KONTAN.CO.ID - JAKARTA. In the midst of the ongoing COVID-19 pandemic, the life insurance business in Indonesia can still grow until the end of 2021. This is because the COVID-19 pandemic has actually increased public awareness of the importance of insurance products.
If you look at the data from the Indonesian Life Insurance Association (AAJI), the premium income of the life insurance industry in Indonesia in the first quarter of 2021 actually still grew by 28.5 percent to Rp 57.45 trillion. However, the total claims paid in the first quarter of 2021 also rose 23.54 percent to Rp 47.69 trillion.
One claim that has an increasing trend is claims related to Covid-19. AAJI noted that claims related to Covid-19 reached Rp 1.46 trillion. This number still has the potential to increase, considering the number of Covid-19 cases is currently also increasing.
"This shows that the life insurance industry is a liquid industry," said AAJI Chairman Budi Tampubolon during a virtual webinar, Tuesday (6/7).
Budi also said that the life insurance business until the end of the year still has room to grow. It's just that, to develop the business, you can't use old methods like before the pandemic.
“Although there is still uncertainty, we continue to maintain optimism because room for growth remains open. However, innovation and creativity are needed, but we also urge all AAJI members to fulfill their promises and commitments to customers," added Budi.
One of the life insurance companies, BNI Life, also continues to commit to paying claims, especially those related to COVID-19, considering the increasing number of cases. Until last May, this subsidiary of Bank BNI had paid claims related to COVID-19 of Rp 177 billion.
"We are well aware that many people rely on insurance in the midst of a pandemic that has not improved. So far, claims payments to customers have continued to be carried out properly in accordance with applicable regulations and BNI Life will continue to consistently provide optimal protection under current conditions," said BNI Life's Business Director to Kontan.co.id, Tuesday (6/7).
Last May, the company recorded premium growth of up to Rp 1.74 trillion. That means there is a growth of 11.3% compared to the same period last year which was only recorded at Rp. 1.57 trillion.
Even though it is still growing, Neny admits that there has been a revision of the premium income target by the end of this year which has been submitted to the OJK. Previously, the company targeted premium income to reach Rp 5 trillion, but it was finally revised to Rp 4.38 trillion.
“It is undeniable that face-to-face restrictions also affect sales of BNI Life insurance products. BNI Life has made adjustments to its business processes to be able to adapt to current conditions," said Neny.
Premium growth was also experienced by BRI Life which until last May recorded Rp 2.8 trillion, which means there was an increase of 12% yoy. In addition, the company has also paid COVID-19 claims of Rp 17 billion throughout 2021.
"The number of COVID-19 claims is not large because most of them are still borne by the government and are not covered by the policy. For 2021, most health insurance policies have included coverage for Covid with certain claim criteria," said BRI Life President Director Iwan Pasila, Tuesday (6/7).
Unlike BNI Life, Iwan said that his party did not revise its premium income target until the end of this year. However, he was reluctant to mention the current target for BRI Life's premium income.
"We do not publish the premium target, but we want to grow compared to last year, although we are careful to pay attention to economic conditions," concluded Iwan.
Read more: https://keuangan.kontan.co.id/news/meski-klaim-meningkat-bisnis-asuransi-jiwa-masih-berpeluang-tumbuh
