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.

‘Greater
interest’

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.