“Year 2008 was another year of good achievement for our microinsurance business,” said Jens Reisch, President Director of Allianz Life Indonesia. “After our 2-year operations, we have been trusted to insured of nearly 230,000 customers. For us, microinsurance business has a double bottom line: it has a positive social impact and is financially sustainable for us,” he added.
Total policies issued for the year 2008 increased 403% to 178.506 policies compared to the year 2007, while total number of insured has grown by 417% to 183,800 people. Since Allianz introduced its microinsurance business in 2006, nearly 230,000 people have been covered by Allianz Life Indonesia.
“We believe that our micro insurance has been serving the right target market, the low-income households which have difficulties to get access to proper insurance protection” said Jens Resich. “We protect them conveniently at the time they started to shape their future life with a small business funded by their microcredit. We hope that they will succeed in their plans and will always remember Allianz as their first insurance partner,” explained Jens Reisch.
Payung Keluarga, the name of Allianz life Indonesia’s microinsurance product is a flexible product, which provides options of coverage ranging from the basic credit life protection for the debtor and their spouse to additional payouts to help the family to ease the financial challenges after the death of their breadwinner. The minimum premium starts from only IDR 6,000 (USD 0.6) per year.
“Our Payung Keluarga offers comprehensive protections to our microinsurance customers and their family thus keep our Micro Finance Institution partners’ credit portfolio safe and grow profitably” said Handojo Kusuma, Director in Charge for Allianz Life Indonesia’s Microinsurance business.
In terms of the premium volume, Allianz Life recorded more than IDR 1 billion of premium income from its microinsurance business in 2008, an increase of more than 350% from IDR 235 million over the previous year. Out of that total premium income, 84% was generated from the conventional product and 16% was from the sharia-based microsinsurance product. Within the year 2008, Allianz has settled 76 claims for its microinsurance customers.
“Even though this business is relatively very small in term of money value, but with the right administration and management system, our microinsurance business can still generate reasonable profit for us and not to forget it is also part of our Corporate Responsibilities at the same time,” said Handojo.
Until today, 21 Micro Finance Institution (MFI) partners have been cooperating with Allianz in the microinsurance, consisting of 4 Koperasi (Cooperatives), 11 Yayasan (Social Foundations), 4 BPRs (rural banks) and 2 Commercial banks. The main areas penetrated so far include Sumatera, Jakarta, West & Central Java, Bali, Sulawesi and Sumba Island (East Indonesia).
For the year 2009, Allianz Life Indonesia targets to serve at least 200,000 new customers and expects to reach more than IDR 3 billion of premium income from its microinsurance business.
“We deeply thank our existing microinsurance partners; for their best support and cooperation so far and looking forward for an even stronger relationship and mutual trust spirit in the future,” said Jens Reisch.