Indonesian Health Insurance Market Shows Resilience Amid Challenges

Premium Growth and Claims Trends

The Indonesian health insurance sector demonstrated robust growth in Q3 2025, with premiums rising by 15.1% year-on-year to Rp8.04 trillion, according to the Indonesian General Insurance Association (AAUI) ¹

. This growth was accompanied by a significant increase in claims payments, which surged by 24.9% to Rp6.38 trillion. The faster growth in claims compared to premiums highlights the impact of rising medical inflation on the industry.

Industry Response to Rising Claims

Industry players are responding to the challenges by adjusting their pricing strategies and policy terms. AAUI's Vice Chair for Statistics and Research, Trinita Situmeang, noted that companies are expected to implement various risk mitigation measures. The industry is also seeing improved awareness among insurers about the need to manage loss ratios, which have historically been high at over 148% ¹

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Market Structure and Future Outlook

The health insurance segment is dominated by a relatively small group of players, with only 32 companies offering health insurance products within the general insurance industry. Despite the challenges, industry leaders are optimistic about future growth, driven by increasing healthcare needs and continued product innovation. The consistent growth in health insurance premiums since 2021 demonstrates the sector's resilience and potential for further development ¹

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Broader Industry Context

The overall general insurance industry recorded total premiums of Rp84.72 trillion up to Q3 2025, with health insurance being one of the key contributors ²

. The industry faces ongoing challenges related to medical inflation, including variability in medical costs across different healthcare providers and inconsistent pricing of pharmaceuticals. Despite these challenges, the growth in health insurance premiums indicates a positive outlook for the sector.