Life insurance industry in 2014 grossed a total revenue of Rp 167.76 trillion, an increase of 33.3 percent from 2013 to Rp 125.82 trillion. Indonesian Life Insurance Association (AAJI) said revenue is derived from the total premium income, investment, reinsurance claims and other revenues.
Chairman, AAJI, Hendrisman Rahim said the growth was driven by growth in total premium income by 6.7 percent or Rp 121.62 trillion.
"The growth in total premium income in the fourth quarter of 2014, was the highest during the year 2014," said Hendrisman in a press conference on the performance of the life insurance industry Q4 2014, in his office, Jakarta, Thursday (03/19/2015).
Moreover, according to him, the revenue growth was supported also by an increase in return on investment of 458.2 per cent to be worth more than Rp 40.84 trillion at the end of 2014. Then, AAJI also assess customers' understanding of the importance of maintaining long-term protection of life insurance , This is evidenced by the continued increase in total premiums.
"Reflected of total premiums increased further by 22.2 percent to Rp 51.59 trillion," said Hendrisman.
According to the Head of the Department of Communication AAJI, Nini Sumohandoyo continued increase in total premiums showed an increase in public awareness of the importance of life insurance. "The total number of premium continued, showing the community has been aware of the importance of insurance, especially life insurance," said Nini in the same event.
However, in 2014 there were 2 slowdown, first is total new business premiums slowed down around 2.4 percent or Rp 70.04 trillion. Smaller Rp 1.69 trillion in 2013 from Rp 71.73 trillion. Then the second slowdown occurred in total insured collection, which in 2014 decreased by 48.7 percent.
Hendrisman said the decrease was caused by the travel insurance product (travel insurance) is on its way unfavorable.
"There used to be three companies whose products many to travel insurance, eg 1 week to Hong Kong, so the high turnover, but on the premiums are not profitable. So in stop mid this year, bringing the total premiums declined. Until the end of 2015 will be affected in our reports , "