IHSG Falls Nearly 20%, Are Unit-Linked Insurance Policyholders Panicking?
Jakarta — The Composite Stock Price Index (IHSG) has experienced a sharp depreciation at the start of the year. However, this has not significantly impacted unit-linked insurance products, also known as Investment-Linked Insurance Products (PAYDI).
The IHSG has contracted 19.73% since the start of the year to 7,022.29 as of market close on Monday, 16 March 2026. Market capitalisation has eroded to Rp12.413 trillion from its previous peak of approximately Rp16 trillion.
Ogi Prastomiyono, Chief Executive of the Financial Services Authority’s Insurance, Guarantee, and Pension Funds Division, acknowledged that IHSG volatility at the start of the year can generally affect the investment performance of equity-based unit-linked products in the short term.
“However, as of January 2026, cash claim values for PAYDI recorded a decline of 3.69% year-on-year, which indicates that current market conditions have not yet significantly driven increased fund withdrawals by policyholders,” Ogi explained in a written response on Monday, 16 March 2026.
In general, Ogi assessed that unit-linked products remain designed as protection solutions coupled with an investment component from a medium to long-term perspective.
Based on January 2026 data, unit-linked insurance premiums totalled Rp4.06 trillion, or approximately 22.59% of total life insurance premiums, with growth of 6.56% year-on-year.
“This development indicates that unit-linked performance has begun to stabilise after undergoing adjustments over recent years in line with strengthened regulation and improved product governance,” he said.
Going forward, unit-linked insurance will remain one of the important products in the life insurance sector, although its composition is now more balanced alongside health insurance and endowment products, which have also experienced increased market share. This structure reflects the increasingly diverse range of protection product options available to the public.