The life insurance industry claims and benefits slowed 3.4% in September
ILLUSTRATION. Cleaners clean the logos of life insurance companies at the Jakarta Life Insurance Association (AAJI) office, Tuesday (27/10).
Reporter: Maizal Walfajri | Editor: Yudho Winarto
KONTAN.CO.ID – JAKARTA. As a form of the life insurance industry’s commitment to customers, the life insurance industry consistently pays claims and benefits to its customers.
The Indonesian Life Insurance Association (AAJI) noted that total claims and benefits paid slowed down by 3.4% yoy from IDR 113.52 trillion to IDR 109.61 trillion by September 2020.
The biggest slowdown occurred in claims for contract end benefits, which contracted 36.9% yoy from Rp 18.52 trillion to Rp 11.68 trillion in the third quarter of 2020. Likewise, partial withdrawal claims also fell 18.5% yoy from Rp 12.65 trillion. to IDR 10.31 trillion.
Meanwhile, AAJI saw an increase in claim payments for death claims by 17.4% yoy from IDR 7.49 trillion to IDR 8.80 trillion during the first nine months of 2020. Meanwhile, the surrender value increased by 9% from IDR 61 , 90 trillion yoy Rp. 67.45 trillion.
AAJI’s Head of Finance, Tax and Investment, Simon Imanto, explained that the increase in surrendered policies was driven by the large number of people who needed cash for their daily needs, especially in the midst of the current uncertain economic conditions.
Also Read: BNI Life recorded a decrease in claims and benefits of up to 41.28%
“Therefore, as part of our education to consumers about financial management, we advise the public that if you need funds, you should not claim surrender policies, but only claim partial withdrawals in order to keep getting funds for life and insurance. keep running, so customers still get insurance protection and manage finances, “he explained virtually, Wednesday (16/12).
He continued, both individual and group health claims experienced a slowdown in the third quarter of 2020. Individual health claims slowed down 7.7% yoy from Rp 3.63 trillion to Rp 3.35 trillion. The collection of health claims recorded a slowdown of 5.3% yoy from IDR 4.55 trillion to IDR 4.31 trillion in the third quarter of 2020.
“The life insurance industry continues to carry out its commitment to payment of claims and benefits despite a slowdown in premiums, where the payment of claims itself shows an increasing trend from the second quarter of 2020 to the third quarter of 2020, which shows the financial stability of the life industry despite the slowdown in the life insurance industry due to the Covid pandemic. -19, “he added.
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