AAJI Records Insurance Claim Ratio Reaches IDR 162.75 Trillion

Insurance (Photo: dock. unpslash)

JAKARTA The Indonesian Life Insurance Association (AAJI) reported that throughout 2023 the life insurance industry has paid claims of IDR 162.75 trillion. This number recorded a decrease of 6.8 percent compared to claim payments in 2022.

Head of the AAJI Literacy and Consumer Protection Division Freddy Thamrin said that until the end of 2023, his party had paid claims of Rp162.75 trillion to more than 10 million beneficiaries.

"We note a downward trend in payments on several types of claims, such as contract termination claims, death claims, policy ransom claims and partial withdrawal claims," Freddy said in his statement, Tuesday, February 27.

However, Freddy said, health insurance claims actually increased throughout 2023. In early January to March 2023 the total health insurance claims amounted to Rp4.6 trillion and until December 2023 this value continued to soar to reach Rp20.83 trillion.

Freddy said that currently the ratio of health insurance claims to premium income for these products has reached 138 percent. There is a fairly large margin between claim payments and premium income.

"We in the life insurance industry maintain our commitment to provide maximum protection to the community through payment of claims that are in accordance with the policy agreement," said Freddy.