Infrastructure budget to boost insurance

Fitch Ratings says in a new report that Indonesia’s increased infrastructure budget for 2017 (IDR387 trillion from IDR317 trillion) is likely to spur economic growth and could lead indirectly to high demand for insurance products.

The rating outlook for Indonesia’s life and non-life insurance sectors in 2017 is stable, underpinned by rising insurance awareness, conservative investment practices, economic growth, and enhancing reinsurance coverage, according to the Singapore Business Review.

The outlook also reflects Fitch’s view that Indonesia’s large population, low insurance coverage, growing middle-income sector and greater insurance awareness should also support sector growth.