Indonesia’s Life Insurers Cover 168 Million People

By International Desk: Indonesia’s life insurance industry showed solid growth in 2025, with the total number of people covered by policies reaching 168.03 million. This represents an increase of 8.6 percent compared to the previous year.

According to data from the Indonesian Life Insurance Association (AAJI), which covers results from 57 life insurance companies, the sector recorded total industry revenue of about $13.6 billion (Rp238.7 trillion). This was a 9.3 percent rise year-on-year, helped by strong investment returns and the larger number of insured individuals.

While overall premium income dipped slightly by 1.8 percent, AAJI officials explained that this reflected a shift toward more regular premium payment plans rather than one-time lump sums. New business premiums paid on a regular basis actually grew by 7.8 percent during the year.

On the claims side, the industry paid out a total of $8.4 billion (Rp146.7 trillion) in claims and benefits to around 9.59 million beneficiaries.

Overall claims fell by 7.8 percent compared to 2024, largely because policy surrenders dropped by 19 percent. This suggests that more policyholders are choosing to keep their coverage for the long term instead of cashing out early.

Health insurance claims, however, moved in the opposite direction. They rose by 9.1 percent to $1.5 billion (Rp26.7 trillion) across both individual and group policies. In response, the AAJI said it will place a strong focus on better managing health insurance costs in 2026, especially as new regulatory guidelines come into effect.

The industry’s investment portfolio also expanded, growing to $33.7 billion (Rp590.5 trillion) from $30.9 billion the year before. Government securities made up the biggest share at roughly 42 percent, or about $14.2 billion (Rp248.3 trillion). The rest was spread across shares, mutual funds, corporate sukuk, and bank deposits.

The association is preparing for important regulatory changes due by the end of 2026. These include stricter capital requirements and the mandatory separation of sharia business units. At the same time, AAJI is introducing new training and certification programs to improve standards for marketing and insurance agents across the sector.