The Life Insurance Association of Indonesia (AAJI) has announced that the life sector saw a fall of 5% in total premium income in 2018 to IDR185.88trn ($13bn).
Total new business premiums stood at IDR117.38trn in 2018, down by 8.2% over 2017. Renewal premiums amounted to IDR68.5trn in 2018, 1% higher than in 2017.
Mr Maryoso Sumaryono, AAJI co-chairman, said that the decline in total premiums was due to reduced premium income from the bancassurance channel. This channel contributed 42.9% of total life premiums.
Industry players also cite the economy for the insurance sector's performance. Indonesia's economic growth rate last year stood at 5.17%, according to the Central Statistics Agency (BPS), below the targeted rate of 5.4% but higher than 2017's actual rate of 5.07%.
Investment returns plunged by 84.5% from IDR50.45trn in 2017 to only IDR7.83trn last year.
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