Liga Asuransi – The insurance industry in Indonesia continues to exhibit exciting dynamics, with various trends, new regulations, and product innovations that impact various aspects of life. These include life insurance premium growth, opportunities in the automotive sector, OJK policies to increase transparency, and plans to increase BPJS Kesehatan premiums. Not to be missed is the emergence of unique pet insurance products, which are increasingly gaining traction among urban communities. All of these developments reflect how the insurance industry is becoming increasingly relevant and adaptive to the needs of the times.
Life Insurance Premium Revenue Reaches Rp87.6 Trillion! New Trends in the Insurance Industry Begin to Appear
The Indonesian life insurance industry recorded impressive results in the first half of 2025. Based on data Indonesian Life Insurance Association (AAJI), total premium income reached Rp87.6 trillionAlthough this figure is down slightly by 1% compared to the same period last year (Rp88.49 trillion), a new trend is starting to emerge.
Chairman of the AAJI Board of Directors, Budi Tampubolon, revealed that if calculated unweighted, in fact there was an increase in premium income of3,9%This means the life insurance industry is entering a new, healthier phase of stability.
Traditional Products Are Increasingly Dominant
From the product side, traditional life insurance dominates with premium income. Rp55.2 trillion, go on 6,5% YoY from Rp51.81 trillion. Meanwhile, unit-linked products or PAYDI actually fell11%to Rp. 32.4 trillion.
Budi explained that this situation aligns with trends in several Asian countries with high insurance penetration, where traditional products account for up to 80% of total premiums. “We’re seeing the market shift toward traditional products, and this signals industry stability,” he said.
Conventional Declines, Sharia Grows
When viewed based on business units, conventional life insurance premiums have decreased 2,3% YoY to Rp75.61 trillion. In contrast, sharia life insurance products grew rapidly, rising 8,2% YoY with a value of IDR 11.99 trillion.
New Business Sluggish, Continuing Premiums Rise
In terms of business type, new business premium income decreased 6,2% YoY to Rp47.94 trillion. However, continued premiums managed to grow 6,1% YoY to Rp. 39.66 trillion.
When combined with investment returns, the total income of the life insurance industry in the first half of 2025 reached Rp109 trillion, growing 3,6% YoY compared to IDR 105.25 trillion in the same period last year.
Claims Down, Industry Healthier?
Interestingly, claim payments in the first half of 2025 actually decreased 6,7% YoY to Rp72.47 trillion from Rp77.67 trillion previously. This indicates improved risk management and the potential for greater profitability for life insurance companies.
July 2025 Car Sales Weaken Year-On-Year, But a Breath of Fresh Air for the Auto Insurance Industry!
Although car sales in Indonesia in July 2025 showed a year-on-year slowdown, the motor vehicle insurance industry actually sees significant opportunities.PT Asuransi Jasa Indonesia (Jasindo)emphasized that automotive market trends continue to provide positive signals for the vehicle protection business.
Gaikindo Data: Monthly Growth
Based on the recordsAssociation of Indonesian Automotive Industries (Gaikindo), retail car sales in July 2025 were recorded62.770 unit. This figure has increased slightly1,75% month-to-month (MoM)compared to June 2025, although on an annual basis (YoY) it fell quite significantly16,96%.
Jasindo Corporate Secretary, Brellian Gema, emphasized that monthly growth remains a positive signal. “Although there has been a year-on-year slowdown, this actually provides momentum for industry players and insurance companies like Jasindo to offer more innovative motor vehicle protection services,” he said.
Every New Car = New Insurance Potential
According to Brellian, every new vehicle entering the automotive market represents a potential new protection business opportunity. Furthermore, this momentum can also be leveraged to increase public education about the importance of motor vehicle insurance.
“We are optimistic that the automotive market will continue to move dynamically and the need for motor vehicle insurance will continue to increase in the future,” he stressed.
Jasindo’s Performance Jumps 30%
Jasindo’s optimism is growing as the company’s financial performance shows significant growth. By July 2025,Jasindo’s premium income was recorded at IDR 2.64 trillion, going on 30,34% YoYcompared to the same period last year amounting to IDR 2.03 trillion.
With this trend, Jasindo is confident that the automotive and vehicle insurance industry will remain dynamic, even though annual car sales have slowed.
Starting 2025! All Life Insurance Agents Will Be Required to Have QR Codes, Allowing You to Check Authenticity Directly from Your Phone
Financial Services Authority (OJK)officially launched a major innovation to increase transparency and public trust in life insurance marketers. Starting in 2025, everyLife insurance agents in Indonesia are required to have a QR Code on their Registration Certificate (STTD).which is stated on their identity cards and business cards.
This policy was announced byChief Executive of the Insurance, Guarantee and Pension Fund Supervisory Agency of the Financial Services Authority (OJK), Ogi Prastomiyono, in an event 38th Indonesian Life Insurance Association (AAJI) Top Agent Awards (TAA) Convention in Yogyakarta, Thursday (14/8).
Check Insurance Agents Easier & Anti-Fraud
With the QR Code integrated directly intoOJK’s Integrated Licensing and Registration System (SPRINT), the public can scan the code using a mobile phone to verify the authenticity of the license and the agent’s membership status.
This innovation is expected to be able to reduce fraudulent practices, brokering, and illegal agents which often harms prospective policyholders. “Transparency and accountability of the agent profession will be increasingly assured,” Ogi emphasized.
The Role of Insurance Agents Leveling Up in the Digital Era
Furthermore, Ogi emphasized that even though the digital era is developing rapidly, agency channels remain the backbone of life insurance distribution in Indonesia. However, the role of agents is no longer limited to selling products.
“Agents must be able to provide education, build trust, and act as financial consultants for the public. The OJK encourages marketers to possess competence, integrity, and relevance to current developments,” he said.
A New Foundation for Enhancing Public Trust
The implementation of the STTD QR Code is expected to establish a new foundation for strengthening public trust in the life insurance industry. With a more transparent system, potential customers can feel more secure when interacting with agents.
It’s official! PrabowoAgreeBPJS Health Insurance Premium Increase in 2026: Here are the Latest Details You Need to Know
Important news for all BPJS Kesehatan participants! President Prabowo Subianto has given its blessing to the plan to increase BPJS Health contributions which will be implemented in stages starting in 2026. This information is stated inFinancial Note of the 2026 Draft State Budget which has just been published by the government.
Although the amount of the contribution increase and the time of its implementation have not been officially announced, this step is part of the government’s strategy to maintain the sustainability of the program.National Health Insurance (JKN)managed by BPJS Health.
Why Should BPJS Health Contributions Increase?
In Book II of the 2026 Draft State Budget Financial Note, the government explains that the Social Security Fund (DJS)It is estimated that the situation will remain under control until the end of 2025. However, a downward trend has begun to emerge due to the increasing claims ratio in the first half of 2025.
In anticipationriskdeficit, the government is preparing mitigation measures in the form of BPJS Health contribution adjustments so that services main sustainable.
Current BPJS Health Contribution Amount (August 2025)
Before the official increase is implemented, here are the details of the BPJS Health contributions that are currently in effect:
- Non-Worker Participants (BP):
- Class 1: Rp. 150,000 per person/month
- Class 2: Rp. 100,000 per person/month
- Class 3: Rp. 35,000 per person/month (Original price Rp. 42,000, subsidized Rp. 7,000 by the government)
- Contribution Assistance Recipients (PBI): Rp. 42,000 per month (paid in full by the government).
- Government Wage Receiving Worker (PPU) Participants:
- Contribution 5% of monthly salary
- 4% borne by the employer, 1% borne by the participants
- Applies to civil servants, TNI, Polri, state officials, and non-civil servant government employees.
- PPU BUMN, BUMD, Private Sector Participants:
- Contribution 5% of monthly salary/wage
- 4% is paid by the employer, 1% by the participant.
- Additional Family Participants for PPU (4th child and above, parents, in-laws):
- Contribution of 1% of salary/wages per person, paid by wage-earning workers.
- Independence Veterans & Pioneers:
- Contribution of 5% of 45% of the basic salary of PNS group III/A with 14 years of work time.
- All paid by the government.
What Does This Mean for BPJS Kesehatan Participants?
With this planned increase, the public is asked to start preparing for the adjustment of contribution costs in 2026. Although the exact amount has not been announced, this policy aims to maintain the sustainability of the program.servicehealth for more than 200 million JKN participants.
Insurance Investment in SRBI Soars 21-Fold! BPJS Becomes Largest Collector, While Private Sector Dominates General Insurance
InstrumentsBank Indonesia Rupiah Securities (SERBIA) is becoming a new darling for the insurance industry. Based on the latest data,Financial Services Authority (OJK) as of May 2025, total insurance investment in SRBI reachedRp44.86 trillion, or jumped 21 times compared to the same period last year.
However, ownership trends are beginning to shift. In the second quarter of 2025, a decline in investment placements was observed, in line with the move.Bank Indonesia (BI) lowered interest ratesSERBIAand reduced auction volume.
General Insurance Becomes a Major Player in the Private Sector
Of the total, the industry general insurance recorded as the largest holder in the private sector, with an investment valueRp2.6 trillion as of May 2025. This figure overtakeslife insurancewho only holds Rp2.11 trillion, after previously being a dominant player in 2024. Meanwhile, reinsurance, still recording small numbers, only Rp90.2 billion.
The peak of general insurance ownership occurred in March 2025 with Rp2.91 trillion. Meanwhile, the life insurance industry reached its highest point in October 2024, namely IDR 2.52 trillion.
BPJS Becomes the Largest SRBI Collector
Even though private insurance is active, it turns out that BPJS Health and BPJS Employment become the largest SRBI collector. Total social insurance ownership in this instrument reached Rp40.05 trillion, up 27 times from the previous year. Even in April 2025, his ownership had touched Rp41.8 trillion before declining in May 2025.
Why is the SRBI trend starting to decline?
According to Head of Fixed Income Research at PT Mandiri Sekuritas, Handy Yunianto, this decline occurred because SRBI yields continue to fall and are lower than National Securities (SBN) For the insurance industry, which has long-term liabilities, SBN is considered more appropriate.
Bank Indonesia itself confirmed that from January to mid-August 2025, outstanding SRBI decreased from Rp916.97 trillion to Rp720.01 trillion, as a strategy to increase market liquidity.
However, experts believe SRBI remains attractive, depending on market conditions. If interest rates continue to rise, SRBI could potentially become a top choice for investors due to its flexible short-term tenor.
Challenges of the Insurance Industry in Investment
Associate Director of Anugerah Securities, Ramdhan Two Maruto, assessed that SRBI had been a “sweetener” for the insurance industry because it offered high yields when it was first launched in 2023. Now, after the coupon was adjusted, this instrument remains minimal.riskbecause it is equivalent to SBN, only differing in tenor.
Meanwhile, Acting Head of IFG Progress, Ibrahim Kholilul Rohman, warned that the insurance industry should not rely too heavily on investment returns. Many companies fail to manage their portfolios, leading to potential bankruptcy and customer losses. He emphasized that a strong underwriting process must be a priority to ensure that the company’s reserves and assets remain healthy.
Insurance, a Major Investor in the Financial Market
Based on IFG Progress data, the insurance industry is one of the main investors in the financial market, with 78% of assets being invested in the capital market. In detail, 63% was allocated to bonds, 12% to stocks, 11% to deposits, 7% to mutual funds, and the remainder to other instruments 19% of national SBN ownership comes from the insurance and pension fund industry.
Insurance Literacy Rises Sharply, But Policy Values Decline! Sun Life Agent Intan Dewi’s Story Provides the Answer
The 2024 National Survey on Financial Literacy and Inclusion (SNLIK) revealed interesting facts: national insurance literacy has increased drastically from 31.72% (2022) to 76.25% (2024). This means that more and more Indonesians understand the benefits of insurance.
But ironically, the level of inclusion or policy ownership actually decreased from 16.63% in 2022 to only 12.21% in 2024. In other words, people know that insurance is important, but they haven’t really dared to buy a policy.
Challenges in the Field: Intan Dewi’s Story in Pekalongan
This phenomenon was felt directly byDiamond Dewi, a Sun Life Indonesia agent who has had a career since 2009. In a small city like Pekalongan, the challenges are greater because public awareness of protection is still minimal.
According to Intan, there are two common conditions that are often encountered:
- Potential customers already know about insurance, but are hesitant to buy because they don’t understand the details of the benefits and risks.
- Customers who already have a policy, but do not fully understand the product they own.
“It’s important for an agent to understand the product and communicate it honestly. That way, customers can truly experience the benefits of their policy,” said Intan.
Therefore, Intan always makes insurance literacy education as a key pillar in their interactions. They don’t just talk about products, but also broaden their knowledge about diseases, hospitals, and doctor recommendations to provide more relevant support to customers.
From Customer to Top Agent of the Year
Intan’s journey into the insurance world began when she became a Sun Life customer. Encouragement from relatives and a desire to provide greater benefits to the community ultimately led her to become an agent.
His great commitment paid off.In 2025, Intan Dewi was awarded the “Top Agent of the Year” award at the Indonesian Life Insurance Association (AAJI) Top Agent Award (TAA) event.
Albertus Wiroyo, President Director of Sun Life Indonesia, called this award a tangible demonstration of the role of agents in improving insurance literacy:
“Intan Dewi’s success reflects Sun Life’s commitment to providing equitable protection and literacy across Indonesia.”
Agents Are the Front Guard of Insurance
This award also confirms that agents are not just marketers, but rather an important bridge between companies and communitiesAgents must act as consultants, educators, and advocates to ensure the public truly understands and receives the protection they need.
Intan Dewi’s dedication proves that behind the ever-increasing literacy rate, there are dedicated agents who are fighting to increase insurance inclusion.
Pet Insurance is Gaining More Attention, Dogs & Cats Can Now Have Their Own Policies!
The trend of keeping pets in Indonesia continues to grow year after year. Dogs and cats are no longer just companions; they are now treated like family members. This has raised public awareness of the importance of protecting the health and well-being of pets.
This phenomenon has encouraged a number of general insurance companies to introduce pet insurance products. Chairman of the Indonesian General Insurance Association (AAUI), Budi Herawan, explained that the main factor in the birth of this product was the increasing public concern for animal health, especially dogs and cats.
“Besides the awareness factor, the growth of the middle class, the trendpet humanization.“And the increasingly expensive cost of animal care has also triggered the development of animal insurance products,” said Budi (21/8/2025).
Benefits of Pet Insurance
With insurance protection, pet owners can have more peace of mind in managing risks, from medical costs to the risk of loss due to illness or accident.
Medical services for animals are now increasingly comprehensive. Veterinary clinics and hospitals now offer vaccinations, chronic disease treatment, and even surgeries, all of which can cost millions of rupiah. Insurance offers a solution so owners can continue to provide the best possible care without the burden of unexpected expenses.
“Insurance policies help pet owners guarantee quality care while protecting their finances,” Budi explains.
Prospects and Challenges of Pet Insurance in Indonesia
AAUI assesses the prospects for pet insurance in Indonesia as quite promising. The number of households owning pets continues to grow, particularly in urban areas. Urban lifestyles that place pets as an integral part of daily life further reinforce this need.
Despite this, educational challenges remain. Public awareness of the benefits of pet insurance is relatively low. However, with intensive promotion, product innovation, and collaboration with animal lover communities and veterinary clinics, the potential for pet insurance development in Indonesia is believed to be wide open.
Examples of Pet Insurance Products in Indonesia
Several general insurance companies have already introduced pet insurance products, including:
- PT AXA Insurance Indonesia
- Guarantee dogs and cats with official certificates (PERKIN for dogs, ICA for cats).
- Benefits of protection:
- Death & permanent disability due to accident (Rp. 2.5 million – Rp. 25 million).
- Medical expenses due to accidents (Rp. 500 thousand – Rp. 5 million).
- Third party legal liability, including rabies costs (maximum Rp. 25 million).
- Age of animals that can be insured: 30 days – 10 years.
- PT Asuransi Simas Insurtech
- Special products for dogs and cats.
- Protection includes:
- Death due to an accident.
- Loss due to theft by force/force.
- Legal liability towards third parties.
- Coverage value: IDR 5 million – IDR 50 million.
Presence pet insurance is a modern solution for dog and cat lovers in Indonesia. It not only protects owners’ finances but also ensures their pets receive the best care.
With the trend of pet ownership continuing to increase, it is not impossible that in the future pet insurance will become a popular product that every pet owner must have.
—
This latest series of news items confirms that the Indonesian insurance industry is moving towards a more mature, innovative, and responsive phase. From life, vehicle, health, and pet protection, insurance is present not only as a financial instrument but also as an essential part of the modern lifestyle. Going forward, with increasingly stringent regulations, increased literacy, and diverse product innovations, insurance is expected to become an increasingly important pillar in maintaining the economic stability of families and the nation.
To understand more about the protection solutions that suit your needs, you can discuss with us L&G Insurance Broker who are experienced in providing insurance consulting and placement services.
