PT Reasuransi Indonesia Utama (Persero), commonly known as Indonesia Re, has developed several strategies in anticipation of the year 2025 to address macroeconomic challenges and potential shifts under a new government. Widyo Primastowo, Head of Client Market and Treaty Division at Indonesia Re, highlighted that one of the company’s main focuses is to improve the portfolio in business lines that have not been yielding optimal profits. "The largest business for Indonesia Re is still general reinsurance, so we are focusing on improving it, particularly in terms and conditions," Widyo said during a press conference in Lembang, Bandung, following a Media Engagement event on December 7, 2024. Alongside tightening terms and conditions, the company also plans to refine pricing and optimize the structure of its reinsurance offerings, which started in the 2023 underwriting process.
Widyo also expressed concerns about how the new government might reshape the real sector, which is closely tied to the insurance and reinsurance industries. He explained that a decline in public purchasing power could lead to a decrease in insurance demand, particularly in sectors such as vehicle insurance, which is the third-largest segment in the industry. Furthermore, Widyo pointed out that macroeconomic factors like lower interest rates could influence the insurance sector significantly, especially in areas such as property insurance and credit insurance. Lower interest rates tend to encourage consumers to take out mortgages and business loans, thereby affecting both credit insurance and the broader insurance market.
