Consolidation of the Indonesian insurance market

Fauzi Ichsan, chairman of the Indonesia Financial Group (IFG), says the Indonesian insurance market has a significant growth potential. Unfortunately, the Covid-19 pandemic has led to a sharp decline in the value of stocks, bonds and property held by insurers. These latter have notably recorded a turnover decrease.

According to Ichsan, industry professionals should view the health crisis as an opportunity to transform the industry. The following factors could contribute to the market consolidation: Setting IT platforms, developing actuarial capabilities and redesigning insurers' balance sheets.

Stricter minimum capital requirements may also play a role in the transformation of the industry.