Individual health claims rise 29.3% as overall payouts dip in Indonesia

Surrender claims and death claims fell by 13.5% YoY.

The life insurance industry in Indonesia paid out $4.89b (IDR77.67t) in claims to over 9.82 million beneficiaries during the first half of 2024 (H1 2024), according to Freddy Thamrin, head of Consumer Literacy & Protection at Life Insurance Association (“AAJI” or Asosiasi Asuransi Jiwa Indonesia).

Whilst the total claims decreased overall, health-related claims rose significantly during this period, AAJI data showed.

Surrender claims and death claims fell by 13.5% year-on-year (YoY)  and 5.1% YoY, respectively, driving the overall decline. However, health claims surged by 26% to $0.74b (IDR11.83t) in H1 2024.

Individual health claims increased by 29.3% YoY to $0.48b (IDR7.62t), whilst group health claims grew by 20.3% YoY to $0.27b (IDR4.21t).

The ratio of health insurance claims to premium income reached 105.7% YoY, indicating that payouts exceeded premiums collected, presenting financial challenges for insurers.

Thamrin attributed the rise in health claims to growing medical inflation and emphasised the industry's commitment to providing quality healthcare services.

He noted ongoing coordination with regulators, the Ministry of Health, and healthcare providers to address these challenges and ensure sustainability in managing health insurance claims.

In terms of investment, the life insurance industry's total portfolio reached $33.95b (IDR538.80t) as of June 2024.

($1.00 = IDR15922.15)