Life Insurance Industry Revenue Grows 9.3 Per Cent in 2025
Jakarta — The Chairman of the Board of Trustees of the Indonesian Life Insurance Association (AAJI) Albertus Wiroyo stated that the government’s commitment to protecting policyholders is reflected in the industry’s stable performance throughout 2025 amid economic dynamics.
“Total life insurance industry revenue throughout 2025 reached Rp238.71 trillion or grew approximately 9.3 per cent year-on-year. This growth was primarily driven by a significant increase in investment returns,” Albertus said during a press conference in Jakarta on Saturday (14 March 2026).
Although total premium income declined by 1.8 per cent annually, this condition reflects a change in public preference in selecting premium payment patterns. New business premiums paid regularly increased by 7.8 per cent. This demonstrates that public interest in life insurance protection remains intact. This condition was also supported by an increase in the total insured population of the life insurance industry, which rose 8.6 per cent year-on-year to 168.03 million people.
The Head of Training and Human Resource Development (Centre of Excellence) at AAJI, Handojo Gunawan Kusuma, also stated that the life insurance industry continued to carry out its primary function of providing protection through claims and benefits payments to policyholders.
Throughout 2025, the life insurance industry paid total claims and benefits of Rp146.73 trillion to approximately 9.59 million benefit recipients.
The claims value declined 7.8 per cent compared to 2024. This decline was primarily influenced by a reduction in surrender claims of approximately 19 per cent. This condition demonstrates policyholders’ tendency to maintain their policies as a form of long-term protection.
Looking at the health insurance sector, claims payment for this product increased 9.1 per cent with a total value of Rp26.74 trillion for both individual and group products.
“Health insurance became one of the focuses of life insurance industry transformation in 2026. Through the implementation of Financial Services Authority Regulation (POJK) Number 36 of 2025, it is expected that health claims management can be better controlled whilst enhancing protection for policyholders,” said Handojo.
The Head of Marketing and Communications at AAJI, Harsya Wardhana Prasetyo, added that the life insurance industry continued to strengthen its financial position through prudent and diversified investment management.
In total, life insurance industry investment in 2025 reached Rp590.54 trillion, an increase compared to the previous year of Rp541.55 trillion.
The diversification of life insurance industry investment is reflected in the spread of the portfolio across various instruments. The largest investment placement was in State Securities (SBN) of Rp248.25 trillion or approximately 42 per cent of total investment.
In addition, investments in listed shares were recorded at 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 and improved performance of the domestic stock market in the fourth quarter of 2025 were assessed as providing a positive contribution to the investment portfolio of life insurance companies. The majority of investment was placed in long-term instruments such as SBN, shares, and mutual funds.
“Given the long-term investment characteristics possessed by the life insurance industry, this condition also supported the strengthening of investment performance whilst maintaining the companies’ ability to meet their obligations to policyholders,” he said.