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The Indonesian Life Insurance Association (AAJI) recorded a
70 percent increase in total premium income for the country's insurance
companies to Rp 32.4 trillion (about US$3.4 billion) during the first
nine months this year from Rp 18.9 trillion last year.
Of the total income, Rp 13.75 trillion was collected from individual
customers, Rp 6.7 trillion from collective customers, Rp 11.4 trillion
from unit-linked customers and Rp 465 billion from annuity customers.
General affairs director Evelina F. Pietruschka said last week that
total premium income was expected to reach Rp 40 trillion this year.
"I am very positive the insurance companies can achieve the expected
growth for this year because the upward trend in all the insurance
products is continuing," she said.
Executive director Edy KA. Berutu said total new premium income during
the first nine months increased by 109 percent to Rp 22.6 trillion,
representing 69.7 percent of the total premium income, from Rp 10.8
trillion in the same period last year.
The unit-linked products alone, which combine investment and insurance
protection, rose by 300 percent from Rp 2.9 trillion to Rp 11.4
trillion, representing 35 percent of the total premium income during
the first nine months.
"All in all, the significant growth in the life insurance business
resulted from people's growing awareness about the importance of life
insurance, the improved macroeconomic conditions, the creative and
innovative products, and the improvement in the sales distribution
system," he said.
Besides the growth in premium revenue, the industry also reported a 62
percent increase in non-premium income to Rp 6.6 trillion in the third
quarter from Rp 4.1 trillion in the first nine months last year.
Total revenues, both from premium and non-premium income, grew by about
70 percent to Rp 39.9 trillion from January to September from Rp 23.4
trillion in the same period of 2006.
Edy explained that the industry saw 49 percent growth in total
investment, rising to Rp 81.4 trillion in the first nine months from Rp
54.6 trillion in the same period last year.
Evelina said total investment was expected to reach Rp 100 trillion
this year.
He said total claim payments increased by 31.7 percent to Rp 14.1
trillion in the first nine months from Rp 10.7 trillion in the same
period last year.
The association's figures were based on reports from 39 life insurance
companies, consisting of one state-owned company, 23 private firms and
15 joint ventures.
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