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

2. 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

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

4. 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)

5. 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

6. 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

7. 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 However, 2017 only see 2.5% growth
- Commissions decreasing, increasing, stable: decreasing
- Average Broker income percentage earned as fees:
roughly around 5%

8. 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%

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

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

11. 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

12. 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 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

13. 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