The Indonesian insurance industry is controlled by the Directorate of Insurance, a division of the Ministry of Finance, and all matters relating to insurance are regulated by this body.

The Indonesian (non-life) insurance market should be considered as a developing financial services sector in the emerging Indonesian economy. With a few notable exceptions, Indonesian insurance companies are now subject to having minimum Paid-Up Capital requirements (IDR 40 b by 2010 end, IDR 70b by 2012 end, IDR 100b by 2014 end) and continuing to develop and strengthen its technical and professional skills to be in line with today's developed industrial countries.

As at 1 January 2009, there were 88 registered Property and Casualty insurance companies, 43 registered Life insurance companies, about 145 registered insurance brokers plus hundreds of insurance agents. Of these total insurers and brokers, there are 16 international insurers and 4 international insurance brokers licensed in Indonesia.

Insurance policy wordings are generally based on standard contracts approved by the Indonesian Directorate of Insurance. Most classes of insurance coverage are available from the Indonesian insurance market and, in addition, specialist wordings and risk management advice are available from the international brokerage firms.