Prudential Indonesia Targets Millennials and Gen Z in 2026 Insurance Strategy

Simplifying Insurance for Younger Generations

Prudential Indonesia is focusing on the Millennial and Gen Z segments for its 2026 business strategy, recognizing that these generations now make up 54% of the Indonesian population. According to Vikas Sinha, Vice President Director of Prudential Indonesia, this demographic presents significant opportunities despite currently having low insurance penetration.

Key Challenges in Younger Demographics

1. Financial Priorities: Multiple competing financial commitments such as mortgage payments, children's education, and being part of the 'sandwich generation'
2. Perception of Insurance: Products perceived as complex and expensive
3. Growing Financial Awareness: Younger generations understand the importance of financial planning but haven't adopted insurance as a long-term necessity

Strategic Response

Product Simplification

Prudential plans to introduce simpler, more affordable insurance products designed specifically for first-time buyers. The company aims to make insurance:

• Easier to understand
• More budget-friendly
• Better aligned with modern financial needs

Expanded Distribution

The insurer is targeting second-tier cities where insurance penetration remains low but potential is high. This expansion strategy includes:

• Developing innovative products
• Enhancing digital distribution channels
• Improving market accessibility

Financial Performance Context

As of October 2025, Prudential Indonesia reported:

• Premium income: Rp17.22 trillion, down 0.86% YoY
• Claims and benefits paid: Rp6.27 trillion, down 5% YoY
• Risk-Based Capital (RBC): Maintained at a healthy 411% level

Market Outlook

While there's growing interest in traditional insurance products due to changing lifestyle needs, Prudential remains committed to unit-linked insurance products that combine insurance and investment elements. The company sees these products continuing to meet the long-term financial planning needs of Indonesian consumers.