AM Best: Negative outlook for the Indonesian non-life insurance market

AM Best has revised its outlook for the Indonesian non-life insurance market from stable to negative.

This follows a decrease in non-life sales due to a weak economic recovery and delayed by the resurgence of Covid-19.

Multiple product lines were impacted by this decline among which motor, transportation and property. Credit insurance is also under pressure due to the risk of higher claims from defaults among debtors.

Ongoing low interest rates are also among the factors contributing to the decline in performance of Indonesian non-life insurers.