AM Best has maintained its stable outlook on Indonesia’s non-life insurance segment, citing in part resilient macroeconomic fundamentals in the nation that continue to support premium growth prospects and operating earnings for insurers.

According to the Best’s Market Segment Report, “Market Segment Outlook: Indonesia Non-Life Insurance,” regulatory measures continue to strengthen the segment’s financial resilience and risk management while specific steps aimed at managing medical inflation are expected to benefit the country’s domestic health insurance sector.

“We expect prospective premium growth among Indonesia’s insurers to remain robust, but profitability continues to be constrained by claims inflation and competitive market conditions,” said XinYa Ong, financial analyst, AM Best.

While the majority of Indonesia’s insurance and reinsurance companies have met the phase-one minimum equity requirement of IDR 250 billion as of July 2026, ahead of the year-end deadline, meeting these requirements will remain a challenge for country’s financially weaker non-life insurers with limited financial flexibility. In addition, Indonesia’s insurance industry is preparing for the phased implementation of a new risk-based capital (RBC) framework, with regulatory reporting expected to begin in 2027. The moves are part of a broader effort to align with evolving international standards.

“Although the implications for individual insurers will only become clearer as implementation progresses, the transition may drive stronger capital discipline and risk management practices across the industry over time,” said Chris Lim, director, AM Best.

Indonesia’s non-life segment continues to increase pricing in response to rising claims costs, higher claims frequency, and pressure on underwriting margins. While this segment remains broadly resilient, margin pressures have intensified across core business lines, such as credit and health insurance. Non-life insurers in Indonesia continue to benefit from adequate reinsurance capacity, supported by access to both domestic and international reinsurance markets.

To access the full copy of this report, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=369356.

AM Best will participate at the 30th annual Indonesia Rendezvous and Conference, which will take place 12-15 October 2026, at the Bali International Convention Centre in Bali, Indonesia. To learn more about the event, visit here.

AM Best will be exhibiting at the event, and visitors to Booth #S7 can learn more about the resources AM Best offers to insurance professionals, including Best’s Credit Ratings and Best’s National Scale Rating for Indonesia. Additionally, Rob Curtis, managing director and chief executive officer of AM Best’s Asia Pacific operations, and Johnathan Wong, senior market development analyst, will be in attendance and will be available for meetings. To arrange a meeting with Curtis, please email rob.curtis@ambest.com, or johnathan.wong@ambest.com to meet with Wong.

AM Best is a global credit rating agency, news publisher and data analytics provider specialising in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

Copyright © 2026 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

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