The Indonesian Life Insurance Association noted that total revenue from life insurance in the third quarter (Q3) of 2018 slowed 15.5% to Rp149.87 trillion compared to the same period in 2017.

The slowdown in revenue growth caused the claim expenses rose faster than the premium income. Until September 2018, life insurance premium income recorded Rp140.94 trillion, or up by 1.2% from Q3 of 2017 (Rp139.27 trillion).

The premium growth was driven by a rise in new business premiums which grew 6.4% and continued business premiums which declined 6.8%. The premium income mostly came from agencies which contributed 39.7%.

Next came from alternative distribution channels, which contributed 18.3%. The remainder came from other channels. In terms of products, unit link still dominates the total premium income with a contribution of 58.4% and traditional products 41.6%.

The total life insurance investment in Q3 of 2018 worth of Rp457.55 trillion, flat from previous year, amid the volatile market conditions. Investment in the form of mutual funds remained the highest contributor at 33.3%. Investment from stocks followed closely with a contribution of 32.4% and an increase of 11.5% compared to the same period last year.

In terms of claims, life insurance paid and benefits valued Rp88.2 trillion in Q3 this year, rose 6.7% y/y.