Contributing Rp14.96 Trillion, Asuransi Industry Premiership Domination Property

Photo: Doc. AAUI

JAKARTA - The Indonesian General Insurance Association (AAUI) noted that the premium for the property insurance industry dominates the premium performance of the insurance industry. It grew 36.4 percent or Rp14.96 trillion in the second quarter of 2022.

"In general, the property business is also supported by several projects that have been completed and when it is finished, automatically switch to the insurance industry," said AAUI's Head of the Statistics Department, Esti Handayani at an online press conference quoted by Antara, Wednesday, September 21.

Esti said, along with the sloping COVID-19 and the growing business, the property sector also rose which contributed to the growth of insurance.

"Moreover, demand for commercial property in the market has also grown so that it encourages its own property and insurance," said Esti.

Referring to Bank Indonesia data, he continued, commercial property demand in the second quarter of 2022 grew 1.58 percent (yoy) with the highest demand in the industrial land segment and a warehouse complex.

In addition, loans related to properties such as mortgages, real estate loans, to construction loans which also increased in the same period were also a supporting factor in the growth of property insurance premiums. KPR credit was recorded to have increased by 6.5 percent, real estate loans rose 8.1 percent and construction loans rose 1.7 percent.

Then in terms of claims paid for by general insurance, property lines reached Rp3.99 trillion, an increase of 42 percent from the same period last year of Rp2.81 trillion.

In addition to property lines, premium growth was also contributed by satellites with a growth of 1928.1 percent from Rp22 billion in the second quarter of 2021 to Rp446 billion in the second quarter of 2022.

For motorcycles, 18.3 percent grew. It rose from Rp7.4 trillion to Rp8.76 trillion or an increase of Rp1.35 trillion," he said.

The increase in premiums was also inscribed by the marine cargo business line which grew 17.4 percent to Rp2.1 trillion. Then onshore energy grew to Rp147 billion or grew 58.7 percent, and health insurance which grew 28.1 percent with a premium amount of Rp3.4 trillion.

Then, on the claim side, it was also supported by energy offshore by 138.1 percent reaching Rp750 billion and followed by claims that the motor vehicle business had improved as indicated by a percentage decline to 33.5 percent from 38.9 percent which was also followed by the marine cargo business which fell by 23.7 percent from 26.9 percent.

As for credit insurance from 42.2 percent, the ratio of claims paid jumped to 73 percent, health insurance rose from 54.3 percent to 70.1 percent and insurance guarantees from 25.8 percent to 35.3 percent.