Indonesian insurance buyers grow more selective as trust and transparency take centre stage

Indonesia’s insurance consumers are becoming more discerning, with claims certainty, transparency and ease of use emerging as key decision-making factors beyond price, according to insurtech platform ZenInsure.

The shift comes as Indonesia’s general insurance industry continues to post modest growth. Data from the General Insurance Association of Indonesia showed total general insurance premiums reached around IDR 120 trillion (US$6.8 billion) in 2025, up 2.7% year-on-year, although insurance penetration remains relatively low at roughly 0.5% of GDP.

Against this backdrop, ZenInsure said consumers are increasingly comparing products more carefully before committing to a purchase, reflecting a market that is becoming more mature while demanding greater transparency from insurers.

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Based on data from tens of thousands of users on its platform, ZenInsure found that consumers typically compare up to three policy offers before making a decision, with four in five users evaluating more than one option. While premium price remains the primary consideration, buyers are also scrutinising coverage scope, claims processes, partner workshop or hospital networks, payment methods, policy issuance speed and claims submission convenience.

“From the very beginning, we saw that what users need is not just a wide range of choices, but also ease of understanding information and certainty at the time of claims. That is why ZenInsure was built as a marketplace that not only helps compare products, but also guides users, including through a dedicated Claim Support service. This has driven ZenInsure's business growth by more than 3 times in Q1 2026 compared to the previous year,” said I Ketut Adi Putra Kusnadi, country head of ZenInsure Indonesia.

The company said its focus on claims assistance has contributed to a claims success rate of 93.13% over the past two years, with an average claims processing time of around three days, faster than the broader industry average of approximately five days.

Health insurance, meanwhile, continues to see strong demand from both corporate and individual buyers, particularly as employers increasingly position healthcare benefits as part of talent attraction and retention strategies.

However, rising medical inflation remains a major challenge for insurers. ZenInsure noted that medical inflation reached 13.6% in 2025, driving premium adjustments across the sector.

“Consumers are becoming more selective and are paying greater attention to the value for money of the protection they choose. Therefore, we are developing solutions that focus not only on protection during illness, but also on preventive aspects such as wellness, which is increasingly in demand, including as part of employee benefits. The challenge now is how health insurance can be increasingly understood not as a burden, but as a long-term investment,” said Pepe Arinata, president director of Asuransi Reliance Indonesia.

The trend towards more tailored and cost-conscious protection is also reshaping the vehicle insurance segment.

Although comprehensive coverage remains the dominant choice among car owners, ZenInsure said demand for Total Loss Only (TLO) policies is rising as consumers seek more affordable options. Sales of TLO policies through the platform increased fivefold year-on-year in the first quarter of 2026.

Electric vehicle insurance is also emerging as a fast-growing category. According to ZenInsure, EV insurance sales on its platform grew fivefold year-on-year in Q1 2026, outpacing overall EV sales growth, which expanded by around twofold based on data from GAIKINDO.

Sukma Darman, senior executive vice president of Zurich Asuransi Indonesia, said the market’s rapid evolution is pushing insurers to innovate more aggressively.

“Vehicle insurance continues to grow with double-digit growth in the first quarter. At the same time, consumer needs are becoming increasingly diverse and ever-changing. It is therefore important for the industry to keep innovating and delivering products that are relevant to customers' needs. Partnerships with marketplace platforms such as ZenInsure also help us better understand consumer insights and develop solutions that are better suited to various segments,” he said.

Looking ahead, ZenInsure said building consumer trust will remain central to expanding insurance adoption in Indonesia.

“We believe the need for insurance will continue to grow. What needs to be built is not only access to product choices, but also trust, understanding, and ease at the time of claims. Going forward, we will continue to educate more members of the public by providing transparent options and comprehensive understanding, so that customers can have certainty and peace of mind when using insurance,” Kusnadi concluded.

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