The Chairperson of the Board of Directors of the Indonesian Life\nInsurance Association (AAJI), Albertus Wiroyo, stated that the\ncommitment to protecting policyholders is reflected in the life\ninsurance industry\u2019s stable performance throughout 2025 amid economic\ndynamics.<\/p>\n
\u201cTotal life insurance industry revenue throughout 2025 reached Rp\n238.71 trillion, or approximately 9.3 per cent growth year-on-year. This\ngrowth was primarily driven by significant increases in investment\nreturns,\u201d Albertus said at a press conference in Jakarta on Friday, as\nreported on Saturday, 14 March 2026.<\/p>\n
Despite total premium revenue experiencing a decline of 1.8 per cent\nyear-on-year, this condition reflects a shift in public preference\nregarding premium payment methods. New business premiums paid regularly\nincreased 7.8 per cent, demonstrating maintained public interest in life\ninsurance protection. This was supported by an increase in total insured\nindividuals in the life insurance industry, which rose 8.6 per cent\nyear-on-year to 168.03 million people.<\/p>\n
The Head of the Training and Human Resources Development Division\n(Centre of Excellence) at AAJI, Handojo Gunawan Kusuma, also noted that\nthe life insurance industry continues to fulfil its primary function of\nproviding protection through claim and benefit payments to\npolicyholders.<\/p>\n
Throughout 2025, the life insurance industry paid out total claims\nand benefits of Rp 146.73 trillion to approximately 9.59 million\nbeneficiaries. The claims value declined 7.8 per cent compared to 2024,\nprimarily influenced by a reduction in surrender value claims of\napproximately 19 per cent. This condition is said to indicate a tendency\namong policyholders to retain their policies as a form of long-term\nprotection.<\/p>\n
Regarding the health insurance sector, claims payments for these\nproducts increased 9.1 per cent with a total value of Rp 26.74 trillion\nfor both individual and group products.<\/p>\n
\u201cHealth insurance has become one of the key focuses of the life\ninsurance industry\u2019s transformation in 2026. Through implementation of\nthe Financial Services Authority Regulation (POJK) Number 36 of 2025, it\nis hoped that health insurance claim management can become more\ncontrolled whilst enhancing protection for policyholders,\u201d said\nHandojo.<\/p>\n
The Head of the Marketing and Communications Division at AAJI, Harsya\nWardhana Prasetyo, explained that the life insurance industry continues\nto strengthen its financial position through prudent and diversified\ninvestment management.<\/p>\n
In total, life insurance industry investment in 2025 reached Rp\n590.54 trillion, increasing from the previous year\u2019s Rp 541.55\ntrillion.<\/p>\n
Investment diversification in the life insurance industry is\nreflected in portfolio distribution across various instruments. The\nlargest investment placement is in State Securities (SBN) at Rp 248.25\ntrillion or 42 per cent of total investment, investment in listed\nequities at Rp 128.72 trillion, mutual funds at Rp 74.07 trillion,\ncorporate sukuk at Rp 53.45 trillion, and deposits at Rp 31.95\ntrillion.<\/p>\n
The stability of the government bond market and improved performance\nof the domestic equities market in the fourth quarter of 2025 are\nconsidered to have made a positive contribution to the investment\nportfolio of life insurance companies, which are largely placed in\nlong-term instruments such as SBN, equities, and mutual funds.<\/p>\n
\u201cWith the long-term investment characteristics held by the life\ninsurance industry, this condition also supports strengthened investment\nperformance whilst maintaining companies\u2019 ability to meet their\nobligations to policyholders,\u201d he concluded.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/aaji-life-insurance-industry-performance-remains-stable-1773471356", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }