The Life Insurance Industry Grows in 2024, AAJI Optimistic That Public Trust Will Strengthen Further in 2025

Life insurance (Doc. Ist)

Printable.biz.id - The Life Insurance Industry in Indonesia Shows Positive Growth Throughout 2024

According to a report from the Indonesian Life Insurance Association (AAJI), the industry's premium revenue reached IDR 185.39 trillion, an increase of 4.3 percent compared to the previous year. This growth was driven by new business premiums amounting to IDR 108.32 trillion and renewal premiums totaling IDR 77.07 trillion.

AAJI Chairman Budi Tampubolon explained that traditional insurance products experienced significant growth of 18.7 percent, with total premiums reaching IDR 110.36 trillion.

“This increase indicates that a larger segment of society has successfully obtained insurance protection with the assistance of companies or organizations. This reflects the industry's role in providing broader financial protection solutions for the public,” Budi stated.

These products contributed 59.5 percent of total premiums, while the remaining portion came from unit-linked insurance. Not only conventional insurance, but sharia insurance also recorded a 10.4 percent growth, reaching IDR 22.61 trillion.

In terms of coverage, the number of insured individuals in the life insurance industry surged by 80.1 percent to 154.64 million people. This surge was primarily driven by the growth of group insurance participants, which increased by 107.7 percent to 133.05 million people.

This indicates that more people are obtaining financial protection through the companies or organizations where they work.

AAJI also recorded that the life insurance industry paid claims amounting to IDR 160.07 trillion to 9.08 million beneficiaries throughout 2024. These claims covered various categories, including death claims of IDR 11.29 trillion, contract maturity claims of IDR 18.30 trillion, surrender claims of IDR 77.15 trillion, partial withdrawal claims of IDR 19.87 trillion, and health claims of IDR 24.18 trillion.

According to AAJI's Head of Product, Risk Management, and Good Corporate Governance (GCG), Fauzi Arfan, these figures demonstrate that life insurance remains a key pillar in maintaining the economic resilience of Indonesian families.

“These numbers show that life insurance continues to be a primary pillar in supporting Indonesian families' economic stability. Whether through life benefits, contract maturity benefits, or flexible fund access, the industry ensures that policyholders receive optimal financial protection,” said Fauzi.

AAJI is optimistic that the life insurance industry will continue to grow in 2025, with various adaptation strategies to new regulations and product innovation. Industry players are now preparing for the implementation of Financial Accounting Standards Statement (PSAK) 117 in 2025 and capital regulations set to be enforced in 2026. These regulations aim to enhance transparency and industry sustainability.

Additionally, life insurance companies have begun implementing Financial Services Authority Regulations (POJK) related to health insurance and the Coordination of Benefit (CoB) mechanism. This initiative is expected to boost customer confidence while strengthening the industry’s sustainable growth.

AAJI’s optimism for the life insurance industry is also supported by the 2024 financial report, which shows stable performance.

According to AAJI’s Head of Agency Department, Wianto Chen, the total assets of the life insurance industry reached IDR 616.75 trillion, an increase of 0.7 percent compared to the previous year. Meanwhile, the industry’s total investment reached IDR 541.40 trillion, growing by 0.2 percent.

One of the key factors driving this investment growth is the increase in investment in Government Securities (SBN), which rose by 11.9 percent to IDR 205.03 trillion. This investment contributed 37.9 percent of the total life insurance industry investment. Additionally, stocks and mutual funds were also major investment instruments, contributing 24.7 percent and 12.9 percent, respectively.

According to Wianto, the life insurance industry continues to play a role in the national economy, particularly through investments in SBN, which help maintain industry stability while contributing to national development.

With these positive achievements, AAJI is confident that the life insurance industry will gain even greater trust from the public in the coming years.