Medical expenses and gaps in public healthcare are driving demand for additional private coverage.
Indonesia’s health insurance market is expected to grow faster than life and general insurance over the next decade.
In its Global Insurance Report 2026, released on 28 May, Allianz Research projected that health insurance premiums in Indonesia would grow by an average of 12.9% annually from 2026 to 2036, reaching $6b (EUR5.4b) by the end of the period.
The forecast is higher than the 7.9% annual growth expected for life insurance and 7.3% for property and casualty (P&C) insurance, which covers risks such as vehicle damage, property losses and liability claims.
By 2036, life insurance premiums are projected to reach $20.9b (EUR18.8b), whilst P&C premiums are expected to total $14.8b (EUR13.3b).
In 2025, Indonesia’s insurance market recorded total premiums of $17.6b (EUR15.8b), comprising $9.1b (EUR8.2b) in life insurance, $6.9b (EUR6.2b) in P&C insurance, and $1.6b (EUR1.4b) in health insurance.
Despite these figures, insurance coverage remains limited. Total insurance premiums accounted for just 1.3% of Indonesia’s gross domestic product (GDP) in 2025, according to the report.
Life insurance accounted for 0.7% of GDP, followed by P&C insurance at 0.5% and health insurance at 0.1%.
Average insurance spending per person stood at $61 (EUR55) in 2025, comprising $32 (EUR29) for life insurance, $24 (EUR22) for P&C insurance, and $6 (EUR5) for health insurance.
Over the previous decade, from 2015 to 2025, Indonesia’s health insurance premiums grew by an average of 13.1% annually, compared with 8% for P&C insurance and 3.7% for life insurance.
Allianz attributed the growth in private health insurance across Asian markets, including Indonesia, to rising medical costs and demand for coverage beyond what public healthcare systems provide.
($1.00 = EUR0.90)