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“The post-pandemic insurance market will recover faster because, unlike the global financial crisis of 2008-2009, global growth is estimated to be 10% higher,” the executive director of AAUI said on Wednesday, Dody Dalimunthe, at an online panel discussion.
AAUI, however, said it is currently too early to predict how Indonesia will fare this year, due to the volatile pandemic situation.
“The minimum (total insurance premium) for Indonesia is the same as in 2019. If the global estimate is 10%, that’s optimism (sic) for us in Indonesia,†Dody said.
He referred to the economic projections according to which the GDP of developing countries will increase by 6.6% in 2021. Global demand for insurance is also expected to increase by 3.3% in 2021 and 3.9% in 2022.
Demand for commercial general insurance lines is expected to grow the most, Dody said, with growth driven by higher insurance rates in those lines. In addition to the usual insurance such as property, companies will be increasingly in demand for coverages such as civil and professional liability insurance.
AAUI also expects consolidation and growth in the insurance industry in emerging markets, particularly in Asia.
“It is estimated that emerging markets will overtake developed markets. Asia will outperform other regions as the source of global insurance growth will shift with economic strength from the West to the East, â€said Dody.
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