Indonesia: Life market upbeat about growth prospects

| 31 Oct 2017

The Indonesian Life Insurance Association (AAJI) is optimistic that the industry can record 30% growth this year based on the growth trend of the last eight months.

Data from the Financial Services Authority (OJK) show that for the first eight months of this year, life premiums reached IDR110.60 trillion (US$8.1 billion), a 37.2% surge compared to the corresponding period last year, reported Kontan.

With a population of more than 260 million people, the potential of life insurance market in Indonesia is huge. Currently, only 1.7% of them hold an insurance policy.

Distribution updates

On a separate note, Milliman’s latest Indonesia Life Insurance Newsletter, which shared developments in the market from 1 June to 30 September 2017, provided the following distribution updates:

Bancassurance

The following new bancassurance partnerships have been announced:

  • Victoria Alife has signed a strategic bancassurance partnership with Victoria Bank, selling personal accident products.
  • Equity Life Indonesia has signed a strategic bancassurance partnership with Ganesha Bank, selling traditional whole life and unit-linked products
  • Great Eastern has signed a strategic bancassurance partnership with Mayora Bank, selling credit life products.
  • Wanaartha Life has signed a strategic bancassurance partnership with Bank Victoria Syariah, distributing its Syariah products.
  • CAR Life has signed a strategic bancassurance partnership (referral business model) with Bank Jasa Jakarta to distribute its life insurance products.

Agency

Ms Aryani Razik, Country Chair of MDRT Indonesia, announced that the group plans to double the number of agents joining the MDRT from the current number of 1,367. The expectation is that Indonesia will have the highest number of MDRT members in ASEAN within the next two to three years.

Telemarketing

Sinarmas MSIG Life has signed a strategic partnership (telemarketing business model) with Bank BTN. Through this partnership, Sinarmas MSIG Life will offer four products to BTN’s customers.  

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