Life Insurance Industry Revenue Drops by 6 Per Cent

The Indonesian Life Insurance Association (AAJI) recorded total revenue for the life insurance industry at Rp 47.63 trillion in the first quarter of 2026. This figure represents a 6 per cent decrease from the revenue of Rp 50.66 trillion recorded during the same period the previous year.

“From January to March 2026, the life insurance industry booked a total overall revenue of Rp 47.63 trillion,” stated Albertus Wiroyo, Chairman of the AAJI Board of Directors, in a press release on Tuesday, 2 June 2026.

In detail, unweighted premium income fell by 0.5 per cent year-on-year from Rp 47.50 trillion to Rp 47.27 trillion. Meanwhile, weighted premium income decreased by 4.5 per per cent from Rp 31.49 trillion to Rp 30.08 trillion.

Albertus noted that new business premiums grew by 5.0 per cent year-on-year to Rp 27.9 trillion. Concurrently, the number of insured individuals grew by 20.9 per cent to 118.28 million people. Claims and benefit payments in the first quarter of 2026 were recorded at Rp 38.73 trillion, a 1.5 per cent increase from the Rp 38.16 trillion recorded in the previous year.

AAJI Head of Literacy and Consumer Protection, Wianto Chen, stated that one component of claims that saw a significant increase was end-of-contract claims, which surged by 112.0 per cent to Rp 10.45 trillion. This indicates that more policyholders have reached the end of their coverage period and are receiving benefits in accordance with policy terms.

Conversely, surrender claims fell by 30.4 per cent to Rp 13.37 trillion. This condition reflects a trend among the public to maintain life insurance policies as part of long-term protection. “The increase in health claims shows that the public’s need for healthcare services remains high, and health insurance protection continues to play a very vital role,” said Wianto.