Life Insurance Income Drops To IDR 223 T, What’s Up?

The Indonesian Life Insurance Association (AAJI) notes that the life insurance industry’s revenue throughout 2022 is still under pressure. Overall, the life insurance industry’s total revenue is IDR 223 trillion, down 7.5% compared to the same period in 2021.

Chairman of the AAJI Management Board, Budi Tampubolon, said that the income of the life insurance industry is largely influenced by product shifting and premium payment methods by the public. In general, the life insurance industry’s premium income recorded a decline, including new business premium income.

Then the total claims and benefits paid by the life insurance industry during the period from January to December 2022 were recorded at IDR 174.28 trillion.

He said the life insurance industry is a liquid industry. This is evidenced by the fact that more than 12 million customers have received their rights from the industry for the benefits of their life insurance policies.

“Based on the type of claims paid, individual health claims are one of the components with a very high increase, where year on year it rose 46.1%. This is evidence that amidst the issue of inflation in the healthcare industry, this industry consistently supports the program. The National Health Insurance (JKN) is run by the government,” he said in a press conference at Rumah AAJI, Central Jakarta, Tuesday (7/3/2023).

Based on data up to December 2022, the life insurance industry recorded total assets of IDR 611.22 trillion, an increase of 1.5% compared to December 2021. As much as 87.9% of total assets are total investments which until that period recorded a value of IDR 537.45.

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On the same occasion, AAJI Head of Finance, Capital, Investment and Tax, Simon Imanto stated that the total investment in the life insurance industry was recorded to have increased by 1.3% compared to December 2021.

In general, investment placements in the life insurance industry are still dominated by 29.5% of the total investment or the equivalent of IDR 158.51 trillion. Even though it is still dominated by investment in stock instruments, when viewed from the growth of the life insurance industry at this time it is more focused on placing long-term investments such as Government Securities (SBN) instruments.

“As of December 2022, the total investment placement in SBN instruments was recorded at IDR 143.57 trillion or contributing 26.7% of the total investment. In addition, the continued increase in investment placement in SBN instruments is an industry commitment to always contribute to the national economy. through financial support for the government’s long-term development,” concluded Simon.

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