Indonesia: Life sector on target to achieve 15% growth this year
Source: Asia Insurance Review | Nov 2016
The life insurance industry expects to book 15% growth in premium income this year, and had achieved half of that target by June. Growth of 15% would take the full-year premium income to IDR148 trillion (US$11.4 billion).
In 1H2016, life insurance premiums reached IDR74.6 trillion, 10% higher than for the corresponding period last year, reported The Jakarta Post. New premiums climbed by 10.8% to IDR43.4 trillion, compared to 28.2% growth a year ago.
Indonesia Life Insurance Association (AAJI) Chairman Hendrisman Rahim said: “We are upbeat that business will still grow at a 10% to 30% rate, whatever the situation is.”
Investment returns stood at IDR21.92 trillion for 1H2016. In contrast, the industry saw investment losses of IDR710 billion in 1H2015. AAJI attributes the results to positive stock market movements.
Sales agents were still the main contributors to life insurance sales in the first half of 2016, contributing IDR30.79 trillion in premiums or 41% of total premiums for the period. Bancassurance contributed IDR28.68 trillion or 38.4% of the total, telemarketing accounted for IDR1.89 trillion (2.53%) while other channels contributed IDR13.25 trillion (17.8%).