Life insurance coverage in Indonesia is said to have risen by 15.1 percent year-on-year (YOY) in Q1 2012, according to a media report citing the Association of Indonesian Life Insurance Companies (AAJI).
The Jakarta Post, reported that this means that the number of Indonesian consumers taking out life insurance coverage reached 52.8m.
It added that individual and corporate markets accounted for 9.73 m and 43.03m policy holders respectively.
AAJI chairman Hendrisman Rahim was reported as saying that the increase in coverage reflects a higher interest in life insurance among Indonesians.
Rahim was quoted as saying “More and more people have realised the importance of owning a life insurance policy as a long-term security measure. Indonesia’s positive economic growth, despite the global crises, also plays a role in this figure because people’s buying power has also increased. Right now, traditional premiums dominate the market.”
Hendrisman was reported as saying that the association expects a 30 percent growth in total revenues by the end of 2012.
AAJI co-chairman of operations and administration, Eddy K.A. Berutu, reportedly said that insurance companies would try to cover more people on low incomes by offering micro insurance policies for future customers.
Berutu was quoted as saying: “The premium will be adjusted to these people’s income so that they can afford to take out life insurance.”
Berutu reportedly added that AAJI members also planned to increase the number of licensed insurance agents in order to expand their operations and reach the growth target.
“We are targeting 500,000 licensed insurance agents by 2014. Until March 2012, there were more than 274,000 agents operating in Indonesia. Last year we had about 220,000 agents. The number is still low for Indonesia’s population,” Berutu reportedly said.