Life Insurance Industry Revenue Soars 13,591 Percent in First Quarter 2021

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ITI190 – Life Insurance Industry Revenue Soars 13,591 Percent in First Quarter 2021.

The Indonesian Life Insurance Association (AAJI) reported that the total income of the life insurance industry in the first quarter of 2021 reached Rp 62.66 trillion. The number shot up to 13,591.6 percent of revenue in the first quarter of the previous year.

Chairman of the AAJI Management Board, Budi Tampubolon, said that this positive growth was a sign of a rebound for the life insurance industry players in early 2021. Previously, total revenue was recorded at minus 0.46 trillion in the first quarter of 2020.

“Total revenue grew by 13,591.6 percent compared to the first quarter of 2020. This was due to a 105.1 percent growth in investment income in the first quarter of 2021,” Budi explained in a teleconference session, Tuesday (8/6/2021).
According to his explanation, the investment returns of insurance industry players reached Rp 2.44 trillion in the first quarter of 2021, improving compared to the same period the previous year, which recorded minus Rp 47.8 trillion.

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In addition, total life insurance premium income also grew by 28.5 percent compared to the previous year to Rp 57.45 trillion in the first quarter of this year.

“This growth was due to the growth in total premiums for new and continued business. Each new premium grew by 42.3 percent and advanced premiums by 9.3 percent on an annual basis,” explained Budi.

New Premium

Budi noted that the total new business premiums reached Rp 37.04 trillion in the first quarter of 2021, from the previous Rp 26.03 trillion in the same period the previous year. Then the total advanced premium also grew positively to Rp 20.41 trillion from Rp 18.68 trillion in the first quarter of 2020.

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Meanwhile, reinsurance claims also recorded a slight growth of 3.6 percent to Rp 1.55 trillion in January-March 2021. Budi explained that this achievement was obtained thanks to the commitment of the life insurance industry players in supporting the handling of the pandemic through the payment of Covid-19 claims.

“The total benefits of Covid-19 claims that have been paid are recorded at around Rp. 1.5 trillion from nearly 25 thousand policies from March 2020 to February 2021,” he said.

Life Insurance Industry Revenue Soars 13,591 Percent in First Quarter 2021 by ITI190 – Insurance Top Info 190.