Market Size of Indonesia Motor Insurance Industry
| 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 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 Size Summary
The motor insurance market in Indonesia is poised for moderate growth over the forecast period, influenced by various economic and technological factors. The market's expansion is expected to be driven by government initiatives, technological advancements, and an increase in vehicle sales. Despite the challenges posed by the COVID-19 pandemic, which affected purchasing power and insurance performance, the sector is witnessing a shift towards digital channels. Regulators are encouraging insurance companies to leverage digital platforms, which has led to the emergence of InsurTech firms that simplify access to insurance products. However, these startups face regulatory hurdles due to licensing requirements, which traditional companies do not encounter.
The Indonesian motor insurance market is characterized by a fragmented landscape with numerous players holding minor shares. The market's growth is supported by the rising sales of motor vehicles, although there has been a noted decline in two-wheeled vehicle sales. The insurance penetration rate remains low, with a significant portion of the population under 30, presenting both a challenge and an opportunity for insurers. Companies like PasarPolis are innovating by offering direct-to-consumer insurance solutions, aiming to democratize access to insurance. The market's future trajectory will be shaped by the interplay of vehicle sales, regulatory changes, and the adoption of digital insurance solutions.
Indonesia Motor Insurance Market Size - Table of Contents
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1. MARKET INSIGHTS
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1.1 Market Overview
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1.2 Market Drivers
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1.3 Market Restraints
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1.4 Value Chain Analysis
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1.5 Market Opportunities
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1.6 Porter's Five Forces Analysis
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1.7 Technology Snapshot
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1.8 Consumer Behaviour Analysis
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1.9 Government Regulation In Market
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1.10 Impact of COVID-19
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2. MARKET SEGMENTATION
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2.1 By Insurance Type
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2.1.1 Third Party Liability
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2.1.2 Comprehensive
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2.2 By Distribution Channel
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2.2.1 Agents
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2.2.2 Brokers
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2.2.3 Banks
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2.2.4 Online
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2.2.5 Other Distribution Channels
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Indonesia Motor Insurance Market Size 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.
