“Despite of heavy challenges we faced in the last quarter of 2008, our sharia business showed a tremendous growth of premium income in all of our businesses of life, health and general insurance,” said Jens Reisch, President Director of Allianz Life Indonesia.
Driven by the customer demand and the great potential of market, Allianz has also launched products based on Sharia principles. As of today, Allianz Sharia products are also being sold in Saudi Arabia, Bahrain and Egypt. As the first Allianz unit in the Asian region, Allianz Utama and Allianz Life Indonesia started its sharia business in 2006.
“With our sound financial position, strong commitment to develop service network and culture as well as supported by our dedicated business partners, we were able to grow our sharia business again and winning more trust from the market,” added Volker Miss, President Director of Allianz Utama.
Allianz Life Indonesia reported its’ sharia GWP of IDR 197 billion for a full year 2008, compared to IDR 71.7 billion in 2007. Individual life insurance contributed 99% of the GWP and individual health insurance, which was offered first in mid 2008, contributed 1% of the total GWP. Total new policies issued in individual life sharia in 2008 grew by nearly 240% to more than 16,800 new cases from approximately 7,000 policies issued in 2007. The company issued 373 health individual sharia policies.
In its individual life insurance sharia, 89% of the business was generated from the company’s solid Allianz Financial Planner Network, which today is supported by more than 11,000 financial consultants. The rest 11% was gained from bancassurance partnership.
“Our main premium contributor for life sharia business in 2008 was our agency forces due to the nature of the product and also the fact that we have just started our bancassurance partnership for sharia business in 2008,” said Kiswati Soeryoko, Director of Sharia Business, Allianz Life Indonesia. “However, we are optimistic to further expand our sharia business through bancassurance and also in individual health insurance business,” added Kiswati.
Allianz Utama Indonesia, which offers property, motor vehicle, engineering, marine,and casualty sharia insurance, reported 370% growth of its total GWP to IDR 8.9 billion, compared to IDR 2.4 billion in 2007. Motor vehicle insurance contributed 55% of the total GWP while property insurance was the second contributor with 27% and Engineering insurance contribute 16%. Marine and casualty insurance completed the rest of the business portfolio. The company also reported 380% growth in number of policies issued, amounted to 2,130 policies.
In respect of distribution channels; agency business contributed 66% of the total GWP, broker business, direct business and bank business contributed 26%, 6% and 2% respectively. However, all of those channels showed positive growth compared to the previous year.
“Our focus to develop our retail sharia business with motor vehicle and property insurance, paid off. In 2008, both of line of businesses jointly contributed 81% of our total sharia premium income. However, we are now also able to accommodate the needs of engineering, marine and casualty insurance,” said Kiswati.