Down 12.3 Percent, Life Insurance Industry Revenue Is IDR 105.4 Trillion In Six Months This Year

JAKARTA - The Indonesian Life Insurance Association (AAJI) noted that the income from the life insurance industry decreased by 12.3 percent year-on-year (YoY). The value is IDR 105.4 trillion in the first semester of 2022 from IDR 120.2 trillion in the first semester of 2021.

"The decline tends to be due to a decrease in premium income which contributes 90.7 percent to total revenue", said AAJI Board Chairman Budi Tampubolon in a press conference reported by Antara, Tuesday, September 6.

He explained that the total premium income in the first half of this year was recorded at IDR 95.7 trillion, down 8.9 percent (YoY) from IDR 105.1 trillion in the first semester of 2021.

Based on its products, the life insurance of the link unit still dominates the total income of the life insurance industry with a contribution of 59.3 percent, while another 40.7 percent comes from traditional insurance products.

Traditional products and unit links as a whole decreased by 4.6 percent (YoY) each from IDR 40.9 trillion to IDR 39 trillion and 11.7 percent (YoY) from IDR 64.2 trillion to IDR 56.7 trillion.

Nevertheless, premium income for health insurance products increased 15.9 percent (YoY) from IDR 7.4 trillion to IDR 8.6 trillion.

Meanwhile, based on his business, Budi said that the new business premium contributed 61.8 percent to the total premium income, while another 38.2 percent came from the advanced business premium.

"The revenue of new and advanced business premiums also recorded a decline, respectively by 13.3 percent (YoY) from IDR 68.1 trillion to IDR 59.1 trillion and 0.9 percent (YoY) from IDR 36.9 trillion to IDR 36.6 trillion", he said.

Likewise, based on the distribution channel, he continued, all channels recorded decreases, namely bancassurance, agency, and alternatives, each down 7 percent (YoY), 9.1 percent (YoY), and 10.9 percent (YoY).

Based on its business unit, conventional business unit premium income fell 11 percent (YoY) from IDR 95.3 trillion to IDR 84.8 trillion, but sharia business units were able to grow 11.5 percent (YoY) from IDR 9.7 trillion to IDR 10.9 trillion.

Individual insurance premium income fell 11.4 percent (YoY) from IDR 93.13 trillion to IDR 82.51 trillion, while collection insurance grew 10.5 percent (YoY) from IDR 11.92 trillion to IDR 13.17 trillion.