AAJI: Life Insurance Industry Performance Remains Stable
The Chairperson of the Board of Directors of the Indonesian Life Insurance Association (AAJI), Albertus Wiroyo, stated that the commitment to protecting policyholders is reflected in the life insurance industry’s stable performance throughout 2025 amid economic dynamics.
“Total life insurance industry revenue throughout 2025 reached Rp 238.71 trillion, or approximately 9.3 per cent growth year-on-year. This growth was primarily driven by significant increases in investment returns,” Albertus said at a press conference in Jakarta on Friday, as reported on Saturday, 14 March 2026.
Despite total premium revenue experiencing a decline of 1.8 per cent year-on-year, this condition reflects a shift in public preference regarding premium payment methods. New business premiums paid regularly increased 7.8 per cent, demonstrating maintained public interest in life insurance protection. This was supported by an increase in total insured individuals in the life insurance industry, which rose 8.6 per cent year-on-year to 168.03 million people.
The Head of the Training and Human Resources Development Division (Centre of Excellence) at AAJI, Handojo Gunawan Kusuma, also noted that the life insurance industry continues to fulfil its primary function of providing protection through claim and benefit payments to policyholders.
Throughout 2025, the life insurance industry paid out total claims and benefits of Rp 146.73 trillion to approximately 9.59 million beneficiaries. The claims value declined 7.8 per cent compared to 2024, primarily influenced by a reduction in surrender value claims of approximately 19 per cent. This condition is said to indicate a tendency among policyholders to retain their policies as a form of long-term protection.
Regarding the health insurance sector, claims payments for these products increased 9.1 per cent with a total value of Rp 26.74 trillion for both individual and group products.
“Health insurance has become one of the key focuses of the life insurance industry’s transformation in 2026. Through implementation of the Financial Services Authority Regulation (POJK) Number 36 of 2025, it is hoped that health insurance claim management can become more controlled whilst enhancing protection for policyholders,” said Handojo.
The Head of the Marketing and Communications Division at AAJI, Harsya Wardhana Prasetyo, explained that the life insurance industry continues to strengthen its financial position through prudent and diversified investment management.
In total, life insurance industry investment in 2025 reached Rp 590.54 trillion, increasing from the previous year’s Rp 541.55 trillion.
Investment diversification in the life insurance industry is reflected in portfolio distribution across various instruments. The largest investment placement is in State Securities (SBN) at Rp 248.25 trillion or 42 per cent of total investment, investment in listed equities at Rp 128.72 trillion, mutual funds at Rp 74.07 trillion, corporate sukuk at Rp 53.45 trillion, and deposits at Rp 31.95 trillion.
The stability of the government bond market and improved performance of the domestic equities market in the fourth quarter of 2025 are considered to have made a positive contribution to the investment portfolio of life insurance companies, which are largely placed in long-term instruments such as SBN, equities, and mutual funds.
“With the long-term investment characteristics held by the life insurance industry, this condition also supports strengthened investment performance whilst maintaining companies’ ability to meet their obligations to policyholders,” he concluded.