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Opportunity of Cargo Insurance This Year

31 Jul 2019

On Monday, 15th April 2019, Executive Director of General Insurance Association of Indonesia (AAUI) Dody Achmad Sudiyar Dalimunthe stated that there is a potential for growth in the transportation business this year. Based on AAUI data last year, transportation insurance premium grew 11.46% yoy to Rp 3.50 trillion. This growth is in line with the economic growth and also in line with the increase of freight transport volume in 2018, which were 5.18% and 5.00% respectively.

The target set by the government on Indonesia's economic growth is 5.3% for 2019. The increase in the country's economic growth can be an opportunity for the development of the cargo insurance business.

PT Asuransi Mitra Pelindung Mustika (MPM Insurance) continues to target corporations as the segment market, especially companies that have used other MPM Insurance products. MPM Insurance President Director Alexander Hendro Setokusumo said that the potential for cargo insurance in 2019 is still good along with the rapid inter-island interconnection. MPM Insurance handles inter-island cargo as well as imports exports, although handling more of the domestic cargo.

The risk of cargo insurance tends to be smaller than other insurance products, even though the insurance business of MPM Insurance is still dominated by motor vehicle insurance, property insurance, and multipurpose credit insurance. MPM Insurance targets premium growth this year to rise by 15%.