IFG Life pushes early insurance ownership to lift uptake

Many Indonesians do not see insurance as a priority.

IFG Life has rolled out a strategy to persuade Indonesians, especially younger consumers, to buy insurance earlier, as the country struggles with low penetration despite rising awareness.

The approach includes streamlining claims, stressing the affordability of early coverage, and boosting financial literacy to bridge the gap between interest and action.

Insurance penetration in Indonesia stood at just 1.4% in February, according to IFG’s Progress report. Whilst awareness is higher than in previous years, IFG Life said the challenge is turning that awareness into concrete steps.

“Many Indonesians are aware of insurance but do not see it as a current priority,” Fabiola Noralita, director of individual business at IFG Life, told Insurance Asia. “Our focus is to turn interest into action as soon as possible.”

The report also found that 53% of uninsured respondents are interested in buying a policy, yet 40% plan to purchase only after five years or more. The delay, IFG said, reflects low urgency, compounded by limited financial literacy.

A 2025 survey by Indonesia’s Financial Services Authority and local statistics agency found insurance literacy in the Southeast Asian nation at 45%, compared with a global average of 60%–70%.

To address this, IFG Life has embedded literacy initiatives into its corporate social responsibility agenda.

Programs cover topics such as financial planning, product introduction, risk management, and taxation. Target groups this year include students, housewives, micro-business owners, and hearing-impaired ride-hailing drivers.

The insurer runs these sessions in partnership with units such as Mandiri Inhealth, state-owned peers Jasa Raharja and Jamkrindo, and several universities and financial planning institutions.

IFG Life tracks attendance, engagement, and knowledge improvements through pre- and post-session tests, which also meet regulatory reporting standards.

“Low literacy causes people to see insurance as a financial burden rather than a protection tool,” Fabiola said in an emailed reply to questions. She cited lack of urgency, low trust, and perceptions of high premiums as key obstacles to adoption.

The company has simplified claims by allowing policyholders to upload documents and track progress online at no extra cost. “This transparency helps build confidence,” she said.

Fabiola said early ownership keeps premiums manageable and ensures wider coverage. “Insurance is not a financial burden but financial protection amid uncertainty.”

The strategy complements the financial regulator’s initiatives to raise financial literacy and spur innovation to deepen market participation. IFG Life said protection gaps remain a challenge but also represent a long-term growth opportunity.

“Insurance is not just a financial contract; it is a responsibility to protect your family,” Fabiola said. “Our mission is to help Indonesians act today, not tomorrow.”