Life revenues up 50% in Indonesia

February 20 2017 by InsuranceAsia News Staff

Revenues derived by Indonesia’s life insurance sector jumped 57.4% to Rp208.92 trillion (US$15.7 billion) in 2016 compared to the previous year, according to the Indonesian Life Insurance Association.

The association’s chairperson, Hendrisman Rahim, said the increase reflects the continued growth of life cover industry in South-East Asia’s largest economy.

The hike in total premium revenues was complemented by the growth in bancassurance segment revenues, which posted a 74.1% increase, accounting for 43.3% of the industry’s total revenues for the year.

Other growth drivers were agency distribution and alternative distribution channels, contributing 38.9% and 17.7%, respectively, to total revenues in 2016.

However, despite the revenue hike, insurance penetration rate in Indonesia stood at a meagre 2.6% last year, way below the rate in Malaysia, Singapore, and Thailand, which are at over 5%, according to the Financial Services Authority.