Life insurance revenue in Indonesia reached IDR219.70tn ($14bn) in 2023, dipping by 2% compared to IDR224.09tn in 2022, according to the Indonesian Life Insurance Association (AAJI).
AAJI chairman Budi Tampubolon said, “The general decrease in total revenue was due to a fall in the premium income component which was recorded at negative 7.1%.”
Life insurance premium income was recorded at IDR177.66tn in 2023. Other components of total revenue, namely, investment returns, recorded a positive figure of IDR32.03tn in 2023, representing a jump of 46.2% compared to 2022, reported Antara News Agency quoting data from AAJI.
“Improving the investment climate and appropriate investment placements by life insurance companies are the main drivers for the growth in investment returns,” said Mr Budi.
An analysis of total premium income by product indicates that the decline in premium income in 2023 was mainly due to slower sales of unit-linked life insurance products. On the whole, unit-linked life plans still showed growth and raked in premiums of IDR85.33tn in 2023.
In 2023, based on products marketed, total life insurance premium income was dominated by traditional life insurance products with a contribution of 52% to total premium income, said Mr Budi.
Premium income from traditional life insurance products jumped by 14.1% over 2022 to IDR92.33tn in 2023.
“We are sure, with the increasingly perfect adjustments to unit-linked insurance products that have been carried out by AAJI member life insurance companies, public interest in these products will also increase, especially among people who need both protection and investment features,” Mr Budi said.