The Indonesian Life Insurance Association (AAJI) reported a total premium income of IDR 47.2 trillion for the first quarter of 2026. This figure represents a slight 0.5% year-on-year (yoy) decline from the IDR 47.50 trillion recorded during the same period in 2025.
Based on product types, traditional life insurance remains the primary driver of the industry’s premium income, contributing IDR 30.1 trillion. However, this segment experienced a 2.9% yoy decrease compared to the IDR 31 trillion recorded in the previous year.
In terms of distribution, the bancassurance channel remains the largest contributor with a premium income of IDR 18.54 trillion, while alternative distribution channels recorded premiums of IDR 14.44 trillion. Meanwhile, the agency channel showed positive momentum, growing by 1.2% to IDR 14.29 trillion. Additionally, new business premiums grew by 5.0% to IDR 27.90 trillion, and the total number of insured individuals rose significantly by 20.9% to 118.28 million people.
Albertus Wiroyo, Chairman of the AAJI Board, explained that throughout the first quarter of 2026, the life insurance industry posted a total overall revenue of IDR 47.63 trillion. This is a 6% yoy decrease from the IDR 50.66 trillion recorded in the same period last year.
“At the same time, the industry remains committed to its responsibilities, paying out IDR 38.73 trillion in claims and benefits to the public, which represents a 1.5% yoy growth,” Albertus stated during a press conference in Jakarta on Tuesday (June 2).
Handojo G. Kusuma, AAJI’s Head of Inter-Institutional, Regulatory, and Stakeholder Relations, noted that the life insurance industry continues to maintain financial resilience through prudent and diversified investment management. In the first quarter of 2026, total industry assets increased by 5.8% to IDR 652.89 trillion, while total investments grew by 5.7% to IDR 571.70 trillion.
According to Handojo, the increase in assets and investments demonstrates the robust condition of the life insurance industry. It reflects the industry’s ability to maintain financial stability and fulfill its obligations to policyholders. “The long-term orientation of life insurance investments is a vital factor in maintaining stability and ensuring companies can meet their commitments to policyholders,” Handojo added.
He further explained that the industry’s investment diversification is reflected in portfolio placements across various instruments, with Government Securities (SBN) and stocks remaining the primary choices. The industry continues to balance the optimization of investment returns with long-term risk management amidst market dynamics.
The life insurance industry managed investments worth IDR 571.7 trillion in Q1 2026, up 5.7% compared to the previous year. Government Securities (SBN) became the largest investment instrument with a value of IDR 248.03 trillion, accounting for 43.4% of the industry’s total investment portfolio. The value of SBN investments increased by 15.8% annually. AAJI noted that the insurance industry also supports government development financing through these SBN placements. Beyond SBN, investment funds were also placed in stocks (IDR 112.64 trillion) and mutual funds (IDR 72.45 trillion).
Wianto Chen, AAJI’s Head of Literacy and Consumer Protection, stated that the life insurance industry is continuously adapting to the increasingly diverse protection needs of the public. This is evident in the development of claim payments in Q1 2026, ranging from end-of-contract benefits to health protection.
AAJI recorded that end-of-contract claims surged by 112% annually to IDR 10.45 trillion. This spike indicates that more policyholders are reaching the end of their coverage period and receiving benefits according to their policy terms. In contrast, surrender claims fell by 30.4% to IDR 13.37 trillion.
Furthermore, the industry paid out death claims totaling IDR 2.83 trillion in Q1 2026. Health claims saw a 15.3% increase, reaching IDR 6.7 trillion. According to AAJI, the rising trend in health claims is a primary concern for the industry, following the high demand for healthcare services.
“Therefore, the industry is currently adapting through transformations that align with regulatory policies, ensuring that health protection can continue to provide optimal benefits for the public in the long term,” Wianto added.
How are the Prospects Until the End of the Year?
Wianto also projected that health insurance will remain a key growth engine for the life insurance industry moving forward. He noted that health insurance products are a significant contributor to the industry’s premium income. He assessed that the growth potential for health insurance remains vast, given that health insurance penetration relative to Indonesia’s Gross Domestic Product (GDP) is still low compared to other countries in the region.
With low penetration rates and increasing demand for health protection, the demand for health insurance products is expected to continue growing. However, Wianto pointed out that the industry still faces challenges in balancing the supply and demand for healthcare services.
He hopes for stronger coordination between regulators and health insurance providers so that health insurance can once again become a profitable business line for life insurance companies while expanding protection access for the community.
Regarding premium growth, Wianto noted that individual health insurance premiums declined from IDR 36.6 trillion to IDR 35.75 trillion. Conversely, group health insurance premiums saw an increase. According to him, this condition is expected amid rising health insurance premiums and a slowing economy affecting public purchasing power. These factors have caused demand from the individual segment to weaken compared to the corporate or group segment.
“Meanwhile, from the group insurance side, the trend for health insurance is increasingly on the rise,” he concluded.
Summary
The Indonesian Life Insurance Association (AAJI) reported a total premium income of IDR 47.2 trillion for the first quarter of 2026, marking a slight 0.5% year-on-year decline. Despite this dip, the industry demonstrated financial resilience as total assets grew by 5.8% to IDR 652.89 trillion, supported by prudent investment management with Government Securities serving as the primary instrument. Furthermore, the number of insured individuals rose significantly by 20.9%, reaching 118.28 million people.
The industry continued to fulfill its obligations, paying out IDR 38.73 trillion in claims and benefits, which represents a 1.5% annual increase. While individual health insurance premiums saw a decline due to economic pressures, the industry anticipates continued growth in the health sector, which is projected to be a key driver for the remainder of the year. AAJI remains focused on navigating market dynamics by balancing health protection needs with long-term financial sustainability.