OJK Analyzes Shift in Insurance Premium Preferences

Changing Consumer Behavior in Insurance Products

The Financial Services Authority (OJK) has conducted an analysis revealing the factors influencing the shift in consumer preferences from single premium insurance policies to regular premium insurance products. As of October 2025, the insurance industry recorded Rp 23.07 trillion in single premium income and Rp 14.26 trillion in regular premium income, with both categories demonstrating year-on-year growth.

Key Factors Driving the Shift

Ogi Prastomiyono, Head of Insurance, Guarantee, and Pension Fund Supervision at OJK, explained that the change in consumer behavior is not solely attributed to declining purchasing power. The OJK official highlighted that various factors are at play, suggesting a more complex dynamic in consumer decision-making regarding insurance products.

Market Implications

The shift towards regular premium insurance indicates a potential long-term trend in consumer preferences for more sustainable insurance products. This change may have significant implications for insurance providers, who may need to adjust their product offerings and marketing strategies to align with evolving consumer needs.

Regulatory Oversight

The OJK continues to monitor these developments closely, ensuring that insurance products remain aligned with consumer protection and financial stability objectives. The authority's analysis provides valuable insights into the evolving landscape of Indonesia's insurance industry.