REPUBLIKA.CO.ID, JAKARTA - Indonesian Life Insurance Association (AAJI) recorded growth of its members by 20.4 percent in 2012. The total revenue reached 133.15 trillion IDR and 80 percent of total revenue was contributed from premium income.

Premium income reached 107.73 trillion IDR or grew by 14.38 percent, driven by all lines of insurance distribution. Head of Actuarial and Research at AAJI, Maryoso said that agency distribution channel accounted for 38.3 percent of premium income, while bancassurance (partnership between bank and insurance company) accounted 40.4 percent of total premiums. 

"New business accounted for almost 70 percent of total premium income or grew by 11.28 percent at 75.01 trillion IDR," Maryoso said on Friday. Half of them were traditional insurance, while others were insurance-based investments (unit-linked).

AAJI noted an increase in individual policyholders up to 22.14 percent or 10.98 million people. The future of life insurance in Indonesia is still wide open. Strong economic growth which is combined with rising saving rates and the growing of middle class are good signs for life insurance growth.

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