Half a year, claims and benefits paid by life insurance shrink 12.5%
ILLUSTRATION. Insurance illustration
Reporter: Umi Kulsum | Editor: Barratut Taqiyyah Rafie
KONTAN.CO.ID – JAKARTA. The trend of increasing life insurance claims and benefits that occurred at the beginning of the year seems to have started to improve in the middle of this year. The decline also reached two digits.
Referring to data from the Financial Services Authority (OJK), as of June 2018, the claims and benefits paid by industry players amounted to IDR 38.41 trillion. This figure has decreased by 12.5% compared to the same period in 2017 of IDR 43.93 trillion. On the other hand, the premium income earned by life insurers reached Rp 95.47 trillion or grew 29.4% year on year (yoy) amounting to Rp 73.79 trillion.
Chairman of the Indonesian Life Insurance Association (AAJI) Hendrisman Rahim said payment of claims and benefits is the commitment of every company to provide services to customers. According to him, the decline that occurred was something that was still relatively reasonable.
Several types of life insurance claims include claims maturity, risk claims and cash value claims. For risk claims, according to Hendrisman, this cannot be predicted. Sometimes, a period can experience an increase, it could also be when a certain period also decreases like this time.
“Claims have become part of our business. The rise and fall of claims really depends on the policy itself,” Hendrisman told Kontan.co.id, Thursday (16/8).
It could be, he continued, that in the mid-year period, the policies that were due were still not too many. Even so with risk claims. Meanwhile, unit-linked products are actually related to capital market conditions.
If the capital market is excited, customers prefer to hold the product for the long term. Meanwhile, when the market is volatile, it will trigger customers to immediately take advantage of this investment-based insurance product.
“The current decline cannot be used as a benchmark, it could be that in the future period it will increase again. Indeed, the trend is like that,” said Hendrisman.
PT Sun Life Financial Indonesia also decreased claims. As of June 2018, referring to the company’s financial statements, claims and benefits paid were IDR 189.69 billion. Meanwhile, until the second quarter of 2017, the nominal value was higher at Rp. 620.06 billion. This means that there is a significant decrease of 69.41%.
Different conditions occur in PT Capital Life Indonesia. Claims and benefits paid by Capital Life increased 10% to Rp 1.2 trillion in the first six months.
Capital Life Business Director Robin Winata explained, the increase in the number of claims was due to an increase in production due on customer policies.
“Meanwhile, there are relatively few death claims, namely Rp. 5.1 billion as of June 2018,” said Robin.
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