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Cargo Insurance Opportunities This Year

On Monday (4/15/2019), Executive Director of the Indonesian Insurance Association (AAUI) Dody Achmad Sudiyar Dalimunthe stated that there is potential for growth in transportation lines this year. Based on AAUI data last year, freight insurance premiums grew 11.46% yoy to Rp 3.50 trillion. This growth is in line with economic growth and the increase in the volume of transportation of goods during 2018, respectively 5.18% and 5.00%. The target set by the government for Indonesia's economic growth is 5.3% for 2019. Increased economic growth in the country can be opportunities for the development of the kargos insurance business. PT Asuransi Mitra Protika Mustika (MPM Insurance) continues to target corporations as the target segment, especially companies that have used other MPM Insurance products. MPM Insurance President Director Alexander Hendro Setokusumo said the potential for cargo insurance in 2019 was still good in line with increasingly rapid interconnection of islands. MPM Insurance handles inter-island cargoes and export imports, albeit more for domestic cargoes. The risks of cargo insurance tend to be smaller than other insurance products, although MPM Insurance's insurance business is still dominated by motor vehicle insurance, property and multipurpose loans. MPM Insurance is targeting premium growth this year to rise by 15%.