The reinsurance industry is forecast to post more than 10% growth this year in terms of premiums, according to the Indonesian General Insurance Association (AAUI).
"We estimate conservative growth in 2018,” said AAUI Executive Director Dody Dalimunthe, adding however that if the goals set by the government this year are realised, then, the reinsurance market's growth is expected to exceed 10%.
He said that with new general insurance products introduced by insurers, reinsurance support will be needed and this will increase reinsurance revenue, according to a report by Kontan.
AAUI expects the government to provide incentives to increase insurance penetration in the future. The government is working to develop mandatory motor third party liability business, natural disaster insurance and insurance of state property.
Several ministries have also made breakthroughs related to insurance penetration. For instance, there have been insurance breakthroughs by the Ministry of Marine Affairs and Fisheries, to provide cover for shrimp and fish farmers.
"There is export insurance insurance for palm oil, coal and rice imports by the Ministry of Trade. In addition there is agricultural insurance by the Ministry of Agriculture and the insurance of state property by the Ministry of Finance," Mr Dody said.