Indonesia credit claims jump 17% in Q1 2026

The loss ratio climbed above 100% during January to March.

Indonesia’s general insurance sector is facing growing pressure in its credit insurance business as rising claim costs outpace premium growth, as reported by the Jakarta Globe.

According to data from the Indonesian General Insurance Association (AAUI), the credit insurance loss ratio climbed to 102% in the first quarter of 2026.

This indicates that insurers paid out more in claims than they collected in premiums during the January-to-March period. Total credit insurance claims rose by 17% compared to the previous year, reaching $235.2m (IDR 4.2t).

By contrast, premium income grew by only 3.2% to $229.6m (IDR 4.1t) over the same period.

The increase in claims has occurred despite relatively stable growth in the wider Indonesian economy, suggesting that macroeconomic gains have not yet fully strengthened household purchasing power or overall business conditions. Higher interest rates also continue to pose a risk to loan quality and sector profitability.

($1.00 = IDR17,977.00)