First Quarter 2022, Life Insurance Industry Pays Claims Of IDR 43.35 Trillion

AAJI's Head of Marketing and Communication, Wiroyo Karsono. (Photo: ANTARA)

JAKARTA - The life insurance industry has paid claims and benefits with a total of IDR 43.35 trillion to more than 5.3 million beneficiaries in the first quarter of 2022.

"This is proof of the strength of the life insurance industry to always be committed to the obligations that must be paid," said Head of Marketing and Communication of the Indonesian Life Insurance Association (AAJI) Wiroyo Karsono as quoted by Antara, Friday, June 10.

The number of claims paid in the first quarter of 2022 decreased slightly when compared to the first quarter of 2021 which reached IDR 51.55 trillion or decreased by 15.9 percent.

However, when compared to the first quarter of 2020, the number of claims and benefits paid increased from the previous Rp40.96 trillion

Wiroyo explained, the types of claims were divided into two, namely surrender claims (ransom claims) which fell 42.5 percent in the first quarter of 2022 to Rp. 15.99 trillion.

Then claims for partial withdrawals which also fell by 31.4 percent or amounting to Rp.4.25 trillion.

"This is good, because it indicates increasing public awareness of the long-term protection of life insurance products and that this condition should be maintained," he said.

In addition, the life insurance industry has also paid health claims of Rp. 3.3 trillion in the first quarter of 2022, an increase of 28.3 percent.

Wiroyo said that the payment of health claims increased in line with the soaring cases of the Omicron variant of COVID-19 in early 2022.

Overall, since March 2022, specifically for claims related to COVID-19, the life insurance industry has paid more than IDR 9 trillion.

Meanwhile, in the first quarter of 2022, total policies reached 20.87 million, an increase of 17.4 percent or 3.09 million policies compared to the same period in 2021. Of the total policies, the life insurance industry has protected 75.45 million Indonesians.

The total value of the sum insured reached Rp4,245.01 trillion, or a slowdown of 4 percent, which indicates that public interest in life insurance has increased but people's purchasing power has decreased.

"There is a significant increase in the insured but a decrease in income, this is an indication that the interest of the lower economic community is increasing," he said.

Wiroyo said that the performance of unit link which contributed dominantly was 59.3 percent with a slowdown of 18.9 in the first quarter of 2022.

The reason is the COVID-19 pandemic which puts pressure on people's purchasing power, so that the total premium income of the life insurance industry decreases on average.

As for policyholders for unit-linked insurance products, the number is 6.12 million or contributing 29.31 percent of the total life insurance industry policies.

So that the number of Indonesian people protected by unit link reaches 6.38 million.