Indonesian Life Insurance Industry Faces Mixed Prospects for Unitlink Products

Regulatory Strengthening Amidst Premium Contraction

The Indonesian life insurance sector is experiencing mixed signals in its unitlink product segment. While premium income from these investment-linked insurance products contracted by 12.5% year-on-year to Rp 49.24 trillion by the third quarter of 2025 ²

, industry stakeholders remain optimistic about future prospects. The Indonesian Life Insurance Association (AAJI) attributes this optimism to strengthened regulations, enhanced transparency, and growing public understanding of long-term life insurance products ¹

Source 1

https://keuangan.kontan.co.id/news/unitlink-masih-punya-peluang-tumbuh-ini-strategi-industri-asuransi-jiwa

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Industry Performance Analysis

The contraction in unitlink premiums to Rp 49.24 trillion in Q3-2025 represents a significant decline from Rp 56.31 trillion in the same period the previous year ²

. However, AAJI Executive Director Emira Oepangat suggests that the industry performance should be viewed in a broader context, considering the continued growth in policy numbers and insured individuals, as well as changes in premium payment patterns within the life insurance industry ²

Source 2

https://keuangan.kontan.co.id/news/pendapatan-premi-unitlink-masih-terkontraksi-begini-penjelasan-aaji

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Regulatory Impact and Future Outlook

The industry's optimism is largely driven by recent regulatory developments that emphasize policyholder protection and product suitability with risk profiles ¹

. These regulatory changes are expected to strengthen consumer confidence in unitlink products, potentially reversing the current contraction in premium income. The industry is navigating through these changes while maintaining its growth trajectory in terms of policy coverage.