Consistently Increasing, Life Insurance Industry Provides Protection For 87 Million Borne

JAKARTA - The Indonesian Life Insurance Association (AAJI) reported the performance of 56 Life Insurance Companies in the January-March 2023 period. The growth in the insured amount is still a green record for the life insurance industry. As of March 31, 2023, the life insurance industry recorded a total of 87.54 million people.

Chairman of the AAJI Management Board, Budi Tampubolon, said that the increase in the amount of the insured that was continuously recorded was a very good result in the midst of industrial efforts to expand life insurance protection for the Indonesian people. This result becomes capital for industry players to further provide services and choices of various products to meet the needs of the community.

Until the end of the first quarter of 2023, the life insurance industry has protected 29.74 million individual-borne and 57.80 million accountable. When compared to the achievement in the first quarter of 2022, overall there are more than 12 million insured additions, or an increase of 16.6 percent. Of course, this addition is not a small number. This mandate must be maintained and accounted for by the industry through comprehensive services for the insured and policyholders," said Budi.

Budi added that the increase in the insured amount is also in line with the growth in the amount of coverage money. The total coverage of the life insurance industry reached IDR 5,002.29 trillion, an increase of 17.3 percent when compared to the results of the achievement in the first quarter of 2022. This indicates that public understanding of the function of life insurance protection is growing.

Regarding total revenue, in the first quarter of 2023 the life insurance industry managed to record a total revenue of IDR 54.36 trillion. This result is still recorded to decrease when compared to the same period in 2022.

Sebagai diketahui bahwa pada 14 Maret 2023 SEOJK PAYDI telah berlaku secara penuh. Sedikit banyak hal ini cukup mempengaruhi capaian pendapatan industri asuransi jiwa pada kuartal I 2023. Banyak anggota AAJI yang menahan penjualan dan melakukan adaptasi terhadap perubahan tersebut. Harapannya seiring dengan berjalannya waktu, adaptasi yang dilakukan industri akan memperkuat perlindungan kepada pemegang posikus dan memberikan hasil yang positif bagi pertumbuhan kinerja asuran jiwa, tambah Budi

Strengthen Commitment

The life insurance industry is strengthening its commitment to provide protection to the public through claim payments. The total claim of IDR 45.56 trillion has been paid during the January March 2023 period. This number increased by 5.1 percent when compared to claim payments in the January-March 2022 period.

Head of the AAJI Marketing Personnel Distribution and Inclusion Channel, Elin Waty, said that the ever-increasing payment of claims proves that this industry is a liquid industry and is able to fulfill its obligations to policyholders or beneficiaries.

A total of 3.82 million policyholders and beneficiaries have benefited from life insurance. We in the industry are trying to provide maximum service to customers by paying claims in accordance with applicable policy provisions," explained Elin.

Elin also added that since mid-2022 health claims have become one of the components of rapidly increasing claims. It was recorded that in the first quarter of 2023, health claims had increased by 38.6 percent. Inflation of medical costs which is quite high is an indication of the high growth.

"After the COVID-19 pandemic, the cost of health care is currently increasing sharply. Therefore, we advise all policyholders to periodically review the protection they have so that it remains as needed," added Elin.