Life Insurance Agent Numbers Rise While Premium Income Declines: Analysis

Growing Agent Base vs. Falling Premiums

The Financial Services Authority (OJK) reported that the number of life insurance agents in Indonesia reached 233,998 by November 2025, representing a 14% increase from June 2025. However, data from the Indonesian Life Insurance Association (AAJI) revealed a contrasting trend - premium income generated through these agents declined by 1.7% year-over-year.

Expert Analysis on Productivity Issues

Irvan Rahardjo, an insurance expert, suggests that the divergence between agent numbers and premium income can be attributed to persistent issues of mis-selling and misconduct among life insurance agents. These problems have led to ongoing consumer distrust, affecting the overall productivity of the agent channel. The situation remains unresolved, with cases pending at both mediation and litigation levels.

Market Implications

This development highlights significant challenges within Indonesia's life insurance distribution channel. Despite the growing number of agents, the industry faces hurdles in maintaining productivity and consumer confidence. The trend underscores the need for more effective regulatory oversight and industry self-regulation to address these persistent issues and restore market trust.