REPUBLIKA.CO.ID, JAKARTA -- Life insurance industry planned to grow asset up to Rp500 trillion in 2015.

Chairman of the Indonesian Life Insurance Association (AAJI), Hendrisman Rahim said on the second quarter of 2013, total assets of the life insurance industry in the country reached Rp281.20 trillion, up 37.65 percent from the second quarter of 2012 to Rp204.28 trillion.

"We are also targeting the increase number of agents to 500 thousand agents in 2015 from current a total of 283 thousand agents," said Hendrisman, Wednesday (20/11). 

Indonesia, according to him, included in the three countries with the lowest insurance industry penetration in Asia by 1.1 percent, followed by the Philippines 0.8 percent, and Vietnam 0.7 percent. While the three countries in Asia with the largest insurance penetration, namely Hong Kong 10.1 percent, Japan 8.8 percent and South Korea's 7 percent. 

Hendrisman said the second quarter of 2013, total insured individual on life insurance reached 12.79, up 29.38 percent from the same period last year as many as 9.88 million people. While the total insured group reached 74.40 million. 

Total premium income in the second quarter of this year reached Rp57.59 trillion, up 14.48 percent from Rp50.31 trillion quarter of 2012. Total claims in the same period reached Rp35.37 trillion, up 21.81 percent from Rp29.04 trillion.

Hendrisman call the life insurance industry should not have to worry about the political situation due to the upcoming 2014 Presidential Election.

"The growth of life insurance in 2014 is estimated to reach 20 to 30 percent," he said. The figure was higher than growth prediction until the end of 2013 that 15 to 20 percent. 

Chief Executive of the Supervision of Financial Industry of Non Bank (IKNB) Financial Services Authority (FSA/OJK), Firdaus Djaelani said the insurance industry; particularly the life insurance would face several challenges in 2014. Life insurance industry should be careful on making decisions to invest in the stock market following the increase in interest rates by Bank Indonesia (BI). It's because life insurance investment portfolio in the stock market predicted to reach 80 percent. If they were not prudent in investments, it's feared to have a negative impact on the company. 

Ed: Nidia Zuraya

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