PT BNI Life Insurance (BNI Life) recorded an increase in health claims by 38% in the first semester of 2020 compared to the same period the previous year. This surge in claims is in line with the trend of the life insurance industry which has experienced a significant increase in health claims.

To deal with this increase, Plt. President Director of BNI Life, Neny Asriany, revealed that the company has implemented various preventive strategies to reduce the level of claims. “We are refocusing the health insurance business, by being more selective in the selection of prospective customers and risk selection,” Neny told Bisnis on Monday (2/9/2024).

In addition, BNI Life is also strengthening the claims management process to maintain company stability. Neny hopes that the government and regulators, especially the Ministry of Health (Kemenkes), can take policy steps that regulate the health service ecosystem, including maintaining the stability of medical costs and reducing service disparities in hospitals.

The increase in BNI Life's health claims is in line with the trend in the life insurance industry as a whole. Data from the Indonesian Life Insurance Association (AAJI) shows that health claims in the life insurance industry in the first semester of 2020 reached Rp11.83 trillion, up 26% from Rp9.39 trillion in the same period the previous year.

Freddy Thamrin, Head of AAJI's Consumer Literacy & Protection Division, said that individual health claims increased by 29.3% to Rp7.62 trillion, while group health claims rose 20.3% to Rp4.21 trillion. “The ratio of health insurance claims to premium income reached 105.7%, signaling significant financial pressure for insurance companies,” Freddy explained in a presentation on Life Insurance Performance Semester I/2024 in Jakarta, Wednesday (28/8/2024).

Freddy also underlined that medical inflation which continues to increase is a big challenge for the life insurance industry. Nevertheless, the life insurance industry has prepared strategic steps to ensure that policyholders continue to get the best health services and according to their needs.

AAJI continues to coordinate with the Financial Services Authority (OJK), Ministry of Health, and health service providers such as hospitals to find solutions in managing health insurance claims. “This collaboration aims to create a sustainable balance between the insurance industry and the health sector,” Freddy added.

Meanwhile, overall, the life insurance industry paid out IDR77.67 trillion in claims in the first semester of 2020 to more than 9.82 million beneficiaries. Despite a decrease in surrender value claims and death claims by 13.5% and 5.1% respectively, health claims showed a significant increase of 26.0%.