2021 Insurance Industry Outlook

22 Jan 2021 | By Sompo

Home» Thoughts and Ideas» 2021 Insurance Industry Outlook

Growth in 2021 will be driven by meeting customers demand for instant, speed, and convenience.

As a general insurer with 45 years of track record in Indonesia and more than 130 years in Japan, Sompo Insurance aims to grow sustainably in 2021 by continue innovating for customers’ wellbeing. Our financial performance in 2020 was mainly driven by trust of our customers, as well as diverse product offerings ranging from property, motorized vehicle, cargo shipment, engineering, health, personal accidents, travel, trade credit, business liabilities, and many others.

These diverse product offerings, fast and simple service, combined with comprehensive solutions, enable us to cater personal or business needs at various sizes.

“Our purpose is to protect our customers when they need it most. The role of insurance in protecting someone’s future is even more critical amidst uncertainties that the pandemic brings. For us, having a robust and resilient business is fundamental." -- Eric Nemitz, CEO of PT Sompo Insurance Indonesia.

In their survey report, Deloitte is optimistic that the global general insurance market will rebound in 2021 with a full year growth around +3% compared to 2020. Some of the challenges and risks to be considered and anticipated in 2021 includes increase in digital (online) marketing and potential claims settlement dispute due to COVID-19. Chairman of Asosiasi Asuransi Umum Indonesia (AAUI), Hastanto Sri Margi Widodo, further warns that long-term risk and liability management is key to the rise and fall of an insurer.

“Without a doubt, COVID-19 has become an accelerator for technology adoption in the insurance industry aiming at increasing convenience and quality. Customers want personalized offers on-demand in their mobile phones. Hence, over short to mid-term, we will see market consolidation in the Insurtech industry either through mergers and acquisitions, long-term technology cooperation, and there might even be a new digital distribution channel arising as disruptor. Either way, it will result in an improvement in speed and convenience for end customers and intermediary businesses,” add Mr. Nemitz on Indonesian insurance industry trends he sees might happen in 2021.

This year, we are strengthening our foothold in corporate and retail market by launching various innovations aimed at making Sompo Insurance to become the fastest and easiest to use general insurer in the market. With robust financial stability and a long-established track record, we remain committed to provide innovative solution and comprehensive services to all our customers and business partners.