Our semiannual newsletter on the non-life insurance market in Indonesia covers developments from January to June 2025, including updates on market news and market performance. Overall gross written premium for the non-life industry grew modestly by 0.3% in Q1, a limited increase driven by growth in multiple sectors — including engineering insurance — offset by decreases in the property and motor vehicle sectors, which represent the largest share of total premiums.

The newsletter also highlights a wave of product innovation, insurtech developments, and strategic partnerships. Regulatory changes, including postponed co-payment rules, reflect ongoing efforts to ensure fairness for all stakeholders.

Key takeaways:

• Despite only a 0.3% increase in overall premiums, the industry saw a notable 76.9% year-over-year increase in underwriting profit and a reduction in the net combined ratio, indicating improved operational efficiency.
• New insurance products launched for furniture, travel, health, and agriculture, including some products specifically designed for micro, small, and medium enterprises (MSMEs).
• New insurtech tools such as modular platforms and gadget protection, enhancing digital insurance delivery.
• Indonesia’s Financial Services Authority (OJK) postponed the implementation of co-payment regulations for health insurance to allow broader stakeholder consultation, among other regulatory shifts.