Accelerating Medical Claims Indonesia

The life insurance industry in Indonesia paid out $4.89b (IRD77.67t) in claims to over 9.82 million beneficiaries during the first half of 2024 (H1 2024). Whilst the total claims decreased overall, health-related claims rose significantly during this period. 

Surrender claims and death claims fell by 13.5% year-on-year (YoY) and 5.1% YoY, respectively, driving the overall decline. However, health claims surged by 26% to $0.74b (IDR11.83t) in H1 2024.

Individual health claims increased by 29.3% YoY to $0.48b (IDR7.62t), whilst group health claims grew by 20.3% YoY to $0.27b (IDR4.21t). The ratio of health insurance claims to premium income reached 105.7% YoY, indicating that payouts exceeded premiums collected, presenting financial challenges for insurers.

The rise in health claims is attributed to growing medical inflation and emphasized the industry's commitment to providing quality healthcare services. Ongoing coordination with regulators, the Ministry of Health, and healthcare providers to address these challenges and ensure sustainability in managing health insurance claims.

In terms of investment, the life insurance industry's total portfolio reached $33.95b (IDR538.80t) as of June 2024.