Indonesia's life insurers cover 168.03 million people in 2025

The insured population increased 8.6% year-on-year in 2025.

Indonesia’s life insurance sector in 2025 registered a total industry revenue of $13.6b (Rp238.7t), a 9.3% increase year-on-year (YoY), driven by strong investment returns and an increase in total insured individuals.

The Indonesian Life Insurance Association (AAJI) data further showed that results from 57 life insurance companies saw their overall premium income experience a minor decline of 1.8%. AAJI officials said this was a shift toward regular premium payments.

New business premiums paid on a regular basis grew by 7.8% YoY. Additionally, the total number of insured people rose by 8.6% YoY, bringing the total to 168.03 million individuals.

The industry paid out a total of $8.4b (Rp146.7t) in claims and benefits to approximately 9.59 million beneficiaries throughout the year.

Total claims actually fell by 7.8% YoY, a drop largely attributed to a 19% reduction in policy surrenders, indicating that more policyholders are maintaining their long-term coverage.

In contrast, health insurance claims rose by 9.1% YoY to $1.5b (Rp26.7t) across both individual and group plans.

AAJI plans to focus heavily on health insurance management in 2026 under new regulatory guidelines to control these costs.

Total industry investments grew to $33.7b (Rp590.5t) in 2025, up from $30.9b (Rp541.6t) the year before.

The largest portion of this portfolio was allocated to government securities, which accounted for $14.2b (Rp248.3t), or roughly 42% of total investments.

The remaining funds were distributed across shares at $7.3b (Rp128.7t), mutual funds at $4.2b (Rp74.1t), corporate sukuk at $3.0b (Rp53.5t), and deposits at $1.8b (Rp32.0t).

Looking ahead, the association is preparing for the upcoming regulatory changes deadlines at the end of 2026.

These include stricter capital requirements and the mandatory spin-off of sharia business units.

The association is also rolling out new training and certification platforms to standardise marketing and agent qualifications across the sector.

($1.00 = Rp17,698.86)