact, and it is projected to stay at this level for the foreseeable future. Interest rate risk is 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, are 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 coronavirus pandemic will have 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 would also hit the performance of motor vehicle insurance. This condition is also feared to reduce public spending on insurance protection.
This property business line recorded the largest market share in the general insurance industry. Underneath it is the Motor business line, credit insurance, personal accident insurance, and marine cargo. However, there has been a downward trend in motorized vehicles at 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. Whereas there is a growth in four-wheeled vehicles which reached 20.0 percent (yoy). In the second quarter of 2022 the number of cars sold reached 4,65,252 units, which increased from the second quarter of 2021 as many as 3,87,844 units.
Indonesia Motor Insurance Market Trends
This section covers the major market trends shaping the Indonesia Motor Insurance Market according to our research experts:
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.
As such, regulators are encouraging the use of digital channels in insurance and have publicly voiced that “no regulation is needed 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. However, financial comparison startups such as Experian-backed C88 Technologies have largely focused on simpler financial and banking products.
The Indonesian insurance market is expected to be driven by government initiatives, technological advancements and increased vehicel sales.
Potential Growth Opportunities for InsurTech Market
As of 2020, there are 322 fintech companies in Indonesia, starting 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 IDR12.3 trillion (USD 840 million).
InsurTech businesses have grown in number in Indonesia over the past few years, particularly in response to mass mobility restrictions at the start of the Covid-10 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 licence like traditional insurance companies do. However, the future growth of InsurTechs will mould 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. Its major players are Great Eastern Life Indonesia. PT, PT. Tokio Marine Life Insurance Indonesia, Allianz Indonesia Life, Asuransi Sinar Mas and PT. Zurich Insurance Indonesia
Indonesia Motor Insurance Market Leaders
Great Eastern Life Indonesia. PT
PT. Tokio Marine Life Insurance Indonesia
Allianz Indonesia Life
Asuransi Sinar Mas
PT. Zurich Insurance Indonesia
*Disclaimer: Major Players sorted in no particular order
Indonesia Motor Insurance Market News
- In 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 claims in an effort to democratise 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.
- In November 2022, Tokio Marine Holdings, Inc had announced that it has increased its shareholdings for PT Asuransi Tokio Marine Indonesia from 60% to 80% through its wholly owned subsidiary
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 Force Model
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 public members from potential road accidents. Every driver who owns a car is required by law to obtain a single automobile insurance coverage. This report aims to offer a detailed analysis of the Indonesia 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 size and forecast values for the Indonesia Motor Insurance Market in USD billion for 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 7.41% during the forecast period (2023-2028).
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.
Motor Insurance in Indonesia Industry Report
Statistics for the 2023 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 2028 and historical overview. Get a sample of this industry analysis as a free report PDF download.
