Prospects for life insurance business in Indonesia are looking up because of the country's potential for economic growth and the staging of regional elections that would stimulate public consumption.
Mr Togar Pasaribu, executive director of the Indonesian Life Insurance Association (AAJI), said that the association is optimistic about national economic development this year, reports Bisnis. Projections outlined by a number of multinational institutions, such as the Asian Development Bank and World Bank, provide confidence in the improvement of national economic performance and the life industry. He also said the political agenda this year should also be a trigger for an increase in public consumption
The election of regional heads on 27 June 2018 will be conducted simultaneously in 171 regions.
"It means the level of consumption will be good. Political shopping is not cheap," he said.
Separately, Ms Shierly Ge, head of marketing at Sun Life Financial Indonesia, also expressing optimisim, said that the growth of the middle class will continue this year. She said, "Stable economic growth in big cities and second and third tier cities also has the potential to generate new middle class people with higher purchasing power."
Data from the AAJI show that total life premium income in 2017 increased by 17.2% to IDR195.72 trillion (US$13.7 billion) compared to 2016. Growth was driven by higher public awareness of insurance and the incessant efforts of life insurers in getting closer to customers.