Indonesia: Life insurance premiums fall by 10% in 1H
Life insurance premiums fell by 10.3% in the first six months of this year to IDR85.65tn ($6bn), according to data from the Financial Services Authority (OJK).
OJK chairman Wimboh Santoso said the decline was due to the insurance industry undergoing restructuring.
Mr Riswinandi, executive head of Non-Bank Financial Institutions Supervision at the OJK, said, "We are reviewing life insurance products that we know provide for a guaranteed return.” The OJK has asked several insurance companies to stop selling products with guaranteed yields, according to local media reports.
Mr Riswinandi added the total premiums collected in the general insurance sector in the first six months of this year amounted to IDR50.93tn. The reinsurance industry contributed premiums of IDR10.79tn, up 14%.