General Insurance Premium Growth Slows to 2.7% in 2025

The Financial Services Authority (OJK) has recorded a slowdown in premium income growth for Indonesia’s general insurance industry. Statistical data shows only a modest increase of 2.7% year-on-year (YoY), reaching Rp 120.83 trillion in 2025.

The Indonesian General Insurance Association (AAUI) has identified several factors contributing to this limited growth.

AAUI Chairman Budi Herawan highlighted that incomplete recovery in domestic purchasing power is one key cause. The decline in motor vehicle sales throughout 2025 serves as an indicator of this weakness.

“Additionally, global macroeconomic conditions are also significantly influencing the sector, particularly in the corporate segment,” Budi told Kontan on Sunday, 1 March 2026.

Demand for commercial insurance in 2025 faced numerous obstacles. Budi cited global economic uncertainty, international trade slowdown, interest rate dynamics, and geopolitical pressures as factors impacting business expansion and realisation of corporate projects.

Insurance companies have implemented stricter risk selection to maintain portfolio quality. “As a result, premium growth has become more moderate,” Budi explained.

Budi expressed hope that domestic and global economic pressures will not persist long, so that the general insurance industry can achieve stronger growth in the future.

OJK data also recorded gross claims in the general insurance industry at Rp 54.01 trillion by the end of 2025, an increase of 4.3% year-on-year.