AXA Mandiri Faces Challenges in Promoting Unit-Linked Insurance Products

Low Financial Literacy Remains Key Obstacle

AXA Mandiri Financial Services has identified that the primary challenge in marketing unit-linked insurance products lies in the low level of public literacy regarding these financial instruments. The company's Head of Investment, Erika Marthalina, emphasized that the complexity of understanding the benefits, risks, and investment mechanisms associated with unit-linked products remains a significant barrier.

Positive Performance Despite Challenges

Despite these challenges, AXA Mandiri reported premium income from unit-linked products exceeding Rp3.2 trillion as of September 2025. This contributed to the company's total premium income of over Rp6.8 trillion during the same period. The company remains optimistic about the future prospects of unit-linked products, particularly for investors with an aggressive risk profile and long-term investment horizon.

Strategic Initiatives to Enhance Product Literacy

To address the literacy challenge, AXA Mandiri has been conducting customer gatherings in various cities in collaboration with Bank Mandiri. These events feature collaborations with global fund managers, industry associations, and credible public figures to ensure accurate and comprehensive information dissemination. The company believes that through these educational efforts, they can improve understanding and adoption of unit-linked products.

Market Outlook and Performance Trends

The performance of unit-linked products in the broader Indonesian insurance market has shown mixed signals. According to data from the Indonesian Life Insurance Association (AAJI), the premium income from unit-linked products contracted by 12.5% year-on-year to Rp49.24 trillion as of September 2025. This contraction follows a similar trend observed in previous years, indicating a challenging environment for these products.

Strategic Portfolio Management

AXA Mandiri maintains an active monitoring and strategic adjustment approach to its investment portfolio. The company remains cautiously optimistic about the performance of equity-based unit-linked products, noting the resilience of the Indonesian Composite Stock Price Index (IHSG) supported by strong domestic economic fundamentals, particularly in consumption, investment, and political stability.