Members Report: MIR Insurance Brokers AAA Conference | 18 May 2018 Auckland, New Zealand Members Report: MIR Insurance Brokers

AAA Members Report – Indonesia Country: Indonesia Name of Member: PT Mitra, Iswara & Rorimpandey (MIR Insurance Brokers) Membership details - Annual Turnover 2017: USD 91,804,688 - Number of Staff: 169 staff - Location: Jakarta (HO) and 6 branches (Surabaya, Semarang, Bandung, Bali, Makassar, Balikpapan) Countries of Operation: Indonesia

AAA Members Report – Indonesia Professional Indemnity Details Limit of Indemnity: USD 10,000,000 Legislative Requirements: USD 500,000 Insurer: CHUBB GENERAL INSURANCE INDONESIA

AAA Members Report – Indonesia Who regulates Insurance Brokers in the country: The Financial Services Authority (Otoritas Jasa Keuangan – OJK) What Insurance Broker and Agent Education Programs exists: APPARINDO (The Association of Indonesia Insurance and Reinsurance Brokers) AAMAI (The Indonesian Insurance Institute): AAAIK, AAIK APARI (The Association of Indonesian Qualified Insurance & Reinsurance Brokers): AAPAI (matched against ANZIIF Affiliate CIP), APAI (matched against ANZIIF Associate CIP), CIIB (matched against ANZIIF Senior Associate CIP)

AAA Members Report – Indonesia What Insurance Broker and Agent Education Programs exists (2): BNSP (National Professional Certification Board): Level 5 Competency: Marketing Level 6 Competency: Director Level 7 Competency: Tenaga Ahli (Registered Insurance Expert) How many Insurers operate in the country: 129 Companies (75 non-life, 54 life), and 6 reinsurance companies

AAA Members Report – Indonesia Market Structure 2012 2013 2014 2015 2016 Insurers 140 141 145 146 Brokers 179 182 157 203 209 Gross Premium including R/I Premium (Trillion Rp) (Non Life) 44.24 46.37 54.70 60.25 66.61 Brokerage including R/I Brokerage (Trillion Rp) 1.19 1.6 1.69 2.27 2.07

AAA Members Report – Indonesia Market Conditions - Number of Insurers decreasing, increasing, stable: Stable at 83 General Insurer/ Reinsurer - Insurance capacity decreasing, increasing, stable: stable - Premiums decreasing, increasing, stable: increasing, a growth of 10.5% compared to 2015. However, 2017 only see 2.5% growth - Commissions decreasing, increasing, stable: decreasing - Average Broker income percentage earned as fees: roughly around 5%

AAA Members Report – Indonesia Number of Brokers decreasing, increasing, stable: Increasing from 203 to 211, increase for all category i.e. local broker, joint venture broker and also reinsurance broker Overall level of Insurance Business decreasing, increasing, stable: Increasing Percentage of business controlled direct by Brokers: 35% Percentage of business controlled direct by insurers: 55% Percentage of business controlled by other outlets: 10%

RANKING OF INDONESIA INSURANCE BROKER IN 2016* AAA Members Report – Indonesia RANKING OF INDONESIA INSURANCE BROKER IN 2016* *) Source OJK

RANKING OF INDONESIA NON LIFE INSURANCE COMPANY IN 2016* AAA Members Report – Indonesia RANKING OF INDONESIA NON LIFE INSURANCE COMPANY IN 2016* *) Source OJK

AAA Members Report – Indonesia Information Technology used by Brokers (including Internet): Self-developed E-Marine System Self-developed E-Claim System Self-developed E-Endorsement System Premiro.com via subsidiary company namely MIT

AAA Members Report – Indonesia Political issues at time of report: 2018 is an election year of regional head i.e. governor, major etc. except for Jakarta. And 2019 is a year to elect president and member of the parliament. Refer to the Jakarta election last year, we can anticipate the similar trick will be used especially for presidential election. The political situation has already been heating up since April 2018 Economy at time of report: Stable economic growth i.e. 2017 is 5.07%, projected 2018 is 5.3%. We need to anticipate potential disruption as a result of the political event. China investment for 2018 and 2019 will be in “wait and see” status

AAA Members Report – Indonesia Member’s view of Insurance Broking over the next three years: The new FSA (OJK) Board comprises of mainly Bankers. We can expect clean government, although the impression in the market viewing the new regime of OJK is rather slow in action. Another good thing is the new OJK does not see publicing new regulation as their KPI. So, we can expect more supervision rather than issuing new regulation without supervision. Any major issues to be resolved: Tariff and Regulation Member’s principle activities over last year: Continue to expand the R/I Broker, Web Broker, International Business and also the Compliance / Internal Audit with the strengthening of the internal procedures. Member’s planned activities over the coming year: Enhance Business Development in all line of business to ensure maintaining top 3 position