Prudential Indonesia Sees Shift in Customer Preferences Towards Traditional Insurance Products

Premium Income Dominated by Individual Insurance

Prudential Indonesia has reported that individual insurance continues to dominate its premium income, accounting for 98% of total premiums in the first nine months of 2025. The company recorded a total premium income of Rp15.2 trillion, with Rp14.9 trillion coming from individual insurance policies. According to Vikas Sinha, Vice President Director of Prudential Indonesia, there has been a noticeable shift in customer demand towards traditional insurance products.

Drivers of Demand Shift

The shift towards traditional products is attributed to their simplicity and affordability. Vikas explained that customers, especially those new to insurance, prefer products that are easy to understand. Prudential believes that product innovation with simple designs and affordable premiums is crucial for enhancing customer understanding and satisfaction.

Group Insurance Performance

Despite the focus on individual insurance, Prudential Indonesia's group insurance segment performed well, with premiums growing by 116% to Rp317 billion in the first nine months of 2025. Vikas noted that companies are increasingly recognizing the importance of health insurance as part of employee benefits, with some even extending coverage to employees' families. This trend indicates a growing awareness among businesses about the need for comprehensive health protection for their workforce.

Industry Outlook

Insurance expert Dedy Kristianto shared his perspective on the group insurance market, predicting a positive outlook for the next 2-3 years. He identified several factors supporting this optimism: growing corporate awareness of employee benefits, regulatory compliance requirements, the shift towards critical and chronic diseases, and advancements in digital transformation that improve policy management and claims processing. However, he also cautioned about challenges such as cost pressures from clients, medical inflation, and changing workforce dynamics.

Strategic Implications

To navigate these challenges, insurance companies will need to focus on product innovation, digital integration, and robust risk management. By addressing these areas, insurers can maintain market competitiveness and capitalize on growth opportunities in both individual and group insurance segments.