Indonesia's Financial Services Authority (OJK) noted the performance of the insurance industry, underwriting, and pension fund (PPDP) remained stable in early 2026, supported by a level of solvency that was far above the minimum threshold. But behind the stability, there is a fairly sharp divergence of performance between the life insurance line and the pension fund.
OJK’s Chief Executive of the Supervisory of Insurance, Guarantee and Pension Fund Ogi Prastomyyono said, the total insurance industry assets as of January 2026 reached TDR 1,214tn ($71.9m) or grew 5.96% on an annual basis. Special commercial insurance, assets recorded IDR 995.19tn or up 7.48% y-o-y.
In terms of capital, the industry is still very healthy. Risk Based Capital (RBC) life insurance is recorded at 478.06%, while general insurance is 333%. The figure is well above the minimum threshold of 120% set by the regulator.
However, premium performance shows a contrast. The accumulation of commercial insurance premium income reached IDR 36.38tn or grew 4.67% y-o-y. But the growth was fully supported by general insurance and reinsurance that shot 17.92% y-o-y to IDR 18.42tn.
In contrast, life insurance premiums contracted 6.15% y-o-y to IDR 17.97tn.
This life premium contraction occurs in the midst of strong solubility conditions, indicating more pressure comes from the demand or sale of products than capital resilience.
On the other hand, the pension fund industry actually shows significant acceleration. Total pension fund assets as of January 2026 recorded IDR 1,686tn or grew 11.21% y-o-y, far beyond the growth of insurance industry assets.