AAJI: Throughout 2021, The Insurance Industry Pays Claims Of IDR 159.43 Trillion

Illustration. (Photo: Doc. Antara)

JAKARTA - The Indonesian Life Insurance Association (AAJI) reported that during 2021 the insurance industry recorded a growth of 11.9 percent with total claims and benefits paid reaching IDR 159.43 trillion.

Meanwhile, based on the 2021 Performance Reports from 58 AAJI member companies, the life insurance industry managed to record revenues of IDR 241.17 trillion. This figure shows a positive trend, where total revenue for the same period in 2020 experienced a slowdown by 8.6 percent or IDR 215.44 trillion.

The chairman of the AAJI Management Board, Budi Tampubolon, explained that the performance of industrial income was in line with the government's efforts to restore the national economy by encouraging economic activity, as well as increasing public awareness regarding the importance of life insurance as a pre-emptive step in preventing risks from the ongoing pandemic.

"This is a very encouraging result, we believe that the industry's achievements that continue to show positive performance are driven by public confidence in life insurance protection," Budi said in a virtual presentation of the Insurance Industry Performance, Wednesday, March 9.

Furthermore, Budi explained that the life insurance industry in Indonesia recorded a total premium income of IDR 202.93 trillion or grew by 8.2 percent. The positive income performance was contributed by the increase in new business premiums which grew 12.1 percent to IDR 128.62 trillion, and advanced premiums rose 2 percent to IDR 74.31 trillion.

Meanwhile, based on distribution channels, bancassurance provided the largest contribution to premium income, which reached 48.1 percent with a growth of 5.3 percent. Meanwhile, premium income from agency channels contributed 29.0 percent, where there was a 9.7 percent slowdown.

Budi further explained, the life insurance industry has protected as many as 65.56 million Indonesian people in 2021. This figure grew by 2.9 percent compared to 2020, with a total sum insured of IDR 4.360.81 trillion with total claims, and the benefits paid by the life insurance industry totaled IDR 159.43 trillion.

"The AAJI noted that the total benefits for claims for death increased by 72.8 percent or IDR 21.14 trillion. Likewise, the benefits of health claims increased by 32.0 percent to IDR 13.04 trillion," he explained.