Public Enthusiastic About New Premiums, Yet Insurance Revenue Declines
The Indonesian Life Insurance Association (AAJI) has reported pressure on total industry revenue during the first quarter of 2026. Nevertheless, new business premiums recorded a 5% year-on-year growth, reaching Rp27.9 trillion. Alongside the increase in new premiums, the number of insured individuals also rose by 20.9% to 118.28 million people.
Despite these gains, total life insurance revenue as of March 202_6 contracted by 6% to Rp47.63 trillion, compared to Rp50.66 trillion during the same period last year. This revenue contraction was driven by declining performance in both premium income and investment returns; specifically, weighted premium income contracted by 4.5%, while investment returns recorded a loss of Rp1.6 trillion in the first half of this year.
AAJI Board Chairman Albertus Wiroyo stated that these figures demonstrate the life insurance industry’s ability to maintain a balance between business growth and fulfilling commitments to policyholders. “From January to March 2026, the life insurance industry booked a total overall revenue of Rp47.63 trillion. Simultaneously, the industry continued to honour its commitments through claim and benefit payments of Rp38.73 trillion to the public, representing a 1.5% year-on-year growth,” Albertus said during an AAJI press conference in Jakarta on Tuesday.
Regarding claims, AAJI Head of Literacy and Consumer Protection Wianto Chen explained that one component experiencing a significant increase was end-of-contract claims, which surged by 112.0% to Rp10.45 trillion. This indicates that more policyholders have reached the end of their coverage periods and are receiving benefits according to policy terms. Conversely, surrender claims decreased by 30.4% to Rp13.37 trillion, reflecting a trend where the public prefers to maintain life insurance policies as part of long-term protection.
Looking at other claim components, death benefit payments were recorded at Rp2.83 trillion, showing that protection against primary life risks remains a vital function of the life insurance industry. Meanwhile, health claims increased by 15.3% to Rp6.72 trillion, highlighting the high public demand for health 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 crucial role,” added Wianto.