AAJI: Life insurance industry performance remains stable amid economic dynamics
Jakarta — Albertus Wiroyo, Chairman of the Board of Trustees of the Indonesian Life Insurance Association (AAJI), stated that the commitment to policyholders’ protection was reflected in the life insurance industry’s stable performance throughout 2025 amid economic dynamics.
“Total revenue for the life insurance industry throughout 2025 reached Rp238.71 trillion, or grew approximately 9.3 percent year-on-year. This growth was primarily driven by significant improvement in investment returns,” Albertus said during a press conference in Jakarta on Saturday.
Although total premium income experienced a decline of 1.8 percent annually, this condition reflected a shift in public preference regarding premium payment methods. New business premiums paid regularly increased by 7.8 percent, demonstrating that public interest in life insurance protection remained robust. This was supported by an increase in the total insured population of the life insurance industry, which rose 8.6 percent year-on-year to 168.03 million people.
Handojo Gunawan Kusuma, Head of Training and Human Resources Development (Centre of Excellence) at AAJI, also stated that the life insurance industry continued to execute its core function of providing protection through claims payments and benefits to policyholders.
Throughout 2025, the life insurance industry disbursed a total of Rp146.73 trillion in claims and benefits to approximately 9.59 million beneficiaries. This claims value declined by 7.8 percent compared to 2024, primarily influenced by a decline in surrender claim values of approximately 19 percent. This condition indicated policyholders’ tendency to retain their policies as a form of long-term protection.
Regarding the health insurance sector, claims payments for these products increased by 9.1 percent with a total value of Rp26.74 trillion for both individual and group products.
“Health insurance has become one of the focal points of life insurance industry transformation in 2026. Through the implementation of Financial Services Authority Regulation (POJK) Number 36 Year 2025, it is hoped that health claims management can become more controlled whilst enhancing protection for policyholders,” said Handojo.
Harsya Wardhana Prasetyo, Head of Marketing and Communications at AAJI, also explained that the life insurance industry continued to strengthen its financial position through prudent and diversified investment management.
In total, life insurance industry investments in 2025 reached Rp590.54 trillion, increasing compared to the previous year which was Rp541.55 trillion.
Investment diversification of the life insurance industry was reflected in portfolio distribution across various instruments. The largest investment placement was in Government Securities (SBN) at Rp248.25 trillion or 42 percent of total investments, equity investments of Rp128.72 trillion, mutual funds of Rp74.07 trillion, corporate sukuk of Rp53.45 trillion, and deposits of Rp31.95 trillion.
The stability of the government bond market as well as improvement in domestic equity market performance in the fourth quarter of 2025 was considered to have made a positive contribution to the investment portfolio of life insurance companies, which were largely placed in long-term instruments such as government securities, equities, and mutual funds.
“With the long-term investment characteristics that the life insurance industry possesses, this condition also supported strengthening of investment performance whilst maintaining the companies’ ability to fulfil their obligations to policyholders,” he said.