Driven by the customer demand and the great potential of market, Allianz companies in Indonesia have launched products using the Sharia principle in 2006. As for the first semester 2009, PT Asuransi Allianz Life Indonesia and PT Asuransi Allianz Utama Indonesia Sharia Divisions reported a continuous growth in total combined number of policies issued, which reached more than 11,800 policies, up by 29% compared to first semester 2008.
“Our Sharia business has faced a more challenging market situation in the first semester 2009. However, with the strong support from all of our business partners, especially our agency forces and the strong brand of Allianz, we are able to win the trust from more customers in Indonesia,” said Volker Miss, President Director of Allianz Utama Indonesia.
In respect of premium income, the total combined Gross Written Premium (or contribution) from both Sharia divisions of Allianz in Indonesia has reached IDR 91.57 billion, compared to IDR 97.35 billion in the first semester 2008. Lower transactions in single premium individual life insurance, as what have been predicted, was the reason for this slight drop. The GWP mainly comes from retail based products, which are driven by strong sales performance of its agency business.
General insurance Sharia business
Allianz Utama, the Allianz non-life insurance company in Indonesia, experienced growth through its two major lines of sharia business in the first semester 2009; Motor vehicle and Property sharia insurance. In motor vehicle business the premium income was boosted to more than double to IDR 3.32 billion, compared to IDR 1.13 billion in the previous year. In Property sharia insurance business, the premium income increased to IDR 1.84 billion compared to IDR 1.23 billion in the first semester 2008.
Number of policies issued reached 1.230 policies, compared to 604 policies in the first semester 2008. The GWP (contribution) generated by Allianz Utama Sharia division in the first semester 2009 has reached IDR 5.62 billion. It significantly grew compared to IDR 3.47 billion in the same period last year.
“Our motor vehicle and property sharia insurance businesses have been accepted very well by the market. With competitive products and strong support from our business partners in sales, these two lines of business has became our main lines of businesses in general insurance sharia business,” said Soekrisno Tjokro, Managing Director of Allianz Utama Indonesia.
Agency business generated 62% of the total GWP Allianz Utama Sharia Division, while Broker, Financial Institution and Direct businesses contributed 30%, 4% and 4% of the total GWP respectively.
Life and health insurance Sharia business
In Life and Health insurance sharia business, the Annualized New Premium (ANP), which reflects the new business value in life insurance business, increased to IDR 54 billion, compared to IDR 43 billion in first semester 2008.
This was due to the growth in number of policies, which increased to 10,618 policies, compared to 8,721 policies in the same period last year. The individual life sharia insurance contributed 97% of the total policies while the individual health sharia insurance filled up the remaining 3%.
“Our regular premium business was dominating our GWP income in this first semester. It showed that there is still strong demand for insurance, especially for the purpose of family financial planning. Last year we experienced very strong demand in our single premium products, but this semester, we were more focused to cater regular premium products to anticipate this change in demand,” said Kiswati Soeryoko, Director of Sharia Allianz Life Indonesia.
Allianz Life Indonesia is now supported by more than 4,100 accredited sharia agents, 23% more than the number of accredited agents in the first semester 2008. This successful effort in developing accredited agents has supported the growth in sales of Allianz Life’s regular premium life individual sharia products.
The company also reported a GWP income of IDR 86 billion compared to IDR 94 billion in the previous year’s first semester, in which 95% of GWP income was generated from its agency business while the remaining 5% were generated from bancassurance business.