AAJI: Employee benefit strengthens as alternative insurance distribution
The Indonesian Life Insurance Association (AAJI) sees a shift in the dynamics of alternative distribution for life insurance products, with the employee benefit channel beginning to strengthen amid pressure on direct marketing.
AAJI Board Chairman Albertus Wiroyo said new business premiums through the employee benefit consultant channel grew 11.4 percent to around Rp5.96 trillion in the first half of 2026.
“Employee benefit consultants, marketing personnel who sell and market employee benefit products, recorded growth of 11.4 percent to around Rp5.96 trillion,” Albertus said at a press conference on the Life Insurance Industry Performance Report for the First Half of 2026 in Jakarta on Monday.
This growth occurred while direct marketing, which is also part of alternative distribution, experienced a decline. Premiums through that channel fell 8.3 percent to Rp13.57 trillion.
In addition to employee benefit, the broker channel also recorded significant growth. New business premiums through brokers grew 27.4 percent to Rp2.57 trillion.
According to AAJI, this development indicates a shift in the dynamics of alternative distribution channels. The growth of employee benefit and brokers took place amid declines in direct marketing and e-commerce, prompting the industry to develop more diverse distribution approaches to reach the public.
Amid these changes, bancassurance remains the main distribution channel for life insurance. Based on weighted calculations, new business premiums through bancassurance reached Rp7.85 trillion, while direct marketing and agency each stood at around Rp4.76 trillion.
On an unweighted basis, new business premiums through bancassurance reached Rp30.89 trillion, growing 22.6 percent. This makes bancassurance the channel with the largest contribution to new business.
Overall, new business growth in the life insurance industry remains intact. AAJI recorded weighted new business premiums of Rp21.06 trillion in the first half of 2026, growing 11.5 percent. On an unweighted basis, new business premiums reached Rp57.75 trillion, growing 20.5 percent.
AAJI believes this growth shows that public demand for life insurance products remains steady. However, this new business growth needs to be accompanied by efforts to maintain the continuity of protection for existing policyholders.
This is because renewal premiums contracted 6.7 percent to Rp37.01 trillion. Renewal premiums are seen as reflecting the continuity of protection already held by the public.
“Industry growth needs to be supported not only through acquiring new customers, but also by maintaining the continuity of protection for existing customers,” Albertus said.
AAJI considers diversification of distribution channels important to expand access to insurance protection in line with consumer behaviour and preferences. Partnerships with banks and the role of marketing personnel remain important parts of distribution, while the growth of employee benefit and brokers shows the increasingly diverse ways the industry reaches prospective customers.
Thus, strengthening distribution channels is one of the industry’s strategies to sustain new business growth. However, the next challenge is ensuring that acquisition growth goes hand in hand with the continuity of protection for existing policyholders.