Insurance in Indonesia: Market and IT Overview

by KyongSun Kong, August 13, 2014
Industry Trends
Asia-Pacific

Abstract

The Indonesian insurance market possesses strong potential for long term growth. Drivers will include increased awareness of insurance and changes in the technology ecosystem. 

In the report Insurance in Indonesia: Market and IT overview, Celent looks at insurance business trends in Indonesia, and estimates spending on the nation’s insurance technology systems. The report further identifies the drivers for business growth in the Indonesian insurance market.

Celent estimates that IT spending in the Indonesian insurance market will reach US$640 million in 2015, representing a CAGR of 29.5% from 2010 to 2015.

“A number of drivers point to the future growth of the Indonesian insurance market. Indonesia has a large population, yet the insurance penetration rate is still quite low,” says KyongSun Kong, Analyst with Celent’s Asian Financial Services Group, “With increased awareness of insurance, the market should see strong long term growth.”

This report also includes recommendations for financial institutions and vendors that are considering expanding their business in the Indonesian insurance market.

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned subsidiary of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81 3 3500 3023

Table of Contents

Executive Summary

1

Indonesian Economy

2

Market Overview

3

Life Insurance Business

5

 

Market Size

5

 

Market Concentration

5

 

Lines of Business

6

 

Distribution Channels

7

P&C Insurance Business

8

 

Market Size

8

 

Market Concentration

8

 

Lines of Business

9

 

Distribution Channels

10

Regulatory Updates

11

IT Trends

12

Conclusion

15

 

For Insurers

15

 

For Vendors

15

Leveraging Celent’s Expertise

16

 

Support for Financial Institutions

16

 

Support for Vendors

16

Related Celent Research

17

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