Life Insurance Premium Income Grows 8.2 Per Cent in First Half of 2026
The Indonesian Life Insurance Association (AAJI) recorded that total premium income for the life insurance industry nearly reached Rp 95 trillion throughout January–June 2026. This figure represents a year-on-year growth of 8.2 per cent.
“In the first semester of 2026, premium income reached Rp 94.75 trillion, growing by 8.2 per cent yoy. This indicates that public demand for insurance premiums remains steady,” said the Chairman of the AAJI Board of Directors, Albertus Wiroyo, during a press conference on Monday (30/8/2026).
The life insurance business performance report for this period includes unaudited financial data from 56 life insurance companies belonging to AAJI. Overall, Albertus noted that the life insurance industry showed positive growth in the first half of 2026, evidenced not only by the increase in premium income but also by the number of policies and insured individuals.
“In terms of the number of policies, the life insurance industry also recorded positive growth of 7.7 per cent, reaching 22.44 million policies. This also demonstrates the expanding ownership of life insurance protection within our society,” he said.
“Furthermore, the number of insured individuals grew by 24.8 per cent to 153.58 million people,” he continued.
Meanwhile, the total amount of claim payments and benefits in the life insurance industry during the first half of 2026 was recorded at Rp 75.57 trillion, an increase of 4.3 per cent year-on-year.
However, despite the positive growth in premium income, AAJI noted that total industry income throughout January–June 2026 experienced a decline compared to the same period in the previous year.
“Total industry income in the first semester of 2026 was recorded at Rp 96.39 trillion, which is lower by 11.2 per cent yoy, compared to Rp 108.51 trillion last year,” he revealed.
Albertus explained that the decline in industry income occurred within the context of pressure on investment returns. In the first half of this year, he noted that many investment instruments experienced shrinkage, including stocks, bonds, and Government Securities (SBN).
Analysing these data, he emphasised that despite the dynamics in total industry income, AAJI views the positive growth in premium data as an indication that the need for insurance protection remains strong.
Furthermore, Albertus explained that by type, both traditional life insurance products and unit-linked products (investment-linked insurance products/PAYDI) both experienced growth in the first half of 2026. Traditional products increased by 6.9 per cent yoy to Rp 59.03 trillion, while unit-linked premiums increased by 10.3 per cent to Rp 35.73 trillion.
“This composition shows that public needs are becoming more diverse. Some prioritise protection, while others still require products that combine protection with investment elements. For the industry, this diversity of product choices must be balanced with education and transparency so that the public can choose products according to their specific needs and financial capabilities,” he said.