Indonesia's Health Insurance Premiums Expected to Continue Rising

Growing Healthcare Costs Drive Premium Increase

Health insurance premiums in Indonesia's life insurance sector are projected to maintain their upward trajectory, driven by two primary factors: increasing healthcare costs and growing public awareness of health risks. According to Abitani Taim, Chairman of the School of Risk Management and Insurance (STIMRA), health insurance premiums contribute significantly to the life insurance industry, accounting for nearly 20% of total life insurance premiums.

Key Statistics and Industry Performance

The Financial Services Authority (OJK) reported that health insurance premiums reached Rp26.29 trillion, representing 19.79% of total life insurance premiums. Claims in the health insurance line stood at Rp17.54 trillion, or 15.89% of total life insurance claims. Despite the robust performance, Ogi Prastomiyono, Head of OJK's PPDP, noted that the economic slowdown in Q3 2025 could potentially dampen premium growth across both general and life insurance segments.

Challenges and Recommendations

Industry experts emphasize that medical inflation remains a significant challenge for insurers. To address this, Abitani recommends that insurance companies regularly review claims and adjust premiums accordingly. He also suggests that insurers collaborate with medical advisors to assess claims and medical procedures, ensuring that only necessary treatments are covered. Furthermore, Ogi Prastomiyono advises the industry to focus on product diversification, service digitalization, and regulatory compliance to create a more resilient and sustainable insurance market.

Future Outlook

As the industry moves forward, maintaining a balance between premium growth and medical inflation will be crucial. Insurers will need to adopt proactive strategies to manage risks while meeting the growing demand for health insurance products.