PT BNI Life Insurance, also known as BNI Life, mentioned that traditional insurance products still dominate the company’s premium income compared to unit-linked products. As of July 2024, the premium income from BNI Life’s unit-linked products amounted to Rp 680 billion, making up approximately 22.4% of the total premium income.

"Premium income from traditional products amounted to Rp 2.4 trillion, accounting for around 77.6%," said BNI Life's Acting CEO, Neny Asriany, to Kontan.co.id on Wednesday (August 21).

Neny stated that BNI Life’s total premium income was Rp 3.04 trillion up to July 2024. She explained that the larger share of traditional products compared to unit-linked ones was due to the company's strategy, which focuses more on selling traditional products, especially following adjustments to Investment-Linked Insurance Products (PAYDI) in line with SEOJK 05 regulations issued in 2023.

According to current trends, Neny explained that the younger generation tends to prefer traditional insurance products because they are simpler and easier to understand. She noted that these products can also be purchased directly through digital platforms with a straightforward process and affordable premiums.

"Thus, it is more suitable for the younger demographic," she added.

According to Neny, the advantage of both traditional and unit-linked insurance products for young people is that the younger they purchase an insurance product, the cheaper the insurance costs they pay for the same coverage amount. She said that risk selection is also easier for young people compared to older age groups.

Neny mentioned that the challenge with unit-linked products lies in their more complex selling process compared to traditional products, especially when targeting the younger generation.

However, with the new, more detailed regulations in SEOJK 05 of 2023, Neny is optimistic that unit-linked products will still be favored by younger individuals or young families. One reason is that the product offers attractive features for those who want to combine protection and investment into one product for long-term coverage.