How did Indonesia’s life insurance market perform in the first half of 2025?

The number of people insured rose 8.8% to 123.7 million.

The Indonesian life insurance industry booked total income of $6.54b (Rp109t) in the first half of 2025, up 3.6% from a year earlier, according to the Indonesian Life Insurance Association (AAJI).

The number of people insured rose 8.8% to 123.7 million, whilst industry assets grew 2.2% to $37.83b (Rp630.53t). Investment returns improved sharply to $1b (Rp16.68t), compared with $720m (Rp12.05t) in the same period last year.

Premium income was mixed. Weighted premiums rose to Rp58.55t from Rp56.37t, driven by growth in traditional policies, which climbed 6.5% to Rp55.20t. 

Unit-linked products fell 11.7% to Rp32.40t. Regular premiums increased 4.8%, whilst single premiums dropped 9.6%. Sharia-based business rose 8.2% to Rp11.99t.

Claims and benefits paid fell to $4.35b (Rp72.47t), down from $4.66b (Rp77.67t) a year earlier. 

This was mainly due to lower surrenders, which dropped to Rp34.40t from Rp37.58t. Health claims, however, grew strongly by 3.2% to $730m (Rp12.20t), benefiting 5 million people.

Group insurance continued to expand, with covered lives rising to 102.07 million from 92.01 million last year. The total sum assured reached $436.20b (Rp7,270t), up from $402.48b (Rp6,708t).

AAJI Chairman Budi Tampubolon said the sector remains supported by national economic growth and sees opportunities in strengthening the role of life insurance agents.

($1.00 = Rs16,651.60)