Indonesia’s growing economy will drive insurance premium growth, especially in property, credit guarantee and engineering, according to Fitch Ratings.

The biggest economy in southeast Asia is projected to grow 5.3% this year, compared with 5% last year.

“Fitch expects the credit profiles of our rated insurers to remain steady, underpinned by stable capitalisation and manageable investment risk,” the ratings agency says.

The industry’s non-life loss ratio has improved amid lower claims for property and motor vehicles last year, and the trend is expected to continue, Fitch says.

Property and motor vehicle account for the bulk of non-life premium, respectively making up 29% and 24% of the market last year.