TEMPO.CO, Jakarta - The insurance industry is pushing for the formation of an infrastructure insurance consortium that will be able to accommodate the insurance of government infrastructure projects.
Julian Noor, executive director of the Indonesian General Insurers Association (AAUI), said the government tends to involve foreign investors in infrastructure development, who prefer to use foreign insurance and reinsurance services as well. The existence of a consortium, he said can help local insurers to capture the business opportunities presented by state infrastructure projects—estimated to worth Rp5,319 trillion until 2019.
At the AAUI's international seminar on 'Insurance and Infrastructure Project Development in Indonesia' held Tuesday, August 11, Julian said that a consortium will provide an opportunity for national insurers to increase their performances amid a slowing economy, particularly in the engineering and underwriting insurance business lines.
As of the first quarter of 2015, the AUUI noted that the gross premium of engineering insurance had reached Rp395.6 billion. For underwriting insurance, the gross premium amounted to Rp276.2 billion.
The start of state infrastructure projects, Julian said, could double the premium potential of both business lines.
BISNIS | RR