The Indonesian insurance market possesses strong potential for long term growth. Drivers will include increased awareness of insurance and changes in the technology ecosystem.

In the report Insurance in Indonesia: Market and IT overview, Celent looks at insurance business trends in Indonesia, and estimates spending on the nation’s insurance technology systems. The report further identifies the drivers for business growth in the Indonesian insurance market.

Celent estimates that IT spending in the Indonesian insurance market will reach US$640 million in 2015, representing a CAGR of 29.5% from 2010 to 2015.

“A number of drivers point to the future growth of the Indonesian insurance market. Indonesia has a large population, yet the insurance penetration rate is still quite low,” says KyongSun Kong, Analyst with Celent’s Asian Financial Services Group, “With increased awareness of insurance, the market should see strong long term growth.”

This report also includes recommendations for financial institutions and vendors that are considering expanding their business in the Indonesian insurance market.