Indonesia life claims fall 7.9% as surrenders decline

The industry paid $6.2b to 6.92 million beneficiaries during the first nine months of 2025.

Indonesia's life insurance industry paid $6.2b (Rp110.44t) in claims and benefits to 6.92 million beneficiaries in the first nine months of 2025.

The total value of claims and benefits fell 7.9% year-on-year (YoY), mainly due to an 18.7% drop in surrender claims, according to the Indonesian Life Insurance Association (AAJI).

AAJI head of Distribution Channel and Marketing Force Inclusion Albertus Wiroyo said the decline suggests policyholders are holding on to their insurance policies instead of cashing them out to meet short-term financial needs.

Health insurance claims also declined during the period. Payments fell 7.5% YoY to $1.1b (Rp19.35t), covering 3.19m people. 

The average health claim per beneficiary dropped from $392 (Rp7.0m) to $340 (Rp6.07m).

Wiroyo said the improvement in health claims provides an opportunity for insurers to strengthen governance of health benefits and support the long-term sustainability of services.

Meanwhile, the industry's financial position remained stable. AAJI Head of Operational Excellence Yurivanno Gani said total industry assets rose 3.2% YoY to $36.3b (Rp648.58t) as of September 2025.

Investment assets accounted for 88.1% of total assets, reaching $32.0b (Rp571.40t). Yurivanno said stable investment assets continue to support the industry's ability to provide long-term protection for policyholders.

Investment income increased 25.5% YoY to $1.9b (Rp33.81t), supported by stronger capital market performance.

Government securities remained the industry's largest investment, rising 15.2% to $13.3b (Rp236.88t) and accounting for 41.5% of total investments. 

Equity investments fell 14% YoY to $7.0b (Rp124.57t), representing 21.8% of the portfolio. 

Mutual fund investments declined 2.4% YoY to $4.0b (Rp70.60t), whilst corporate sukuk increased 16% to $3.0b (Rp53.92t). Time deposits fell 4.1% YoY to $1.9b (Rp33.17t).

Yurivanno said the industry's focus on traditional insurance products continues to support investments in lower-risk, long-term assets, helping insurers meet future benefit payments despite changing economic conditions.

($1.00 = Rp17,988.01)