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Jakarta Post

More firms compete in car insurance market

  • Tassia Sipahutar

    The Jakarta Post

Jakarta   /   Mon, March 25 2013   /  11:33 am

The automotive insurance market has grown steadily during the past few years, in line with the rise of the automotive industry. However, competition is getting tougher as the number of companies entering this insurance market continues to increase from year to year.

According to the Association of Indonesian General Insurance Companies (AAUI), as many as 77 companies, or about 95 percent of existing general insurance companies, are competing in the automotive insurance market.

AAUI executive director Julian Noor said the automotive sector had become the jewel of the insurance industry since the 1980s when Japanese cars hit Indonesia.

Last year, that jewel shone even brightly when car sales hit a record high of 1.1 million units which contributed to an increase in the car insurance premiums. The motorcycle industry also made a significant contribution the general i...