Page 17 - Insurance Times September 2023

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News

Indonesia property insur- ($151.1 million) for property insurers in uncertainties, as well as the weakening
2022. of the Taiwanese dollar against the US
ance industry to surpass
To minimize the impact of climate dollar, led to slower growth in the indus-
$2 billion by 2027 change, parametric insurance was in- try in 2022. The industry is expected to
Indonesia’s property insurance industry troduced in Indonesia in October 2022 witness a similar growth trend over the
will grow at a compound annual for takaful insurers to protect farmers next five years, supported by favorable
growth rate (CAGR) of 8.7% from against extreme weather events. This regulatory developments and govern-
IDR26.6 trillion ($1.7 billion) in 2023 to is expected to further support the ment initiatives.”
IDR37.1 trillion ($2.4 billion) in 2027, growth of property insurance, as agri- Motor insurance is the leading line of
in terms of gross written premiums culture is one of the major sectors of business in the Taiwanese general in-
(GWP), a leading data and analytics the economy, contributing 12.3% of surance industry, with an estimated
company. the GDP in 2022, according to Statis- GWP share of 50% in 2023. It is fore-

According to Insurance Database, tics Indonesia. cast to grow by 6.1% in 2023, sup-
Indonesia’s property insurance market ported by an increase in vehicle sales.
is projected to grow by 7% in 2023 and Taiwan general insurance According to Taiwan’s Directorate of
7.8% in 2024. The growth will be industry to surpass $11bn Highways, total vehicle sales increased
mainly supported by a surge in the by 15% to 277,216 units between Janu-
demand for natural catastrophic (Nat- by 2027 ary–July 2023, up from 241,343 units
Cat) insurance, favorable government The Taiwanese general insurance in- sold during the same period in 2022.
policies, and developments towards dustry is set to grow at a compound Recent regulatory developments have
cleaner energy. annual growth rate (CAGR) of 6.4% also supported motor insurance growth
from TWD248.1 billion ($8.4 billion) in in the country. For instance, in Novem-
Insurance Analyst, comments:
“Indonesia’s high exposure to Nat-Cat 2023 to TWD317.8 billion ($11.3 billion) ber 2022, the Financial Supervisory
events, such as floods and earth- in 2027 in terms of gross written pre- Commission (FSC) issued an amend-
quakes, will support the growth of miums (GWP). ment to compulsory automobile liabil-
property insurance policies, which pro- Insurance Database reveals that the ity insurance for two-wheelers. The
amendment included providing insur-
vide coverage for extreme weather general insurance industry in Taiwan is ance coverage for micro-electric two
events, in 2023.” expected to grow by 6.2% in 2023, wheelers (e-bikes). Further, effective

According to the National Disaster supported by an increase in new ve- June 2023, the Ministry of Transporta-
Management Agency (NDMA), Indone- hicle sales and rising demand for pri- tion and Communications (MOTC) man-
sia recorded 3,531 Nat-Cat events in vate health insurance. dated taxi and intercity bus operators
2022, an increase of 4% as compared Insurance Analyst comments, “Taiwan’s to obtain passenger liability insurance
to 2017. These events included 28 general insurance industry grew by 6.1% coverage. This will also support the
earthquakes, 1,524 floods, and 1,062 in 2022 after registering a double-digit motor insurance industry, which is ex-
other extreme weather events, which growth of 10.1% in 2021. An uncertain pected to grow at a CAGR of 6.7% over
resulted in a loss of IDR2.2 trillion global economic outlook and geopolitical 2023–27.

The Insurance Times September 2023 15