2020 Country Focus: Indonesia
Mitra Iswara & Rorimpandey (MIR) Insurance Brokers is the oldest and largest independent insurance broker in Indonesia. We have been trading since 1975 and are celebrating our 45th anniversary in 2020. We have a total of 190 employees working in our head office in Jakarta, and in our six other fully operating branches in Bandung, Surabaya, Semarang, Bali, Makassar, and Balikpapan. According to the OJK official release, in 2018, we are the second broker countrywide based on brokerage earnings.
MIR is a general insurance broker with a considerable presence in the more traditional P&C, Employee Benefit, Engineering, Motor Vehicle, and Marine lines, but we are also strengthening our Financial Product team and prioritize especially a trade credit portfolio expansion.
In that regard, Astreos Credit keeps us up to date with a regular worldwide news update and its vast network, and global reach fits perfectly with our strategy of growing a new “export-based” clientele.
Our Trade Credit team is led by our Executive Director, Irwan Iswara, and Assistant General Manager, Marlina Rusli. Both have been in the insurance industry for more than twenty years. We are also in the process of adding another senior staff to enhance the team.
Our approach in trade credit insurance is to :
- Find the most competitive insurance policy terms and conditions that best match our client’s needs,
- Negotiate with the underwriters to increase credit limits,
- Accompany clients on buyer visits when necessary,
- Provide end to end claim handling support
Indonesia economic overview
Since 2015, Indonesia has been growing steadily at an approximately 5% yearly rate, with an inflation rate stable at around 3%. We have a population of about 260 million, and yet, the insurance penetration rate remains short of double digits.
This low penetration indicates a significant potential growth for insurance, and in our opinion, especially for trade credit insurance due to a market where the payment terms remain an issue with an average DSO of 88 days and increasing.
In Indonesia, although most of the local companies offering trade credit insurance are reinsured by either Coface, Euler Hermes, or Atradius, indicating substantial global market support, so far, several country-specific underwriting restrictions have limited the room for growth. As such, we hope that in the future, credit insurance underwriters will be more flexible regarding some of their credit requirements to suit the South East Asia market better.