The Indonesian life insurance industry is predicted to perform better this year compared to 2020, on the back of optimism generated by COVID-19 vaccines and new state owned insurer IFG Life.
Indonesian Life Insurance Association’s (AAJI) executive director, Mr Togar Pasaribu, predicts that COVID-19 vaccines will create new enthusiasm as a driving force for the economy, and consequently propel the insurance industry. The restructuring of the business of the financially stricken government-owned life insurer, Asuransi Jiwasraya, through IFG Life will also lend impetus to the insurance market, reported Detik Finance.
IFG Life is considered to have bright prospects because it is a new subsidiary of a state-owned company in the life insurance sector, namely, IFG, which was previously known as Bahana Indonesia Business Financing (BPUI).
The government has approved funds of IDR22tn ($1.58bn) for the establishment of IFG Life. In addition, IFG is also preparing other funds to develop IFG Life’s business, so that the total funds prepared for IFG Life would reach IDR26.7tn.
The director general of State Assets of the Ministry of Finance, Isa Rachmatawarta, said last month, “This new life insurance company (IFG Life) will take over the restructured Jiwasraya portfolio. Because it has been restructured, of course, this will be a healthy portfolio. When it is healthy at the first opportunity, IFG Life will get a good start.”