JAKARTA (TheInsiderStories) – The Indonesian Life Insurance Association noted that total revenue from life insurance in the third quarter (3Q) of 2018 slowed 15.5 percent to Rp149.87 trillion (US$10.33 billion) compared to the same period in 2017.
Based on the official statement released today (12/07), the slowdown in revenue growth caused the claim expenses rose faster than the premium income. Until September 2018, life insurance premium income recorded Rp140.94 trillion, or up by 1.2 percent from 3Q of 2017 of Rp139.27 trillion.
The premium growth was driven by a rise in new business premiums which grew 6.4 percent and continued business premiums which declined 6.8 percent. The premium income mostly came from agencies which contributed 39.7 percent.
Next came from alternative distribution channels, which contributed 18.3 percent. The remainder came from other channels. In terms of products, unit link still dominates the total premium income with a contribution of 58.4 percent and traditional products 41.6 percent.
The total life insurance investment in the 3Q of 2018 worth of Rp 457.55 trillion, almost grew flat from 3Q 2017, amird the volatile market conditions. Investment in the form of mutual funds remained the highest contributor at 33.3 percent.
Investment from stocks followed closely with a contribution of 32.4 percent and an increase of 11.5 percent compared to the same period last year.
In terms of claims, in the 3Q of 2018, life insurance paid and benefits valued Rp 88.2 trillion, rose 6.7 percent in annually basis. The highest increase in claims occurred in contract final claims which contributed 15.5 percent and increased 58.2 percent compared to the 3Q of 2017.
The second largest increase in claims occurred in medical claims which increased by 3.2 percent to Rp7.05 trillion. Furthermore, the total life insurance insured in the 3Q of 2018 slowed 10.5 percent to 54.36 million people.
The slowdown occurred because of a decrease in the number of insured people by 14.7 percent and a decrease in the number of insured individuals by 0.5 percent.
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