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Concerns about political unrest drive Q1 insurance growth
Anxiety over possible damages caused by political unrest surrounding the 2019 election has contributed to an increase in insurance premium collection in the first quarter of 2019, according to the Association of General Insurance (AAUI).
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A National Police forensics unit officer inspects a burned car. JP/Dhoni Setiawan (JP/Dhoni Setiawan)
Anxiety over possible damages caused by political unrest surrounding the 2019 election has contributed to an increase in insurance premium collection in the first quarter of 2019, according to the Association of General Insurance (AAUI).
Premium collection in the first quarter grew by slightly more than 10 percent year on year (yoy), or nearly 19 percent quarter-to-quarter, to Rp 19.76 trillion (US$1.37 billion).
Aside from the public’s anxiety, growth was also driven by the acceleration of infrastructure projects.
AAUI executive director Dody Achmad Sudiyar Dalimunthe said the election was not the sole reason for growth. However, he said the potential for damages to be caused during political unrest contributed to insurance purchases for vehicles and houses, which constituted over half of total premium collection.
Dody predicted last year in an interview with Kontan that demand for risk-related insurance would increase as cash flow and consumption was expected to be high during the election period.
