Along with China, the list of insurance companies in Indonesia is growing simply because a tremendous amount of potential for the insurance market currently exists. Considering that this country is comprised of some 13,000 islands and more than 210 people, it is easy to see that need for quality insurance is needed. Even with a huge population such as that, only 10% currently hold a life insurance policy.
Obviously, for an Indonesia insurance company, these statistics show that with education and introduction of good insurance policies, especially for life coverage, the potential is staggering. Over the past 10 years, Indonesia has experienced incredible success and growth, both socially and economically. Although the country still has a ways to go, we are seeing vast improvements. Experts believe this will cause the list of insurance companies in Indonesia to continue to grow but only time will tell the true story.
Remember, prior to the East Asian financial crisis, Indonesia was a country that had one of the strongest economies, having seen fast economic growth that had lasted for 30 years. If you look at the time from 1985 to 1995, you would see that the economy in Indonesia grew steadily, which actually decreased poverty by 60%. Then in 1997, the financial crisis hit, completely reversing the course on which Indonesia had been heading. Just one year later, the currency had plummeted, inflation had gone way up, and the entire banking system was in ruins.
During the financial crisis, Indonesia saw more than 2.5 million people lose jobs and approximately 50% of the population was now trying to survive on incomes below the poverty level. The country struggled for some time, which meant any Indonesia insurance company was going to fail or do very poorly. Understanding that something drastic has to be done, the Indonesian government’s President was forced to step down, and the new President began an economic reform. However, the country was still in a horrible mess, a time of sheer violence.