Indonesian insurance industry shows mixed H1 2026 performance

The Indonesian insurance sector showed mixed performance in the first half of 2026. The life insurance industry, represented by the Indonesian Life Insurance Association (AAJI), reported premium income of Rp 94.75 trillion, an 8.2% year-on-year increase. AAJI remains optimistic about maintaining this growth trend through the end of the year, focusing on digital technology to expand penetration into middle-to-lower income segments.

In the general insurance sector, the Indonesian General Insurance Association (AAUI) reported that total premiums reached Rp 58.19 trillion, a slight contraction of 0.5%. Within this sector, marine cargo premiums grew by 4.4% to Rp 2.89 trillion, largely driven by domestic trade. However, credit insurance faced challenges as the claim ratio surged to 99.6%, up from 82.1% in the same period last year, partly due to claims from previous periods.

AAUI also highlighted a significant protection gap in Indonesia, noting that many assets in disaster-prone areas, including government buildings, remain uninsured. The association is calling for government intervention through mandatory insurance to mitigate economic risks from natural disasters.