Q4 2020 brings prosperity to Indonesian life insurers

Revenue surged 81.7% to $6.4b amidst economic improvements.

The Indonesian life insurance industry recorded growth trends in Q4 2020, driven by economic improvements, higher public awareness of health insurance and the COVID-19 vaccination, according to the country’s life insurance association (AAJI).

Revenue surged 81.7% to $6.4b (IDR91.86t) in Q4 from $3.5b (IDR50.56t) in Q3, with investment returns hitting $2.46b (IDR35.52t). However, on a YoY basis, Q4 2020 revenue saw a slowdown from Q4 2019.

The association is expecting premium income to post double-digit growth this year, said its head of actuarial and risk management Fauzi Arfan.

“The life insurance industry is increasing collaboration and strengthening distribution channels to be able to continue to reach customers despite all the limitations of regulations during this pandemic period," he said.