AAJI Calls Life Insurance Claims Reach IDR 122.46 Trillion Until Semester III-2023

Insurance illustration (Photo: dock. unsplash)

JAKARTA - The Indonesian Life Insurance Association (AAJI) recorded that the total payment of claims and benefits of the life insurance industry from January to September 2023 reached IDR 122.46 trillion.

"The claims and benefits that have been paid by the life insurance industry throughout the January September 2023 period are IDR 122.46 trillion which has been distributed to 7.69 million people," said AAJI Chief of Operational of Excellent, IT & Digital (Customer Centricity) Chief Edy Tuhirman quoting Antara.

In general, claims from the life insurance industry decreased by 4.4 percent on an annual basis (year-on-year/yoy) compared to the same period last year which was recorded at IDR 128.09 trillion.

Although the cumulative achievement decreased, health insurance claims still showed high performance, which was 32.9 percent yoy to Rp15.24 trillion from Rp11.47 trillion in the last year period.

In detail, individual health claims were recorded at Rp9.72 trillion, up 33.9 percent yoy from Rp7.26 trillion. Meanwhile, the health claims for the collection grew 31.2 percent yoy to Rp5.52 trillion from Rp4.21 trillion.

Meanwhile, claims of death were recorded at IDR 8.04 trillion, down 9.7 percent yoy from IDR 8.91 trillion.

"For the first time the value of health claims is higher than the claim of death," said Edy.

Edy said the ratio of claim payments with premium income has now reached 122 percent. AAJI believes that this condition needs to be taken seriously so that the life insurance industry can consistently provide maximum protection to all Indonesian people.

Furthermore, payment of other claims such as contract termination claims, claim of death, claim of policy ransom, and claim of partial withdrawal (partial against) has decreased.

The contract's final claim fell 19.1 percent yoy to Rp13.72 trillion, the signing fell 6.5 percent yoy to Rp68.83 trillion, and the second partial fell 5 percent to Rp12.61 trillion.

"The decrease in partial and rendering claims is a progress in the life insurance industry, considering the goal of life insurance products is long-term protection for future finance," said Edy.