1. Members Report: MIR Insurance Brokers
AAA Conference | 24 May 2019
Beijing, China
Members Report: MIR Insurance Brokers

2. Name of Member: PT Mitra, Iswara &
AAA Members Report – Indonesia
Country: Indonesia
Name of Member: PT Mitra, Iswara &
Rorimpandey (MIR Insurance Brokers)
Membership details
- Annual Premium Turnover 2018: US$ 80,358,868
(off-setting by the discount)
- Number of Staff: 174 staff

3. AAA Members Report – Indonesia
Countries of Operation: Indonesia
- Location: Jakarta (HO) and 6 branches (Surabaya, Semarang, Bandung, Bali, Makassar, Balikpapan)

4. AAA Members Report – Indonesia
% of premium by Class of Insurance

5. AAA Members Report – Indonesia
Professional Indemnity Details
- Limit of Indemnity: USD 10,000,000
- Legislative Requirements: USD ,000
- Insurers: CHUBB GENERAL INSURANCE INDONESIA

6. 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)

7. 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)

8. AAA Members Report – Indonesia
How many Insurers operate in the country:
140 Companies (79 non-life, 61 life), and 6 reinsurance companies
How many Insurers are active in Broker markets:
All non-life Insurers are trying to enter into Broker business, in our opinion the total insurer active in broker markets is not more than 40 companies

9. AAA Members Report – Indonesia
Market Structure
2013
2014
2015
2016
2017
Insurers
141
145
146
152
Brokers
182
157
203
209
212
Gross Premium including R/I Premium (Trillion Rp) (Non Life)
46.37
54.70
60.25
66.61
70.42
(US$ 5,192,066,651.92)
Brokerage including R/I Brokerage (Trillion Rp)
1.6
1.69
2.27
2.07
2.20
(US$ 162,206,001.62)
Note: ROE December 2017: USD 1 = IDR 13,563

10. Market Conditions AAA Members Report – Indonesia
- Number of Insurers decreasing, increasing, stable:
Stable at 86 General Insurer/ Reinsurer
- Insurance capacity decreasing, increasing, stable:
Stable
- Premiums decreasing, increasing, stable: increasing, a growth of 5.7% compared to 2016

11. Market Conditions AAA Members Report – Indonesia
- Commissions decreasing, increasing, stable: increasing
- Average Broker income percentage earned as fees:
less than 5%
- Average Broker income percentage earned as commission:
at least 95% is a commission income

12. AAA Members Report – Indonesia
Number of Brokers decreasing, increasing, stable:
Increasing from 209 to 212, 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 by Brokers: 35%
Percentage of business controlled by insurers (direct): 50%
Percentage of business controlled by other intermediaries e.g. banks: 15%

13. RANKING OF INDONESIA INSURANCE BROKER IN 2017
AAA Members Report – Indonesia
RANKING OF INDONESIA INSURANCE BROKER IN 2017
(For direct Broker only)

14. RANKING OF INDONESIA NON LIFE INSURANCE COMPANY IN 2017
AAA Members Report – Indonesia
RANKING OF INDONESIA NON LIFE INSURANCE COMPANY IN 2017

15. AAA Members Report – Indonesia
Note:
Total Gross Premium in non-life direct insurance market is IDR 63.5 Trillion (USD 4.7bio) which is a 5.6% growth
Total Premium of JV Companies: IDR 16.7 Trillion (USD 1.232bio) equivalent to 26.3% market share which is up from 2016

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

17. AAA Members Report – Indonesia
Political issues at time of report: The Election has gone through relatively smooth. Presidential candidate Prabowo Subianto called for irregularities in data entry from polling stations to be corrected, as his team unfurled a long list of charges against the election authorities and incumbent Joko Widodo that he said show the "blatant and flagrant violation of basic norms of democracy" in Indonesia's April 17 elections. Similarly, the incumbent team also has a long list of accusation against Prabowo Subianto. At the end of the day, hopefully it can be settled according to the law.

18. AAA Members Report – Indonesia
Economy at time of report: Indonesia’s economic growth slowed in the first quarter amid a global slowdown that hurt the nation’s exports. Gross domestic product, the broadest measure of goods and services produced in the economy, rose 5.07 percent in the first quarter from a year ago

19. Member’s view of Insurance Broking over the next 3 years:
AAA Members Report – Indonesia
Member’s view of Insurance Broking over the next 3 years:
The market will remain difficult with the insurers trying to keep the tariff regime in order to increase their margin and to limit the scope of broking market. However, in any difficult situation lies opportunity through the clever use of reinsurance market globally.

20. AAA Members Report – Indonesia
Member’s principle activities/successes over last year:
Continue to expand the R/I Broker, Web Broker, International Business (increase the country we work with e.g. Taiwan) and also the Compliance / Internal Audit with the strengthening of the internal procedures. Initiate the setting up of Business Development unit and Banking Business unit to add on the growth.

21. AAA Members Report – Indonesia
Any major issues/challenges: Tariff and Regulation
Member’s planned activities over the next 3 years: Enhance Business Development in all line of business to ensure maintaining top 3 position