batampos – The performance of the life insurance industry experienced a decline in the first three months of 2022. The total revenue recorded reached Rp 62.27 trillion. This number is down 0.6 percent year-on-year (YoY).
“This is due to a decrease in the total component of premium income, reinsurance claims, and other income,” said Chairman of the Executive Board of the Indonesian Life Insurance Association (AAJI) Budi Tampubolon, Friday (10/6).
Regular (weighted) premium income dominates 91.6 percent of total premium income. This value indicates a shift in fund placement preferences. From single premiums to regular premiums, people need life insurance protection.
Budi said overall policies increased by 17.4 percent to 20.87 million policies. While the number of insured grew 18.1 percent or about 11 million people. Thus, the life insurance industry provides protection to 75.45 million people with an insured value of IDR 4,245.01 trillion.
“As a form of responsibility to customers, the life insurance industry has paid claims and benefits of Rp. 43.35 trillion to more than 5.3 million beneficiaries,” he explained.
In addition, public awareness of the long-term protection of life insurance products tends to increase. This is reflected in the significantly reduced value of the claim for redemption (surrender) and partial withdrawals. They fell 42.5 percent and 31.4 percent, respectively.
“This shows that the number of people canceling their policies has dropped dramatically,” he said.
Budi said that the life insurance industry also supports the country’s development and the stability of the country’s economy. Namely through increasing investment in Government Securities (SBN) worth Rp 123.03 trillion.
“In the first quarter of 2022, more than 3 million people received health insurance benefits, including claims for Covid-19 and its variants,” he said.
Separately, OJK Deputy Commissioner of Public Relations and Logistics Anto Prabowo said that life insurance premium income until the first quarter of 2022 shrank 14.33 percent YoY to Rp 43.67 trillion. The decline occurred consistently in January–March. It is suspected that the impact of the agency distribution channel is not optimal and there is an adjustment to the implementation of SEOJK PAYDI.
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“The OJK report shows premium income continues to decline from January 2022 by 20.93 percent to Rp 19.09 trillion, February 2022 by 22.03 percent to Rp 26.98 trillion, until March 2022 minus 14.13% to Rp 43.67 trillion compared to last year. Rp 50.86 trillion in March 2021,” explained Anto.
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LIFE INSURANCE PERFORMANCE QUARTER I 2022
– Total revenue: IDR 62.27 trillion (-0.6 percent YoY)
– Total asset value: IDR 617.02 trillion (+6.6 percent YoY)
– Total value of technical reserves: IDR 460.96 trillion (+0.5 percent YoY)
– Total value of claims and benefits: IDR 43.35 trillion (-15.9 percent YoY)
– Total claim submission: IDR 15.99 trillion (-42.5 percent YoY)
– Value of partial withdrawal claims: IDR 4.25 trillion (-31.4 percent YoY)
– Total policy: 20.87 million people (+17.4 percent YoY)
– Total coverage: 75.45 million people (+18.1 percent YoY)
Source: AAJI (*)
Reporter: JP Group