General insurance in the first half of 2018, exactly 11% compared to the same period last year. Total gross insurance premiums in the even semester I-2018 reached Rp 33.1 trillion.

The Indonesian General Insurance Association (AAUI) notes. There are three negative lines, namely Ship, Energy and Engineering, which fell by -4.2%, -9.2%, and -15.4% respectively.

Chairperson of AAUI's Statistics, Research, Analysis, IT and Actuarial Division Trinita Situmeang, General Insurance and Satellite Management, and Liability.


"Gross premiums, the largest growth occurred in the line of airlines and satellites reached 188.2% and Liability was 52.9%," said Trinita at the AAUI Office, Monday (08/27/2018).

Meanwhile, gross insurance claims also increased by 3.3%. Recorded, total gross insurance claims totaled Rp 12.8 trillion. The highest growth occurred in credit insurance claims which reached 232.6%.

"The decline in gross claims occurs in several lines, especially property, transportation, ship frame, aviation and satellite insurance, Energy, and legal responsibility," said Trinita.

The ratio of claims to premium (loss ratio) in the period was recorded at 38.9% or down from last year's 41.8%. Almost all business lines recorded a decrease in the loss ratio, except for the Engineering, Credit and Guarantee Insurance lines, with an increase occurring at the close of Credit Insurance of 35.9%.

Trinita said, a 9.5% increase in Health insurance premiums was dominated by the Social Security Organizing Body (BPJS) Health.

"For market share, it is still dominated by two business lines which account for around 53% of all general insurance. This is dominated by Motor Vehicle and Property insurance, which is 27.8% and 25.2%," he explained.

Despite dominating, there was a decline in motor vehicle insurance which in the same period last year reached 28.3% and property which last year reached 27.7%. On the other hand, there is an increase in market share in the Legal Liability line from 3.4% to 4.7% and Credit insurance from 7.8% to 9% this year.

Furthermore, Executive Director of AAUI, Dody Dalimunthe said that general insurance investment in the first half of 2018 experienced a growth of 5.51%. That growth declined slightly compared to investment growth in the same period last year which touched 5.54%.
"For up to June 2018, investment reached Rp 2.115 trillion, which percentage increased by 5.51%. This is in line with what is happening out there [market conditions]," said Dody.

Dody explained that the economic turmoil in the market which suppressed the level of investment contributed to investment in general insurance. These causes, among others, emerged from the volatility of the Composite Stock Price Index (JCI) and anticipation of a rate hike by the Federal Reserve (The Fed).

"Meanwhile, the ratio of investment yield or yield in 2018, growth of 6.62%. While in the same period last year reached 6.66%. There was a decrease of 0.04%," continued Dody.

The decline in yield on general insurance investment is still seen positively by AAUI. That is, insurance companies have anticipated what happened.

Looking ahead, he is optimistic that there is general insurance growth in the range of 10-15% for the second quarter of 2018. It is still supported by two main business lines of insurance, Motor Vehicles and Property.

He added, the occurrence of the earthquake in Lombok was also expected to increase public awareness of insurance. Until last week, Dody had received a report from PT Asuransi Maipark Indonesia (Maipark) that there had been a claim report of Rp 39 billion.

It consists of 156 reports, but does not contain the total claims of the event.

"The Lombok earthquake was just reporting, it hasn't reported everything. [...] if there is a final claim report, then it will be paid. The fastest payment is in early September. It is still in the initial reporting phase, then data verification and assessment," Dody explained. .