Indonesia: Protection life sales predicted to be flat this year
Source: Asia Insurance Review | Jun 2018
Sales of traditional life insurance products are predicted to be flat this year, the Indonesian Life Insurance Association (AAJI) has projected. Premiums from this segment are expected to grow marginally or remain at around the 2017 level.
AAJI data show that in 2017, the overall life premium collected stood at IDR254.2tn ($18bn). Of this total, traditional products accounted for 46.9%, while unit-linked products accounted for a larger portion of 53.1%.
AAJI executive director Togar Pasaribu said that customers these days are more interested in buying unit-linked insurance products.
“No wonder nearly 90% of life insurance companies sell unit-linked products,” Mr Togar told the news website Kontan.
He said the level of public understanding of traditional life products is still low. Traditional products offer life protection services, while unit-linked products can provide a return on investment. A