Indonesia motor insurance market to reach $1.3 billion by 2030, forecasts GlobalData

Indonesia’s centrifugal security marketplace is forecast to registry a compound yearly maturation complaint (CAGR) of 5%, with gross written premiums (GWP) expanding from IDR16.9 trillion ($1 billion) successful 2026 to IDR20.5 trillion ($1.3 billion) successful 2030, according to GlobalData, a starring quality and productivity platform.

GlobalData’s Insurance Database estimates that the Indonesian centrifugal security marketplace volition grounds an yearly maturation of 3.9% successful 2026, supported by gains successful integer distribution, merchandise innovation, and strengthening underwriting discipline. The marketplace is expected to look challenges specified arsenic rising conveyance prices, weakened purchasing power, and accrued losses owed to upwind events. Despite these, the outlook remains affirmative arsenic insurers clasp technology, make electrical conveyance (EV) security products, and amended hazard assessment.

Katam Prasanth, Senior Insurance Analyst astatine GlobalData, comments: "Indonesia’s centrifugal security manufacture is being reshaped by EV acquisition incentives (VAT and luxury taxation exemptions), the emergence of EVs arsenic a high-premium conception with chiseled underwriting needs, and accelerating digitalization alongside favorable regulatory developments."

According to the Association of Indonesian Automotive Industries, EV income reached 55,255 units from January–September 2025, up 27.9% from 43,188 units implicit the aforesaid play successful 2024. As EVs and hybrids grow wrong conveyance fleets, insurers are addressing caller hazard categories specified arsenic battery-related exposures, charging ecosystem considerations, and higher-cost specialized parts and repairs. These dynamics are encouraging merchandise differentiation, including assessments of usage-based approaches and artillery warranty-backed features.

Insurers are demonstrating innovation successful EV security and organisation models, wherever customers tin take betwixt broad and full nonaccomplishment lone (TLO) plans. Comprehensive plans see artillery and charger cover, roadside and aesculapian support, and extended third‑party and idiosyncratic mishap protection, with added catastrophe and unrest coverage.

Under the Development and Strengthening of the Financial Sector (UU P2SK) instrumentality of 2023,  the authorities tin mandate centrifugal third-party liability coverage. This was expected to instrumentality effect successful 2025, but has been delayed, arsenic the authorities has yet to o.k. the supporting legislation. Upon implementation, this is expected to importantly summation security penetration by covering presently uninsured vehicles, taxable to the scope and enforcement acceptable retired successful forthcoming authorities regulations.