Indonesian Vehicle Insurance Market Experiences Premium Decline

OJK Reports 5.01% YoY Decrease in Premiums as of October 2025

The Indonesian vehicle insurance sector continued to face challenges in 2025, with the Financial Services Authority (OJK) reporting a 5.01% year-on-year decline in premiums to Rp 17.09 trillion by October 2025. This contraction aligns with the overall weakness observed in the national automotive market.

Key Findings from OJK Data

1. Premium Income: Total vehicle insurance premiums reached Rp 17.09 trillion, representing a significant 5.01% decrease compared to the same period last year.
2. Claims Trend: The value of claims paid out also experienced a 1.39% YoY reduction, suggesting a correlated decline in both premium intake and claims.

Market Context and Implications

Ogi Prastomiyono, Head of Insurance, Pension Fund, and Guarantee Supervision at OJK, noted that the decline in premiums reflects the ongoing challenges in the automotive sector. The contraction in premium income is consistent with the broader market conditions affecting vehicle sales and ownership.

Sector Performance Analysis

The insurance industry's performance is closely tied to the automotive market's health. With vehicle sales remaining subdued, insurance premiums are likely to face continued pressure. The OJK will likely monitor this trend closely to ensure the stability of the insurance sector.

Conclusion

The vehicle insurance market in Indonesia is experiencing a downturn, as evidenced by the decline in premiums and claims. This trend underscores the interconnectedness of the automotive and insurance sectors, with both facing similar market pressures.