Indonesia’s General Insurance Sector Sees Growth in Digital Channels, Still Lagging Traditional Methods

Jakarta – The Indonesian general insurance industry is experiencing a positive trend in the adoption of digital channels for product distribution, aligning with the broader growth of Indonesia’s digital economy. However, despite this progress, digital channels still represent a relatively slight portion of overall premium contributions.

E-commerce Fuels Digital Growth

Indonesia’s e-commerce transaction value reached approximately IDR 487 trillion in 2024, a significant increase from previous years, indicating robust digital trade activity within the country Asosiasi Asuransi Umum Indonesia (AAUI).

Digital Contribution Remains Limited

Despite the growth in digital commerce, the contribution of digital channels to insurance premiums remains modest. Data from the Financial Services Authority (OJK) through September 2025 showed that premiums from digital channels accounted for 2.87% of the total. AAUI estimates the current contribution to be around 7% of total premiums.

“The portion is still relatively small compared to traditional distribution channels such as agents, brokers and bancassurance,” stated Budi Herawan, Chairman of AAUI AAUI.

Future Potential and Embedded Insurance

AAUI remains optimistic about the future potential of digital channels, citing increasing digital literacy and the expanding digital economic ecosystem as key drivers. The organization views digital channels as a transformative force in insurance product distribution, particularly through the development of embedded insurance – protection directly integrated with transaction activities on digital platforms.

AAUI Leadership

Budi Herawan has been serving as the Chairman of AAUI since 2023 AAUI.