Life Insurance Industry Revenue Reaches IDR 60.71 Trillion In The First Quarter Of 2024

Photo: Doc. AAJI

JAKARTA - The Indonesian Life Insurance Association (AAJI) recorded life insurance industry revenue during the first quarter of 2024 of IDR 60.71 trillion, an increase of 11.7 percent quarter-to-quarter (qtq) based on unaudited financial reports from 56 life insurance companies.

The total income of the life insurance industry in the first quarter of 2024 was recorded to grow positively. "In terms of (quarter-to-quarter), the total income of the life insurance industry rose 11.7 percent to Rp60.7 trillion," said Chairman of the AAJI Management Board Budi Tampubolon at the AAJI House in Jakarta, quoted from Antara, Wednesday, May 29.

One of the supporting components of life insurance industry revenue is investment revenue which contributes positively to growth of 99.8 percent qtq to Rp12.32 trillion.

Furthermore, the increase in total life insurance income was also influenced by the growth of premium income which rose 0.9 percent to Rp46 trillion compared to the first quarter of 2023.

Based on the product, the trend of increasing premium income from traditional life insurance products was recorded at IDR 26.77 trillion, an increase of 18.4 percent qtq.

For life insurance products for link units or Insurance Products Related to Investment (PAYDI), it was recorded at IDR 19.22 trillion or a contraction of 16.4 percent qtq.

"We believe that with the increasingly perfect adjustment of the life insurance unit link product carried out by life insurance companies for AAJI members, it will further increase public interest in these products, especially among people who need investment features," he said.

Regarding the total premium income seen from payment methods, 59.2 percent or Rp27.23 trillion was obtained through regular premium payments, an increase of 4.5 percent qtq. The single premium payment was recorded at 40.8 percent or Rp18.77 trillion, down 4 percent qtq.

According to Budi, this figure illustrates the sustainability of the life insurance business through periodic premium payments, and indicates that the Indonesian people understand the function of life insurance for long-term protection.

Judging from the type of business unit, the total premium income from conventional business units was under pressure by 0.4 percent qtq with a contribution of 87.4 percent or Rp40.21 trillion from the total premium income.

Meanwhile, the total revenue from Islamic business units increased by 10.8 percent qtq with a contribution of 12.6 percent or Rp5.79 trillion.

In terms of policy ownership, 80.2 percent or Rp36.9 trillion, the total premium income of the life insurance industry comes from individual policies, down 1.4 percent qtq. As for 19.8 percent or Rp9.10 trillion comes from group policy, an increase of 11.3 percent qtq.

In addition, the life insurance industry also recorded a premium based on a new type of business of IDR 26.65 trillion with a contribution of 57.7 percent to the total premium income, a decrease of 0.8 percent qtq.

Based on the advanced premium type, it was recorded that it had increased 3.3 percent qtq to Rp19.35 trillion with a contribution of 42.1 percent.

When viewed from the distribution channel, the highest premium income comes from bancassurance of IDR 19.09 trillion, an increase of 0.5 percent qtq, an agency of IDR 14.16 trillion or a decrease of 2.6 percent qtq, and an alternative distribution channel of IDR 12.75 trillion or a decrease of 5.6 percent qtq.

"This growth (premi income) is certainly a strength for the life insurance industry to be allowed to look at 2024 even more positively," he said.