Fitch, stable outlooks for insurance in 2013

Fitch has maintained Indonesian insurers’ outlooks at a stable status for the year 2013. The agency has justified its decision by the country’s good economic performance and the stiffening of the regulatory framework. The increase of the premium income is the result of the country’s growing influence in the region where the development of coverage against natural risks is positively appreciated. Insurance penetration rate remains poor (1.7%), while it is of 4% in Singapore and Malaysia. At the legislative level, the regulatory framework is more binding. The increase of the minimum capital at 7.25 million USD is likely to trigger a wave of concentrations, paving the way for more reliable insurers. Foreign investments are favored due to the 80% top participation in the capital of local actors, the highest in the region.