...Regulated Tariffs Will Enhance Non-Life Underwriting Stability The implementation of insurance tariff regulations in 1Q14 could enhance the stability of the Indonesian non-life industry's underwriting margin and a sustainable bottom-line performance. Indonesia's non-life insurance sector reflects a developing and highly competitive market with a tendency for price-cutting. More than 70 non-life insurers compete for a slice of the market, leading to price discounts of up to 50%. The introduction of tariff regulation could reduce rampant underpricing through setting the floor price. The regulation of ceiling prices could also prevent overpricing. As the circular also regulates the maximum limit of acquisition costs and discounts, this could create a balance between prices charged and risks taken by the insurers New Bancassurance Regulations to be Published Bancassurance has had a growing role as a key distribution channel for life insurance in recent years. It surpassed agency as the dominant...
