The engineering insurance segment is expected to remain under pressure through 2026, with its performance continuing to be shaped by conditions in the construction and infrastructure sectors.
PT Asuransi Jasa Indonesia (Jasindo) Corporate Secretary Brellian Gema Widayana said demand for engineering insurance remains closely linked to the pace of infrastructure development and construction activity, which continue to face several challenges. As a result, the sector is likely to experience a challenging operating environment in the coming year, reported Kontan ID.
The engineering insurance segment remains highly dependent on project development, with business performance in any given period largely determined by the progress and implementation of projects across various sectors.
Mr Widayana said the engineering insurance segment is influenced by several factors, including project timelines, construction cost adjustments and the procurement of materials and equipment. He added that movements in the rupiah exchange rate also warrant close monitoring, as they could affect project costs, although the extent of the impact varies depending on the characteristics of each project. Despite these challenges, demand for engineering insurance is expected to remain resilient, particularly for strategic infrastructure and development projects that are already underway.