The Indonesian General Insurance Association (AAUI) said that general insurance investment in the first half of 2018 experienced a growth of 5.51%. This growth decreased slightly when compared to investment growth in the same period last year which reached 5.54%.

"For until June 2018, investment reached Rp 2.115 trillion, which in percentage increased by 5.51%. This is in line with what is happening out there [market conditions]," said Executive Director of AAUI, Dody Dalimunthe, Monday (08/27/2018 )

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 it reached 6.66%. There was a decrease of 0.04%," continued Dodi.

The decline in yield on general insurance investment is still seen positively by AAUI. That is, insurance companies have anticipated what happened. Looking ahead, growth in general insurance is believed to be better.

Chairperson of AAUI's Statistics, Research, Analysis, IT and Actuarial Division Trinita Situmeang said he was optimistic that there would be a growth of around 10-15%. It is still supported by two main business lines of insurance, Motor Vehicles and Property.

"If full year, with the occurrence of an earthquake in Lombok, more or less will provide awareness or more concern for insurance. For example, property," he said.

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. .