Life Insurance Claim Payments Reach Rp107.45 Trillion in 2021

According to a report by the Indonesian Life Insurance Association (AAJI), up to the third quarter of 2021, the life insurance industry had paid out Rp107.45 trillion in claims and benefits. This figure is down slightly by 2% compared to the Rp109.68 trillion paid out in the third quarter of 2020.

The most frequently paid claim type in the third quarter of 2021 was surrender claims or redemption value, amounting to Rp59.42 trillion. Payments for this type of claim decreased by 11.9% compared to the same period in 2020, which amounted to Rp67.46 trillion.

Meanwhile, partial withdrawal claims increased by 22.2% year-on-year (yoy) from Rp10.31 trillion to Rp12.6 trillion in the third quarter of 2021.

According to AAJI Chairman Budi Tampubolon, the slowdown in surrender claims and the growth in partial withdrawal claims indicate that the public is increasingly aware of the importance of insurance.

AAJI assesses that people are not rushing to close policies because they want to protect themselves and their families from the risks of the Covid-19 pandemic.

The payment of claims that have ended their contracts amounted to Rp7.55 trillion in the third quarter of 2021, down 35.5% compared to the same period the previous year, which reached Rp11.68 trillion.

Meanwhile, the total benefits for death claims up to the third quarter of 2021 reached Rp14.58 trillion, or an increase of 65.7% (yoy).

Health claim benefits also increased by 43.6% to Rp4.81 trillion. AAJI considers this significant benefit to be very useful in easing the burden on many Indonesian families during difficult times.

Payments for other benefits also grew by 29.1% from Rp3.72 trillion (yoy) to Rp4.8 trillion in the third quarter of 2021.

(Also Read: [AJB Bumiputera Equity Minus Rp21.9 Trillion in 2021](https://databoks.katadata.co.id/datapublish/2022/02/16/ekuitas-ajb-bumiputera-minus-rp219-triliun-pada-2021))