Sinar Mas Motor Insurance Sees Significant Premium Growth

Driven by Credit Sales and Multifinance Partnerships

PT Asuransi Sinar Mas (ASM) recorded an 8.57% year-on-year increase in gross premium income from motorcycle insurance in October 2025, reaching Rp292 billion. This growth is primarily attributed to the dominance of multifinance business sources in their portfolio, aligning with the public's preference for purchasing motorcycles through credit financing schemes.

Key Factors Behind the Growth

1. Multifinance Business Dominance: The motorcycle insurance portfolio is largely driven by multifinance business sources, reflecting the industry trend where about 60% of motorcycle purchases are made through credit schemes.
2. Strategic Partnerships: Asuransi Sinar Mas continues to collaborate with financing companies and dealers to boost premium growth in this segment.
3. Market Conditions: National motorcycle sales showed positive momentum, growing 4.09% month-on-month in October 2025 to 590,362 units, the highest monthly sales in the year.

Industry Context and Future Outlook

While Asuransi Sinar Mas experienced growth, the overall motor vehicle insurance line recorded a 4.71% year-on-year decrease in gross premium income to Rp15.45 trillion as of September 2025, according to the Financial Services Authority (OJK). Despite this, Sinar Mas remains optimistic about continuing its growth trend through strategic partnerships and product innovation.

Challenges and Opportunities

1. Claim Ratio Trends: The company has seen an annual increase in the claim ratio for motorcycle insurance, though it remains manageable.
2. Product Preferences: The most popular insurance coverage remains Total Loss Only (TLO), aligning with the high risk of motorcycle theft in Indonesia.
3. Growth Targets: Asuransi Sinar Mas aims for 15% premium growth in 2026, supported by continued collaboration with multifinance partners and market-relevant product innovations.

The positive growth trajectory of Asuransi Sinar Mas in the motorcycle insurance segment highlights the importance of strategic partnerships in the multifinance sector and the company's ability to navigate market trends effectively.