IAG has achieved its ambition of entering a sixth Asian market, gaining an Indonesian insurance licence through the purchase of a small insurer there.

PT Asuransi Parolamas is a general insurer writing commercial and personal lines, but its significance to IAG is its licence, which allows entry to the market.

MD and CEO Mike Wilkins announced the acquisition in a speech to the American Chamber of Commerce in Melbourne on Friday, where he told Australian businesses to “be brave” and take up the vast opportunities offered by engaging with Asia.

“This is the first step in our plan to enter the Indonesian market,” he said. “With the world’s fourth-largest population and a sizeable and growing middle class, we’re excited by the opportunities that Indonesia presents.”

IAG already operates in China, India, Thailand, Malaysia and Vietnam, and Indonesia has been the missing piece in its expansion strategy.

Mr Wilkins says the company is talking to State Bank of India about increasing its share in their insurance joint venture SBI General from 26% to 49%. It follows changes in India’s foreign ownership laws.

“We are working through that with our partner right now,” he said.

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