Health and Medical Insurance Market Size
| Study Period | 2019 - 2028 |
| Base Year For Estimation | 2022 |
| Forecast Data Period | 2023 - 2028 |
| Historical Data Period | 2018 - 2021 |
| CAGR | 7.70 % |
| Market Concentration | High |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Health and Medical Insurance Market Analysis
Indonesia Health and Medical Insurance Market is expected to deliver strong growth for the forecasted period. 235 million Indonesians are now covered by the national health insurance scheme (JKN), which is managed by the Social Insurance Administration Organization (BPJS). It includes some medical and non-medical benefits but excludes orthodontics, infertility treatments, and drug rehabilitation (see Health chapter). While the BPJS can be commended for offering a measure of health care coverage, issues with the quality of service, financing, and participation currently undermine confidence in the system. The BPJS booked a deficit of Rp16.2trn ($1.1bn) in 2020 after receiving significant state support via presidential decree between August and December of that year, which helped cover some of the shortfalls in subsidized premium for 96.8 million poor and vulnerable households.
As health insurance premium rises, the expectation of quality care is likely to rise in tandem, providing the opportunity for foreign investors to bridge the gap. However, some restrictions remain on international investment in hospitals. The BPJS already partners with 30 private insurers on a Coordination of Benefit initiative that offers policyholders private insurance coverage for the amount between their BPJS tariff and the total cost of the medical procedure. Private health insurers are also improving customer experience by offering cashless payments and broadening their offering to include advice on health and wellness.
Indonesians have become more interested in insurance to mitigate uncertainty regarding their health and personal finances brought about by the pandemic, yet insurance penetration is still low at just 3%. Indonesia is the most attractive life insurance market with high profitability and growth.
For much of the new century, life insurance returns in Indonesia have surpassed those in other Asian markets. The success has been supported by favorable market conditions. Yet penetration remains low, and some of these conditions are changing. To keep pace with the evolving Indonesian market, companies will have to understand these shifts and how to find the most promising growth opportunities.
Personal accident and health insurance (PA&H), which accounts for 8% of general insurance premiums, is forecasted to grow in 2022 backed by increase in awareness for health insurance products. As policies providing COVID-19 hospitalization and telemedicine benefits gained prominence, the category is expected to grow at a CAGR of 7.7% during 2022-2027 and partially mitigate decline from other business lines.
According to the Indonesia Insurance Statistics published by the Financial Services Authority, the Indonesian life insurance industry made a larger after-tax loss in the fourth quarter of 2021 compared to the fourth quarter of 2020. Over Q4 2020, the Net Profit before OCI decreased compared to Q4 2019, caused mainly by a 39% decrease in investment income and a 2% increase in total expenses. The decrease in net premium income was driven by lower gross written premium and higher reinsurance premiums ceded.
Health and Medical Insurance Industry Segmentation
Health and Medical insurance provide coverage for the medical, surgical, prescription drugs, and other medical expenses incurred by the insured. Insurance can reimburse the insured for expenses incurred from illness or injury or pay the care provider directly. A complete background analysis of the Indonesian health insurance industry, which includes an assessment of the National Health Accounts, economy, and emerging market trends by segments, significant changes in market dynamics, and market overview, is covered in the report. Indonesia Health and Medical Insurance Market can be segmented by Provider and Product time. By Provider, it can be segmented as Public/Social Health Insurance and Private. Public Health Insurance can be further segmented into Askes, Askesin, Jamkesmas, JPKG, and JPKM. By Product Type, Health and Medical Insurance Market in Indonesia can be segmented into Individual Health Insurance products and Group Health Insurance products.
Health and Medical Insurance Market Trends
This section covers the major market trends shaping the Indonesia Health & Medical Insurance Market according to our research experts:
Number of Beneficiaries from Public Health Insurance in Indonesia
Although the Indonesian government has introduced reforms to improve healthcare access for the poor, the country remains short on resources in the form of hospitals and medical professionals. As a result, public hospitals are often overcrowded, underfunded, and understaffed. Even once consultation is secured, there’s no guarantee that the doctor will speak English, making public healthcare inaccessible for most ex-pats in Indonesia.
Expats are not entitled to government-funded cover under the country’s public health insurance scheme. Those moving to Indonesia for work or retirement will usually need to secure comprehensive health insurance in order to obtain a visa. Expats who are moving to Indonesia on international assignment should check with their employer if international health insurance is included as part of an ex-pat employment package.
As a result of the low standards and inaccessibility of public healthcare in Indonesia, most ex-pats prefer to make use of private healthcare facilities in the country. Medics at these institutions are more likely to speak English and the care will generally be of a better standard. However, the capabilities of private hospitals in Indonesia may still be somewhat limited. For medical emergencies and complex surgical procedures, medical evacuation to a neighboring country with more specialized staff and equipment may be required. It is crucial that any expat health insurance policy has provisions for these issues. Expats should ensure their policy covers medical evacuation. Those who have health insurance provided by their employer should also check the extent of the coverage.
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Universal Health Coverage in Indonesia Aiming to Meet Healthcare Needs of the Entire Country, by 2019
The healthcare system in Indonesia is evolving rapidly to meet the varied health needs of its vast population. It is the fourth most populous country, and is facing challenges of the growing healthcare costs to implement the UHC initiative, which is named as JKN (Jaminan Kesehatan Nasional).
This initiative ensures that more than 40% of the country residents are covered by government sponsored subsidies, to address their health concerns. Indonesia’s quick transition from official development assistance for health and a budget deficit facing the country’s social insurance administration organization (called BPJS), which administers the national health insurance program, have made health technology assessment (HTA) a critically important tool.
Health and Medical Insurance Industry Overview
The market is predominantly controlled by the top 10 participants that cover 75% of the market, creating a consolidated market with tougher competition among the players. However, it is disheartening to note that the country’s health insurance industry is plagued with about 24% of fraud rate in health insurance claims.
Health and Medical Insurance Market Leaders
Allianz Care
AXA Indonesia
AIA Financial Indonesia
Prudential Indonesia
Manu Life Indonesia
*Disclaimer: Major Players sorted in no particular order
Health and Medical Insurance Market News
- Innovations across medical fields are creating new avenues for life and health insurance risk assessments.The innovation that impact life and health insurance is evidence-based under- writing (EBU), use of data spawned by wearable fitness devices and the use of gene testing results.
Health and Medical Insurance Market Report - Table of Contents
1. INTRODUCTION
1.1 Scope of the Study
1.2 Key Deliverables of the Study
1.3 Study Assumptions
2. RESEARCH METHODOLOGY
2.1 Analysis Methodology
2.2 Research Phases
3. EXECUTIVE SUMMARY
4. GOVERNMENT REGULATIONS AND INITIATIVES
4.1 Insights on the Implementation of Indonesia's National Health Insurance Scheme (Jaminan Kesehatan Nasional, or JKN) on the Health Coverage in Indonesia
4.2 NHIA - Latest Regulations on Health Insurance in Indonesia
4.3 Brief on the Indonesian Five-year UHC Goal and its Implications on the Indonesian Health Sector
5. INDUSTRY DYNAMICS AND INSIGHTS
5.1 Current Market Scneario
5.2 Market Dynamics
5.2.1 Drivers
5.2.2 Restraints
5.2.3 Opportunities
5.3 Brief on the Insurance Premiums, Trend in the Medical Inflation Rate and the Comparison with the Asian Average on Health Insurance Premium Costs
5.4 Importance of the Role Played by Private Health Insurance, alongside JKN
5.5 Macroeconomical Trends and the Rise of the Middle Class in the Procurement of Health Insurance
5.6 Indonesian Health Spending Profile and the Per Capita Health Expenditure
5.7 Industry Attractiveness - Porter's Five Forces Analysis
5.8 Value Chain/Supply Chain Analysis
6. INDONESIA HEALTH INSURANCE INDUSTRY OVERVIEW
6.1 BY PROVIDERS
6.1.1 Public/Social Health Insurance
6.1.1.1 Askes
6.1.1.2 Askesin
6.1.1.3 Jamkesmas
6.1.1.4 JPKG
6.1.1.5 JPKM
6.1.2 Private
6.2 BY TERM
6.2.1 Short -term
6.2.2 Long-term
6.3 BY PRODUCT TYPE
6.3.1 Single/Individual Health Insurance Products
6.3.2 Group Health Insurance Products
7. COMPETITIVE LANDSCAPE
7.1 Overview (Market Concentration and Major Players)
7.2 Company Profiles
7.2.1 Allianz Care
7.2.2 AXA Indonesia
7.2.3 AIA Financial Indonesia
7.2.4 Prudential Indonesia
7.2.5 ManuLife Indonesia
7.2.6 AVIVA
7.2.7 BNI Life
- *List Not Exhaustive
8. FUTURE GROWTH PROSPECTS OF THE INDONESIAN HEALTH INSURANCE INDUSTRY
9. APPENDIX
9.1 Indonesian Health Insurance Statistics - Social Health Insurance Scheme
9.2 Trend Analysis of Per Capita Health Expenditure in Comparison with other ASEAN Countries
9.3 Statistics on Age-wise Health Insurance Coverage in Indonesia
10. DISCLAIMER AND ABOUT US
Health and Medical Insurance Market Research FAQs
What is the current Indonesia Health and Medical Insurance Market size?
The Indonesia Health and Medical Insurance Market is projected to register a CAGR of 7.7% during the forecast period (2023-2028).
Who are the key players in Indonesia Health and Medical Insurance Market?
Allianz Care, AXA Indonesia, AIA Financial Indonesia, Prudential Indonesia and Manu Life Indonesia are the major companies operating in the Indonesia Health and Medical Insurance Market.
Insurance in Indonesia Industry Report
Statistics for the 2023 Insurance in Indonesia market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Insurance in Indonesia analysis includes a market forecast outlook to 2028 and historical overview. Get a sample of this industry analysis as a free report PDF download.
Insurance Market in Indonesia Report Snapshots
