Indonesia’s life insurance industry experienced a notable decline in its total revenue during the first quarter of 2026, as reported by the Indonesian Life Insurance Association (AAJI). The industry recorded a total income of Rp 47.63 trillion, marking a 6 percent decrease compared to Rp 50.66 trillion achieved in the corresponding period of the previous year.
Albertus Wiroyo, Chairman of AAJI’s Management Board, confirmed these figures in a press release issued on Tuesday, June 2, 2026. “Throughout January to March 2026, the life insurance industry posted a total overall revenue of Rp 47.63 trillion,” Wiroyo stated, highlighting the challenging quarter.
Delving deeper into the specifics, the industry’s unweighted premium income saw a marginal dip of 0.5 percent year-on-year, falling from Rp 47.50 trillion to Rp 47.27 trillion. Concurrently, the weighted premium income registered a more pronounced decrease of 4.5 percent, moving from Rp 31.49 trillion to Rp 30.08 trillion, reflecting shifts in policy sales and valuation.
Despite the overall revenue contraction, some segments demonstrated resilience. Albertus Wiroyo pointed out that new business premiums showcased robust growth, increasing by 5.0 percent year-on-year to reach Rp 27.9 trillion. Furthermore, the number of insured individuals expanded significantly by 20.9 percent, reaching an impressive 118.28 million people. However, total claims and benefits paid during Q1 2026 amounted to Rp 38.73 trillion, an increase of 1.5 percent year-on-year from the previous year’s Rp 38.16 trillion.
Wianto Chen, Head of AAJI’s Literacy and Consumer Protection division, shed light on the nature of these rising claims. He noted a particularly significant surge in contract termination claims, which jumped by a remarkable 112.0 percent to Rp 10.45 trillion. This substantial increase indicates a growing number of policyholders reaching the end of their protection period and successfully receiving benefits in accordance with their policy terms.
In a contrasting trend, surrender claims witnessed a positive reduction, decreasing by 30.4 percent to Rp 13.37 trillion. This particular development suggests a stronger inclination among the public to maintain their life insurance policies, recognizing them as vital components of long-term financial protection. Wianto also emphasized, “The increase in health claims underscores that public demand for healthcare services remains high, and health insurance protection continues to play a critically important role.”
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Summary
Indonesia’s life insurance industry reported a 6 percent decline in total revenue for the first quarter of 2026, dropping to Rp 47.63 trillion from Rp 50.66 trillion the previous year. This contraction included a 0.5 percent dip in unweighted premium income and a 4.5 percent decrease in weighted premium income. Meanwhile, total claims and benefits paid rose by 1.5 percent to Rp 38.73 trillion, driven largely by a significant 112 percent surge in contract termination claims.
Despite the revenue downturn, the industry saw positive growth in new business premiums by 5 percent and an expansion in the insured population to 118.28 million individuals. Notably, surrender claims decreased by 30.4 percent, indicating a stronger consumer commitment to long-term policies. Industry representatives highlighted that the high demand for health insurance remains a vital component of the sector’s performance.