Indonesia's life insurance industry chalked up premium income of IDR88.49tn ($5.7bn) in the first six months of this year, 2.6% higher than in the first half of 2023, according to data from the Life Insurance Association of Indonesia (AAJI).
"From the beginning of the year to June 2024, we saw a positive indication of the growth of the life insurance industry," the Antara News Agency reported, quoting AAJI chairman Budi Tampubolon.
Mr Budi said that premium income from traditional or protection-type life insurance products stood at IDR51.81tn, an increase of 18.6%. This was 58.5% of the total premium income of the life insurance market in 1H2024.
Meanwhile, premium income from unit-linked life insurance products (PAYDI) amounted to IDR36.68tn, a year-on-year drop of 13.8%.
Conventional life insurance premium income reached IDR77.41tn in the first half of this year, inching up by 1.9%, while the contributions from family takaful business were IDR11.08tn, rising by 7.6%.
Mr Budi added that the growth of the life insurance business was due to good performance in every distribution channel in the life insurance industry.
The bancassurance channel generated the most premiums of IDR36.92tn or an increase of 1.3% year on year. The agency channel generated premium revenue of IDR27.94tn, representing an increase of 3.4%, while alternative distribution channels accounted for IDR23.64tn, 3.8% higher year on year.
However, investment income in the life sector plunged by 26.4% year on year to IDR12.32tn in 1H2024, due to the weak stock market. This had an impact on the total net income of the life insurance industry which dipped by 1.9% year on year to IDR105.25tn in the first six months of this year.