Customer Protection Remains Priority as Life Insurance Industry Strengthens Resilience in 2025
Total insured lives in the life insurance industry rose 8.6% to 168.03 million people
Jakarta – The Indonesian Life Insurance Association (AAJI) reported the performance of 57 life insurance companies for the period January–December 2025. The life insurance industry continues to demonstrate its commitment to strengthening protection for policyholders whilst maintaining public trust. This commitment aligns with the life insurance industry’s principles of continuous transformation, upholding integrity and expanding access to more inclusive life insurance protection for society.
AAJI Board Chairman Albertus Wiroyo explained that the commitment to policyholder protection is reflected in the industry’s stable performance throughout 2025 amid economic dynamics, as well as various strategic steps being taken to strengthen industry resilience going forward.
“Total life insurance industry revenue throughout 2025 reached Rp238.71 trillion, or grew approximately 9.3% year-on-year. This growth was primarily driven by significant increases in investment returns,” said Albertus.
He added that although total premium income experienced a slight decline of 1.8% annually, this condition more reflects changes in public preferences in selecting premium payment methods.
“Regular new business premiums actually increased by approximately 7.8%, which shows that public interest in life insurance protection remains intact. This is also supported by the increase in total insured lives in the life insurance industry, which rose 8.6% year-on-year to 168.03 million people,” added Albertus.
Claims and Benefits of Rp146.73 Trillion Paid to 9.59 Million Members of the Public
From the perspective of benefits received by society, AAJI Head of Training and Human Resource Development (Centre of Excellence) Handojo Gunawan Kusuma stated that the life insurance industry continues to carry out its primary function of providing protection through claims and benefits payments to policyholders.
“Throughout 2025, the life insurance industry has paid total claims and benefits of Rp146.73 trillion to approximately 9.59 million beneficiaries,” explained Handojo.
The claims value declined 7.8% compared to 2024, which was primarily influenced by a decline in surrender claim values of approximately 19%. This condition indicates a tendency for policyholders to maintain their policies as a form of long-term protection.
From the health insurance sector, claims payments for this product again experienced an increase of 9.1% with a total value of Rp26.74 trillion, both for individual and group products.
“Health insurance is one of the transformation focuses of the life insurance industry in 2026. Through the implementation of OJK Regulation Number 36 of 2025, it is hoped that health claims management can become more controlled whilst improving protection for policyholders,” added Handojo.
Investment Diversification Supports Stability and Obligation Fulfilment
Meanwhile, AAJI Head of Marketing & Communication Harsya Wardhana Prasetyo explained that the life insurance industry is also continuously strengthening its financial position through prudent and diversified investment management.
“Total life insurance industry investments in 2025 reached Rp590.54 trillion, an increase compared to the previous year which was Rp541.55 trillion,” said Harsya.
Investment diversification in the life insurance industry is reflected in the spread of portfolios across various instruments. The largest investment placement is in State Securities amounting to Rp248.25 trillion or approximately 42% of total investments. Meanwhile, investments in listed shares reached Rp128.72 trillion, mutual funds Rp74.07 trillion, corporate sukuk Rp53.45 trillion, and deposits Rp31.95 trillion.
The stability of the government bond market as well as improvements in domestic equity market performance in the fourth quarter of 2025 contributed positively to the investment portfolio of life insurance companies, which are largely placed in long-term instruments such as State Securities, shares, and mutual funds.
“With the long-term investment characteristics possessed by the life insurance industry, this condition also supports strengthening investment performance whilst maintaining the ability of companies to meet their obligations to policyholders,” explained Harsya.
Industry Initiatives Strengthen Sustainability
Closing the presentation, Albertus Wiroyo affirmed that AAJI together with all industry players continue to drive transformation of the life insurance industry to become increasingly strong, sustainable, and trusted by society.
AAJI is developing the AAJI Industry University as a learning platform for industry human resources. Additionally, quality improvements in life insurance agents are also carried out through marketing personnel certification via AAJI’s Professional Certification Institute (LSP).
On the other hand, the industry is also implementing health insurance product transformation in line with OJK Regulation Number 36 of 2025, to ensure that marketed products are increasingly transparent, sustainable, and provide optimal protection for policyholders.
The industry is also continuing to prepare itself to meet provisions for capital strengthening as well as obligations regarding spin-off of sharia business units, both of which have implementation deadlines at the end of 2026.
“These various steps are part of the industry’s efforts to continue transforming through improvements in human resource integrity and expansion of more inclusive protection for society. Going forward, together with all member companies, we are committed to building a life insurance industry that is increasingly strong, sustainable, and trusted by society,” concluded Albertus.