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Jakarta Post

Life insurers say premium income will contract this year

  • Riska Rahman

    Jakarta

Jakarta   /   Fri, October 2 2020   /  01:00 am
Hold tight: A patient and a member of Social Health Insurance Provider (BPJS) is pushed by her family member after undergoing a medical check-up at Bahteramas hospital in Kendari, Southeast Sulawesi. (Antara/Jojon)

The life insurance industry will see a contraction in premium income this year on the back of the COVID-19 crisis, despite people’s rising awareness on health, the Indonesian Life Insurance Association (AAJI) has stated. AAJI chairman Budi Tampubolon said on Sept. 25 that the association expected the industry's premium income to contract 2.5 percent year-on-year (yoy).  The life insurance industry’s premium income has contracted 2.5 percent yoy to Rp 88.02 trillion (US$5.9 billion) in the first half of the year from the same period last year. The decline in new premium income and renewed premiums contributed to the lower figure. “Everyone is now focused on surviving. The second quarter was better than the first quarter but if the third and fourth quarter are similar to the second quarter, we will still see contraction this year, but just not too d...