Growing 2.6 Percent, Premium Income For Life Insurance Industry Is IDR 88.49 Trillion In Semester I 2024

Chairman of the Board of Management of the Indonesian Life Insurance Association (AAJI) Budi Tampubolon (left). (Photo: Doc. ANTARA)

JAKARTA - The Indonesian Life Insurance Association (AAJI) reported that the national life insurance industry's total premium income grew 2.6 percent year on year (yoy) in the first semester of this year to IDR 88.49 trillion.

"From the beginning of the year to June 2024, we saw a positive signal of the growth of the life insurance industry. This is our capital strength to further strengthen business strategies in the rest of this year," said Chairman of the Board of Management of the Indonesian Life Insurance Association (AAJI) Budi Tampubolon as reported by ANTARA, Thursday, August 29.

Meanwhile, based on the type of product, he said, premium income from traditional life insurance products was recorded at IDR 51.81 trillion, an increase of 18.6 percent yoy.

Meanwhile, premium income from the life insurance unit link product or also known as insurance products associated with investment (PAYDI) was recorded at IDR 36.68 trillion, down 13.8 percent yoy.

Meanwhile, when viewed from the payment method, Budi said, the life insurance industry received IDR 59.9 trillion through regular premium payments, while the remaining IDR 35.51 trillion was a single premium income.

Premium revenue through regular payments was recorded to have increased by 5.2 percent yoy, while premium income with single payments decreased by one percent yoy.

This periodic increase in premium income illustrates the sustainability of the life insurance business. This is also an indication that the Indonesian people are increasingly understanding the main function of life insurance as a long-term protection," he said.

Based on the business unit, the premium income of conventional and sharia life insurance actors has increased, namely 1.9 percent yoy and 7.6 percent yoy, respectively.

The number of conventional life insurance premium income reached IDR 77.41 trillion in the first semester of this year, while the premium income for sharia life insurance was recorded at IDR 11.08 trillion.

"The growth in total premium income in the first semester of 2024 is driven by good performance in every distribution channel in the life insurance industry," he said.

Budi said that according to the distribution channel, the highest premium income came from the "bancassurance" distribution channel which recorded premium income of IDR 36.92 trillion, or an increase of 1.3 percent yoy.

Meanwhile, each of the agency distribution channels and alternative distribution channels experienced an increase in revenue by 3.4 percent yoy to Rp27.94 trillion and 3.8 percent yoy to Rp23.64 trillion.

Not only premium income, he said that the increase also occurred in the total assets of the life insurance industry, which amounted to 0.3 percent yoy to Rp616.91 trillion.

However, the same condition did not occur in the investment returns of the life insurance industry. Investment returns decreased by 26.4 percent yoy to IDR 12.32 trillion.

This also had an impact on the total income of life insurance industry players in the first semester of 2024, which fell 1.9 percent yoy to Rp105.25 trillion.

This decline is certainly inseparable from the influence of economic conditions, especially when investment flows in the capital market are depressed. This can be seen from the movement of the combined stock price index (JCI) which has fallen since the beginning of the year," added Budi.