Life Insurance Indonesia

According to AAJI, insurance agents contribute the greater part of the premium income of local insurance companies despite the increase in the use of banking channels, or bancassurance, to net new policyholders.

“Our data shows that the agents contributed almost 50 percent of last year’s Rp 121 trillion [US$8.85 billion] in life insurance premiums,” AAJI chairman Hendrisman Rahim said earlier, adding that the association hoped to have 500,000 agents by year-end and 1 million agents by 2020.

As many as 454,706 licensed life insurance agents were recorded as of June, a 27.46 percent increase from the 356,731 agents recorded in 2013.


The annual average growth since 2013 reached 17 percent, according to AAJI data.AAJI acting executive director Togar Pasaribu revealed that the contribution by agents was closely followed by bancassurance at around 48 percent while the remainder came from other sources, including telemarketing.


AAJI has forecast the industry’s premium growth to reach between 20 and 30 percent next year. As of September this year, the association reported that its members posted a total premium revenue of Rp 100 trillion, a 20 percent.