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View all search resultsFirms cut insurance spending by 30 percent as economy slows
Broader economic uncertainty is weighing on investment and household purchasing power, while the impact of recent government policies on the real sector and financial services has yet to be felt, according to an industry association.
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Companies across the country have cut insurance spending up to 30 percent this year, according to the country’s general insurers association. (Shutterstock/thodonal88)
C
ompanies across the country have cut insurance spending up to 30 percent this year as economic headwinds prompt businesses to contain costs, according to a general insurers association.
Both state-owned and private firms were cutting costs, with insurance services among the first to go, said Budi Herawan, chairman of the Indonesian General Insurance Association (AAUI), adding that the trend clouded the outlook for the non-life insurance sector in the third quarter.
“It depends on each company, [but] revenues have taken a hit across the board. Industries are contracting, export demand is falling, imports are down, and raw materials are getting more expensive. It’s tough,” Budi said on Monday, as quoted by Bisnis.com.
Read also: Car sales tumble in first half of 2025 as consumers rein in spending
Most firms were cutting costs in similar ways, often by scaling back on property, motor and health insurance, he explained.
Budi pointed out that broader economic uncertainty was also weighing on investment and household spending power, while the impact of recent government policies on the real sector and financial services had yet to be felt.
“Even if we only match last year’s growth, that would already be a good outcome. We should not expect growth to be stronger than last year,” Budi said.
