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Life insurance industry posts 12% sales growth in 2021
The Indonesian life insurance industry will aim high in 2022, banking on the significant improvement last year and stronger economic recovery.
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The office of the Indonesian Life Insurance Association (AAJI) in Jakarta is shown in this undated photo. (Courtesy of AAJI)
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ndonesia's life insurance industry saw its revenue grow by 11.9 percent annually in 2021 as the country's economy recovered, despite the challenges of a second COVID-19 wave.
The Indonesian Life Insurance Association (AAJI) said on Wednesday that revenue reached Rp 241.17 trillion (US$16.85 billion) last year, exceeding even the pre-pandemic level of Rp 235.73 trillion in 2019. Premium revenue – the biggest contributor to overall revenue – grew by 8.2 percent annually to Rp 202.93 trillion, also exceeding the 2019 figure.
“Because 2021 was good, the industry will be more aggressive in 2022,” AAJI chairman Budi Tampubolon told reporters during an online press conference on Wednesday.
Read also: Life insurance industry beats pre-pandemic revenue in H1
In 2021, Indonesia’s gross domestic product (GDP) growth rebounded to 3.69 percent annually, reversing a 2.07 percent contraction a year earlier. Improvements in health care, public mobility, international trade and fiscal stimulus spurred the recovery.
AAJI data show that revenue from unit-linked insurance grew by 6.4 percent last year to Rp 127.7 trillion, whereas traditional insurance – without investment facilities – grew by 11.4 percent to Rp 75.23 trillion. Unit-linked products remained the top contributor to premium revenue at 62.9 percent of the total.
Bancassurance – insurance sold through banks – remained the highest contributor to the industry’s premium revenue, amounting to almost half of the total. The overall revenue obtained from this channel grew by 5.3 percent to Rp 97.63 trillion, while revenue from agencies – its second-largest channel – dropped by 9.7 percent to Rp 58.8 trillion.
