Indonesian Life Insurance Premium Continues Three-Month Contraction

Industry Performance Overview

The Indonesian life insurance sector recorded a premium income of Rp132.85 trillion as of September 2025, representing a 2.06% year-on-year decline. This contraction marks the third consecutive month of negative growth, following declines in July (0.84%) and August (1.21%). The Financial Services Authority (OJK) reported these figures during their October 2025 press conference.

Key Industry Metrics

Despite the premium contraction, the life insurance industry maintains a robust Risk-Based Capital (RBC) ratio of 481.94%, significantly exceeding the minimum regulatory requirement of 120%. This indicates strong financial health and solvency within the sector. The commercial insurance industry, which includes life insurance, recorded total claims of Rp159.82 trillion, representing a 4.93% year-on-year decrease.

Market Structure and Compliance

The total assets of commercial insurance companies reached Rp958.54 trillion, showing a 3.91% year-on-year growth. As of September 2025, 77.78% (112 out of 144) of insurance and reinsurance companies had met the minimum equity requirement that will become mandatory in 2026. This leaves 32 companies still needing to comply with the upcoming regulatory threshold.