JAKARTA (TimesofIDN) – Entering the second half of 2025, Indonesia’s insurance industry is grappling with significant structural challenges, including global uncertainties, inflationary pressures, declining public purchasing power, and a rising claims ratio in general insurance.
These conditions demand cautious and adaptive strategies from industry players.
Indonesia Financial Group (IFG), a state-owned holding company for insurance, guarantees, and investments under Danantara Indonesia, views the growth and sustainability of the national insurance industry as inseparable from its role in driving financial system stability.
IFG Corporate Secretary Denny S Adji emphasized that insurance serves as a critical risk protector, supporting the sustainability of productive sectors and providing social protection for the public.
“The insurance industry now plays a strategic role as a financial instrument to safeguard against risks. Integrated policies, adaptive oversight, and public literacy form the foundation of a cohesive ecosystem,” Denny said during a discussion titled Insurance Industry Outlook-Challenges and Opportunities in Jakarta, as reported by Media Indonesia on Wednesday (30/7).
Denny noted that opportunities for the insurance industry remain substantial through policy reforms, service digitalization, and stakeholder commitment to building a sustainable financial system. He stressed the need for a business approach centered on governance, innovation, and integration to navigate external and domestic pressures.
He further highlighted the strategic role of the insurance and pension fund industries as investors in the national financial market, holding approximately 19% of Government Securities (SBN). About 63% of investment assets are allocated to bonds, with the remainder spread across stocks, deposits, and mutual funds.
The discussion was attended by IFG Progress researchers, including Ibrahim Kholilul Rohman, Mohammad Alvin Prabowosunu, and Rosi Melati, who addressed economic outlooks, the performance of life and general insurance, and macroeconomic challenges facing the industry.
“We hope this event fosters a more constructive perception of the national insurance industry,” Denny said, underscoring that insurance is not merely a protective tool but a vital component of sustainable economic development.
IFG Progress researcher Rosi Melati added that there is significant potential to expand insurance market penetration among young people under 30. A survey conducted by IFG Progress and the Institute for Economic and Social Research at Universitas Indonesia (LPEM UI) revealed that 53% of respondents expressed interest in purchasing insurance products in the future.
“Respondents under 30 years old showed a stronger inclination to acquire insurance products sooner,” Rosi concluded.
