Indonesia Life Insurance Update - 2025

Indonesia Life Insurance industry booked total income of $6.54b (Rp109t) in the first half of 2025, up 3.6% from a year earlier, according to the Indonesian Life Insurance Association (AAJI).

The number of people insured rose 8.8% to 123.7 million, whilst industry assets grew 2.2% to $37.83b (Rp630.53t). Investment returns improved sharply to $1b (Rp16.68t), compared with $720m (Rp12.05t) in the same period last year.

Premium income was mixed. Weighted premiums rose to Rp58.55t from Rp56.37t, driven by growth in traditional policies, which climbed 6.5% to Rp55.20t. 

Unit-linked products fell 11.7% to Rp32.40t. Regular premiums increased 4.8%, whilst single premiums dropped 9.6%. Sharia-based business rose 8.2% to Rp11.99t.

Claims and benefits paid fell to $4.35b (Rp72.47t), down from $4.66b (Rp77.67t) a year earlier. 

This was mainly due to lower surrenders, which dropped to Rp34.40t from Rp37.58t. Health claims, however, grew strongly by 3.2% to $730m (Rp12.20t), benefiting 5 million people.

Group insurance continued to expand, with covered lives rising to 102.07 million from 92.01 million last year. The total sum assured reached $436.20b (Rp7,270t), up from $402.48b (Rp6,708t).

Who Is Bai Fangli?

In 1987, at the age of 75, Bai Fangli came back to his hometown planning to retire from his backbreaking job but he saw children working on the fields because they were too poor to afford school fees.

Bai had compassion for this children and he then decided to forfeit his retirement and return to Tainjin to work as a rickshaw puller. He got an accommodation close to the railway.

Bai worked hard to support the children in his hometown. He would wait 24 hours a day, eat simple food and wore second hand discarded clothes. All this was done in order to pay the school fees of children who could not afford education.

By the time he had reached 90 years in 2011, he had donated 350,000 yuan to support more than 300 students. No wonder when he drove his Rickshaw to Tianjin YaoHua Middle School, to deliver his last installment of money and announced his retirement, both teachers and students were moved to tears.

Bai Fangli died at the age of 93 but his legacy has never been forgotten. He is remembered in China as a virtuous man who worked hard to provide education in his society

Age is no barrier to making an impact. Love and compassion is the greatest motivation to change. So be an inspiration; give light to others.