Customer Focus Drives Allianz to Launch Sharia Insurance Products to the Indonesian Market
Jakarta, January 24, 2006 - In recognition of the growing demand for Sharia products in Indonesia, Allianz’s customers can now buy life and non-life Sharia insurance in a one-stop shopping experience. In the initial launch period, PT Asuransi Allianz Life is offering Unit Link Life Insurance while PT Asuransi Allianz Utama offers fire and motor vehicle insurance.
Werner Zedelius, Member of the Board of Management of Allianz, responsible for Growth Markets commented, “In line with our customer focus strategy, Allianz Indonesia is responding to the growing requests for Sharia-based insurance protection from its customers and banking partners. Indonesia is the first country in Asia where Allianz is introducing Sharia products.”
Taking into account the dominant Muslim population in Indonesia and the far-reaching impact on the country’s society, Jens Reisch, President Director of PT Asuransi Allianz Life Indonesia stated, “We aim to meet the individual needs of our customers, who are unique in each market. These Sharia products reflect Allianz Indonesia’s desire to be our customers’ first choice for insurance.”
Sharia will increase insurance penetration in Indonesia
Currently, insurance penetration in Indonesia is below 3 percent, which is relatively low when compared to other Asian markets such as South Korea and Japan. Allianz predicts that the burgeoning Sharia market will help improve insurance penetration in Indonesia and this will be supported by increasing levels of awareness about the benefits and protection that insurance offers to people and the economy.
The penetration of the new products in Indonesia is expected to follow the success of neighboring country Malaysia, where around 20 percent of life premiums come from Sharia related insurance. By contrast, today in Indonesia Sharia related life premiums account for 1 percent.
Klaus Voeste, President Director of PT Asuransi Allianz Utama Indonesia said, “The Sharia program is a testament to our commitment to understand and respond to the needs of the Indonesian people. It also reflects the growing sophistication in people’s choices for wealth management and future family protection.”
Potential for Sharia products
Indonesia is considered an extensive market for sharia products, as shown by the rapid growth of Sharia banking, which grew by 88.6% in 2005. PT Asuransi Allianz Life is targeting 1000 Sharia life policies and IDR 5 billion in Premium income from the Sharia segment in 2006. The Company expects its Sharia business to increase in the next 5 years to comprise 10 percent of its total new individual life business.
PT Asuransi Allianz Utama has a target of achieving 2000 Sharia non-life policies and IDR 5 billion in Premium income within the first year from its non-life Sharia business. The Company expects growth of more than 30% in this segment over the next two years.
The first prime target market for Allianz Utama will be bancassurance business, with sharia-based consumer banking activities insured on a sharia basis. Klaus Voeste commented, “Our primary target is to serve the needs of our Sharia bank partners with reliable and trustworthy insurance schemes. We will also serve any direct requests from customers and brokers, although this is an area we are still developing.”
Allianz Indonesia has plans to grow its product range in the future through the development of new sharia products.
Allianz opens in Banda Aceh.
Allianz will be launching its sharia products in Aceh on the 25th of January 2006 through a new agency office. Jens Reisch commented, “Aceh is a high potential market for sharia products. The region is expected to experience positive growth post-Tsunami and the introduction of sharia will certainly benefit the local people.”
For furher details:
Tel.: 021-2926 8888
Fax.: 021-2926 8080
The Allianz Group is a leading global provider of insurance and financial services with operations in more than 70 countries, and employing over 173,000 staff. The Group serves more than 60 million customers worldwide, including close to half of all Fortune 500 companies.
Through its insurance business, Allianz employs more than 20,000 staff in 14 countries across the Asia Pacific region. In 2004, the Group recorded total revenues of Euros 1.672 billion from its property and casualty insurance operations, and Euros 2.551 billion from its life and health insurance operations in the Asia Pacific region*.
PT Asuransi Allianz Life Indonesia was established in 1996, and offers life and health insurance solutions, unit link products and the pension plans (DPLK) for individuals as well as the corporate. Today, PT Asuransi Allianz Life Indonesia operates a wide network of more than 60 agency offices throughout Indonesia in more than 42 locations, supported by 6000 financial consultants dedicated to serving some 280,000 policyholders. PT Asuransi Allianz Life has already grown substantially over the past twelve months, having increased its premium income in 2005 by 40% when compared to the same period last year.
Since its establishment in 1989, Allianz Utama Indonesia has grown into one of the largest non-life insurers in Indonesia and now operates a distribution network of 7 branch offices and 17 Point of Sales in Jakarta and other important cities nationwide. For its outstanding performance, Allianz Utama Indonesia was honored Excellent / Very Good grade from Infobank Insurance rating 2002 & 2003, The Best General Insurance Company from Bisnis Indonesia Award 2003 and also Best General Insurance Company from Investor Magazine Insurance Rating 2004.
*Total revenues comprise property-casualty segment’s gross written premiums, life and health segment’s statutory premiums.