Group Clients Boost Insurance Industry’s Revenue Growth in Indonesia
Ivan Dasa Saputa
Indonesia’s life insurance industry revenues grew by 8 percent last year to Rp 110.61 trillion ($12 billion), prompted by the swelling number of group clients and a hike in new business premiums.
The industry recorded Rp 94.43 trillion in total premiums last year, an increase of 24 percent from the figure in 2010, according to Hendrisman Rahim, the chairman of the Indonesian Life Insurance Association (AAJI).
“The increased premium revenues mostly came from new business premiums, which reached Rp 67.65 trillion [in 2011], or grew by 28.45 percent,” Hendrisman said in Jakarta on Friday.
He added the number of group clients grew significantly by 71 percent to a total of 40,829,063 people in 2011, although the number of individual clients, on the contrary, declined to 8,991,932 from 9,332,136.
“But the decline was attributable to the growth of group clients,” the head of AAJI’s department of communications, Nini Summational, said.