Indonesia’s exposure growth outpacing insurance growth
Thursday, 06 15 2017, Category: Insurance and Reinsurance, Country: World
Insurance and reinsurance premium volumes continue to increase in Indonesia but at a slower rate than total exposure growth, which, combined with regulatory changes in the region and other determining factors suggests domestic re/insurers’ exposures are on the rise, says JLT Re.
The overall growth of the Indonesian economy has resulted in the rapid expansion of total insured property and engineering exposures. However, analysis from reinsurance broker JLT Re, discussed in a recent report on the Indonesian reinsurance sector, states that during the same period reinsurance cessions and exposure-adjusted purchases have declined.
As a result, domestic re/insurers are now more exposed to large losses, a trend that has been exacerbated by recent regulatory changes implemented in the country requiring greater per-risk retentions for insurance companies and compulsory cessions to domestic reinsurance firms.