Jakarta - The Indonesian Life Insurance Association (AAJI) reported the performance of 56 life insurance companies throughout 2024 which showed positive growth in various key indicators, including an increase in premium income and the number of insured.
Chairman of the AAJI Executive Board, Budi Tampubolon, said that the life insurance industry continued to grow amid global economic dynamics.
“Throughout 2024, the industry recorded premium income of Rp185.39 trillion, an increase of 4.3% over the previous year. This growth was driven by new business premiums of Rp108.32 trillion and continued premiums of Rp77.07 trillion, each of which rose 4.3%,” Budi explained in Jakarta, Friday (28/2/2025).
In terms of product types, traditional insurance premiums grew significantly by 18.7% to Rp110.36 trillion, contributing 59.5% of total premiums, while 40.5% came from unit-linked. Sharia insurance products also experienced growth of 10.4% to IDR22.61 trillion, in line with the increasing public awareness of sharia-based financial products.
In terms of protection coverage, the number of insured in the life insurance industry surged 80.1% to 154.64 million people, driven by the rapid growth of the group insured segment (107.7%) to 133.05 million people.
“This increase shows that a greater scope of people who successfully have insurance protection with the help of facilities from companies or organizations. This reflects the industry's role in providing broader financial protection solutions for the community,” Budi added.
AAJI's Head of Product, Risk Management and GCG, Fauzi Arfan, emphasized that throughout 2024, the life insurance industry has paid Rp160.07 trillion to 9.08 million beneficiaries, reflecting the industry's commitment to protecting the Indonesian people.
“This figure shows that life insurance remains a key pillar in supporting the economic resilience of Indonesian families. Whether through life benefits, end-of-contract benefits, or flexibility in accessing funds, the industry continues to ensure that customers get optimal financial protection,” said Fauzi.
In more detail, several types of claims that show a positive trend for the life insurance industry include:
Death claims reached Rp11.29 trillion, ensuring that customers' families still have financial protection.
End-of-contract claims increased 13.9% to Rp18.30 trillion, reflecting the long-term benefits that customers receive after completing their coverage period.
Surrender claims fell 13.3% to IDR77.15 trillion, signaling better awareness of the importance of life protection.
Partial withdrawal claims rose 17% to IDR19.87 trillion, indicating that insurance policies remain a liquidity solution for customers who need funds without having to lose protection completely.
Meanwhile, health claims increased 16.4% to IDR24.18 trillion, with more manageable growth compared to the previous year's 24.6%.
“We are optimistic that with the new OJK rules that will be issued in 2025, including further arrangements regarding Coordination of Benefit (CoB), health claims management can be more efficient. This will provide certainty for the private health insurance industry while ensuring protection benefits remain optimal for the community,” said Fauzi.
Head of the AAJI Agency Department, Wianto Chen, highlighted the increase in total assets and investment as a form of industry responsibility in maintaining long-term financial stability.
“Total assets of the life insurance industry increased 0.7% to Rp616.75 trillion, higher than the previous year's growth of only 0.3%. Meanwhile, total industry investment reached Rp541.40 trillion, up 0.2%,” Wianto said.
One of the largest investment growths came from Government Securities (SBN), which increased by 11.9% with a total contribution of Rp205.03 trillion (37.9% of total investment).
“The life insurance industry continues to play an important role in the national economy, one of which is through increased investment in SBN, which not only supports industry stability but also contributes to national development,” Wianto explained.
Meanwhile, investments in stocks and mutual funds contributed 24.7% and 12.9% of the total investment portfolio, respectively.
The life insurance industry is currently preparing for the implementation of PSAK 117 in 2025 and capital regulations in 2026, which aim to increase transparency and sustainability of the industry. Adapting to new regulations and continuing to innovate in product development, the life insurance industry has positive growth prospects. To ensure sustainability in the future, synergy between insurance companies, regulators, and the community will be a key factor in facing the challenges and opportunities ahead.
“The life insurance industry continues to be committed to providing comprehensive and efficient protection for the community, one of which is through the implementation of POJK Health Insurance and the implementation of the Coordination of Benefit (CoB) mechanism. We are optimistic that this step will not only increase customer confidence, but also strengthen the sustainable growth of the life insurance industry in the coming years and provide optimal benefits for all Indonesian people,” Budi concluded. (InfoPublik.id)