Indonesia Insurance Income Growth Premium Decline 2025

Indonesia's life insurance industry recorded steady growth in coverage and income in the first nine months of 2025, despite a slight decline in premiums, according to the Indonesian Life Insurance Association (AAJI).

AAJI data from 56 life insurers showed the number of insured persons reached 151.56 million as of September 2025, up 12.8% year on year. AAJI claim the increase reflects rising public awareness of the need for long-term financial protection.

Both individual and group segments expanded. Individual policyholders rose 16.9% to 22.32 million, whilst group insured lives increased 12.1% to 129.25 million. Total industry income grew 3.2% to $10.28b (Rp174.21t) in January–September 2025.

Premium income, however, edged down 1.1% to $7.86b (Rp133.22t) due to a fall in single-premium sales as household purchasing power continued to recover.

AAJI said regular premiums remained resilient, rising 5% to $4.90b (Rp83.04t), indicating that consumers are shifting towards more affordable periodic payment products.

Insurance Scam, Tawau, Malaysia

A total of 80 individuals, including 78 Chinese nationals, were charged in the Magistrate’s Court here on Wednesday with jointly engaging in a criminal conspiracy to deceive victims in an insurance scam last week.

According to the charge, the group, which also includes one Laotian and one Myanmar national, allegedly conspired to deceive victims through phone and video calls while impersonating police officers from China, with the offence said to have been committed at a premises in the district at 9.25pm on April 7, 2026.

The offence, framed under Section 420 of the Penal Code and punishable under Section 120B(2) read together with Section 34 of the same Code, carries a penalty of up to six months’ imprisonment, a fine, or both upon conviction.

The court allowed bail at RM3,500 each with two local sureties, while 23 of the accused were separately charged in the Sessions Court with immigration offences committed at the same time, where they pleaded not guilty and were denied bail, with the case fixed for mention on May 25.

Malaysia RESET Medical & Health Insurance

Bank Negara Malaysia (BNM) is advancing a new base medical and health insurance/takaful (MHIT) plan under its RESET reform agenda, introducing the standardized product as part of broader efforts to manage private health financing pressures. 

The average cost of medical benefits worldwide is expected to rise by 10.3% next year, following increases of 10% in 2025 and 9.5% in 2024. Asia-Pacific is forecast to record the steepest regional increase at 14% in 2026, up from 13.2% in 2025 and 11.8% in 2024, ahead of Latin America, North America, Europe, and the Middle East and Africa. Within this environment, BNM is using RESET and the base MHIT plan to respond to affordability concerns, medical inflation, and coverage gaps in Malaysia’s private health insurance and takaful markets.

Focus on affordability, sustainability, and system linkages
Three main recurring themes: premium affordability, long-term sustainability, and the interaction between reforms in health delivery and insurance. 

RESET aims to simplify products and realign incentives
RESET is described as a multi-year program to simplify medical products, increase price transparency, and better align incentives across the healthcare financing chain. The initiative is intended to make private cover easier to understand and more predictable, while supporting its interaction with the public system.