Unveiling the New Direction of Insurance and Unit Link Development in Indonesia
Jakarta, CNBC Indonesia - The life insurance industry is showing stable growth with increasingly broad protection coverage for the people of Indonesia. The OJK also projects positive performance in the financial sector, including assets in the insurance industry, and is expected to grow by 5-7%.
Until September 2025, total industry revenue increased by 3.2% to IDR 174.21 trillion. However, premium revenue still experienced a slight correction of 1.1% to IDR 133.22 trillion, influenced by a decline in single premiums amid the recovery of people’s purchasing power.
Not only purchasing power, the decline was also caused by a decrease in public trust in investment-linked insurance products (PAYDI) or unit links in Indonesia.
Unit link premiums contributed 63% of total life insurance premiums in 2021. However, since the issuance of regulations that strictly regulate unit links, the contribution of unit links at the end of 2024 shrank to 28% of total premiums. In fact, as of April 2025, its portion has shrunk again to only 22.1%.
Countries with the most stable unit link markets have a similar approach, namely strong and consistent consumer protection. Unit links are categorized as complex products, their sales are strictly monitored, and the complaint mechanism works effectively.
Therefore, breakthroughs are needed to create a good and trustworthy insurance climate in society. This way, people will no longer see insurance as an option, but as a necessity.
With the various regulations in place, Indonesia is also moving in the same direction. In addition to improvements, Indonesia is also faced with a major challenge, namely restoring public trust after the emergence of various policy dispute cases that have formed a negative perception of the insurance industry, especially unit link products.
To explore in more depth the direction of the insurance industry, CNBC Indonesia is holding an Insurance Forum with the theme “Optimizing Insurance Protection and the New Direction of Unit Link Development in Indonesia”. This forum will be held on Thursday, February 26 at 12.00-15.00 WIB.
The Insurance Forum presents a number of speakers from various stakeholders. Including the Financial Services Authority, the Indonesian Life Insurance Association (AAJI), the Indonesian Insurance Council (DAI), and players in the insurance industry.
The speakers will discuss the evaluation of life insurance performance, strengthening governance and consumer protection, concrete steps and synergy strategies in strengthening the insurance industry in Indonesia, to facing the challenges of an ever-evolving global landscape.
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