General insurance industry in Indonesia generated growth of 2.1% in premium income in 1H2021 to IDR38.37tn ($2.68bn), compared to the corresponding period last year. This pace was faster than in the first quarter when premiums expanded by only 1.5% year on year, indicating that 2Q2021 growth was more rapid. In 1H2021, property insurance remained the business line that contributed the most premiums. The Indonesian General Association (AAUI) says that the property insurance business line accounted for 29% of non-life business, according to a report by Kontan. The contribution was supported by the growth in property insurance premiums of 16.1% year on year to IDR10.97tn.
This growth in 1H2021 slowed compared to the first quarter of this year when the increase was 35%. Motor insurance premiums in the first half of this year contracted by 5.2% year on year to IDR7.40tn while credit insurance grew 1.5% year on year to IDR5.87tn. Contributors of general insurance are still mainly the three business lines, namely, property, motor and credit insurance. This was the same as in the first quarter, despite falling vehicle insurance premiums. The premium growth in property insurance was also driven by the relaxation of home loans by the government such as allowing for a postponement of payments. Microinsurance is also currently growing well, although we do not have the exact data yet. It shows that insurance does not only rely on conventional products.