Life Insurance Industry Pays Out Rp45 T in Q1 of 2023
25 May 2023 11:07 WIB
TEMPO.CO, Jakarta - The Indonesian Life Insurance Association (AAJI) noted that the total claims and benefits paid by the life insurance industry in the first quarter (Q1) of 2023 reached Rp 45.56 trillion, which is a 5.1 percent increase on an annual basis (year-on-year/yoy) compared to the Rp 43.35 trillion in the first quarter of 2022.
"Looking at the number of beneficiaries of insurance claims and benefits, it was recorded that the number reached 3.82 million people," said Head of the Distribution Channel & Insurance Inclusion Division of AAJI Marketers Elin Waty during a press conference on the 2023 First Quarter Life Insurance Industry Performance Report in Jakarta, Wednesday, May 24.
Citing the data by AAJI, end-of-contract claims decreased by 51.4 percent (yoy) valued at Rp5.41 trillion from the previous Rp11.14 trillion. End-of-contract claims contributed 11.9 percent of total life insurance claims in the period.
In contrast to end-of-contract claims, the number of people surrendering their life insurance policy increased by 39 percent (yoy) from Rp19.25 trillion in last year’s Q2 to Rp26.75 million this year. Surrendering policy claims are the largest contributor to total life insurance claims, amounting to 58.7 percent.
Partial withdrawal claims, which contribute to 8.7 percent of total claims, decreased by 19.5 percent to Rp3.96 trillion from Rp4.92 trillion last year. Meanwhile, death claims that contribute to 6.3 percent of payments decreased by 5.8 percent from Rp3.07 trillion to Rp2.89 trillion.
Meanwhile, health claim payments reached Rp4.60 trillion which is up 38.6 percent (yoy) from Rp3.32 trillion previously. Individual health claim payments were logged at Rp2.9 trillion, or up 42.7 percent from the previous Rp2.03 trillion.
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