Significant Surge in Total Insured Population of the Life Insurance Industry in Q1 2023

Data compiled by the Indonesian Life Insurance Association (AAJI) shows that the growth of total policyholders in the life insurance industry surged 16.6% year-on-year (yoy) in Q1 2023 compared to the same period the previous year.

A policyholder is a party facing the risk covered by an insurance or reinsurance agreement.

Budi Tampubolon, Chairman of AAJI, stated that the total number of policyholders in the health insurance industry reached 87.54 million in Q1 2023, compared to 75.06 million in Q1 2022.

"This increase was driven by a 42.4% rise in individual policyholders and a 6.7% increase in group policyholders," said AAJI Chairman Budi Tampubolon at a press conference on the Q1-2023 Life Insurance Industry Performance Report in Jakarta on Wednesday, March 24, 2023, as reported by Antaranews.

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In detail, individual policyholders reached 29.74 million in Q1 2023, an increase of 8.85 million (yoy) from 20.89 million in the previous year.

Meanwhile, the total number of group policyholders reached 57.80 million in Q1 of this year, an increase of 3.36 million from 54.17 million in Q1 2022.

"So, the year-on-year growth is very impressive. The significant increase is driving improved penetration of the total population," said Budi.

Budi explained that in addition to the growth in the total number of policyholders, insurance coverage also increased.

In Q1 2023, the sum insured in the life insurance industry was recorded at Rp5,002.29 trillion. This figure increased by Rp737 trillion, or approximately 17.3% (yoy), compared to Rp4,270 trillion in Q1 2022.

The breakdown shows individual insurance coverage amounted to Rp2,635.7 trillion in Q1 2023, a growth of 14.8% (yoy) from Rp2,300 trillion in Q1 2022.

Meanwhile, group insurance coverage collected Rp2,366.6 trillion in Q1 2023, up 20.1% (yoy) from Rp1,970 trillion in Q1 2022.

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