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Article: Auto insurance market haunted by tariff war.(FINANCE)
- Article from:
- Indonesian Commercial Newsletter
- Article date:
- April 1, 2007
CopyrightCOPYRIGHT 2007 P.T. Data Consult, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Auto insurance depends much on the condition of car market in the country. Auto insurance business suffered a setback in 2006 down 20% in sales to Rp 3.8 trillion in 2006 from Rp 4.6 trillion in the previous year. The decline came with a drastic fall in car sales, which shrank 40% to 318,000 units in 2006 from 533,000 units in 2005.
The increase in the price of oil fuels late 2005 jacked up bank interest rate resulting in higher inflation rate and weakened the purchasing power of the people.
Cars bought on credit are required to have insurance protection. Most car owners in the country buy their cars on credit. In 2005, premium income from car insurance ...