News eDaily26 May 2017

Indonesia:Life sector enjoys 28% jump in premiums in 1Q

| 26 May 2017

Premiums in the Indonesian life industry soared by 28.15% to IDR35.19 trillion (US$2.64 billion) in the first quarter of this year, compared to the corresponding quarter last year, according to data from the Financial Services Authority (OJK).

The pace of growth in the life sector has picked up, as the increase in life premiums in the first quarter of 2016 was 24.02%, according to local media reports.

Executive Director of the Indonesian Life Insurance Association (AAJI) Mr Togar Pasaribu said: "Our hope is that this achievement can be maintained until the fourth quarter."

Expectations are that the government's infrastructure development programme this year, mostly outside Java, will have a positive impact on the economy of the surrounding regions and boost insurance penetration.

Mr Togar said that currently less than 5% of the total population of Indonesia have life insurance.

The AAJI's Head of Inter-Agency Relations, Ms Nelly Husnayati, said the premiums accumulated in 2016 was IDR167 trillion, or an increase of about 30% compared to 2015.

Part of the increase is attributed to the agency force. Based on data collected by AAJI, the number of licensed insurance agents has continued to increase from around 415,000 in 2014 to 543,000 in 2016.


 

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