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Payment of claims and life insurance benefits is predicted to grow 20%

ILLUSTRATION. Sequis Service Center Customer

Reporter: Ferrika Sari | Editor: Sanny Cicilia

KONTAN.CO.ID – JAKARTA. The Indonesian Life Insurance Association (AAJI) estimates that claim payments and use of life insurance will grow significantly until the end of 2018.

Head of Finance, Membership and Compliance of AAJI, Edy Tuhirman, said that the growth in claims and benefits could reach 20% compared to last year.

Referring to AAJI’s power, the payment of claims and installment benefits recorded brilliant performance throughout the first quarter of 2018. Payment of claims and benefits reached Rp 34.51 trillion, or an increase of 43.5% from last year.

“This amount is dominated by the payment of claims for the value of the redemption or surrender amounting to 60.3% of the total claims or worth IDR 20.80 trillion. This is due to the high people’s need for cash, ”said Edy to Kontan.co.id, Thursday (7/6).

The increase in claims and benefits payments is in line with premium income growth, which rose 23.3% compared to the first quarter of last year. The bancassurance distribution channel contributed significantly to the premium income of the life insurance industry, which increased by 46.4%.

“The data shows that the increase in total premium income is directly proportional to the increase in claim and benefit payments,” he said.

Thus, the increase in claim payments and insurance benefits shows that the life insurance industry is committed to completing obligations to customers. Appropriate and timely claim payments are capital for the life insurance industry to increase public trust.

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