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View all search resultsLife insurers record higher revenue in first half as claims decline
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The office of the Indonesian Life Insurance Association (AAJI) in Jakarta is shown in this undated photo. (Courtesy of AAJI)
I
ndonesia’s life insurance industry posted higher revenue in this year’s first half as premium collection increased while claims declined.
Total life insurance revenue in the first half amounted to Rp 109 trillion (US$6.7 billion), up 3.6 percent year-on-year (yoy), according to data unveiled in a press conference held by the Indonesian Life Insurance Association (AAJI) on Friday.
“This result emphasized the relevance of life insurance as an important pillar in families’ financial planning, even amid limited room for people’s consumer spending,” said AAJI executive Budi Tampubolon.
He detailed that renewal premiums revenue, which is collected from policyholders who wish to extend an existing policy, has gone up by 6.1 percent yoy to just shy of Rp 40 trillion.
The number of policyholders has also risen by 8.8 percent when compared to last year’s first half and now totals 123.7 million.
“This positive record shows that people’s trust in life insurance has been maintained. [...] The increase in premium renewal and the increase in policyholders emphasize public awareness of the importance of insurance as a long-term protection instrument,” Budi said.
Claim settlements in the first half declined by 6.7 percent yoy to Rp 72.5 trillion for 5.01 million policyholders, which Budi attributed mainly to partial withdrawal claims.
