Allianz Indonesia Sharia strengthened its business performance by expanding through its existing distribution channels. During the first half 2010, Allianz Allianz Life Indonesia sharia reported IDR160.15 billion Gross Written Premium (GWP) while Allianz Utama reported IDR 6.04 billion GWP.
“In line with our management plans, this year, we keep on developing our agency business performance. We are also expanding our cooperation with more bank partners, both local and international leading banks,” said Kiswati Soeryoko, Director of Sharia Business, Allianz Life Indonesia.
“We are focused to develop our agency and direct marketing channels. On the other hand, we also have strong business relationships with some key brokers and banks, which we are very confident to work with,” said Soekrisno Tjokro, Managing Director of Allianz Utama.
Driven by the customers demand and the great market potential, Allianz introduced its first asian Sharia business unit in Indonesia in 2006. Today, Allianz Sharia products are also being sold in Saudi Arabia and Bahrain.
Allianz Life Indonesia reported its sharia GWP of IDR 160.15 billion in first half of 2010, up by 86.33% compared to the same period last year of IDR 85.95 billion. The majority accounts to individual life, whereas around 1 percent derives from individual health insurance which had been introduced in 2008.
Total policies issued in the first half 2010 reached more than 14.000 policies, increased by nearly 31% compared to first semester last year.
“Continuously improving new business shows that our products meet the customer needs. We will continue to focus on excellent products design and strengthen all different distribution channels. Our agents and bancassurance partners have shown an impressive sales performance in the first half of 2010,” added Kiswati.
In the individual life sharia, 90.35% of the business was generated from the company’s solid agency forces, the Allianz Financial Planner Network (AFPN), while the rest 9.65% was gained from bancassurance business. For the individual health sharia, 98% of the business was generated from its agency business and the rest was from direct sales.
Allianz Utama Indonesia, which offers property, motor vehicle, engineering, marine and casualty sharia insurance, reported a total GWP of IDR 6,04 billion, slightly below last year’s first half GWP of IDR 6,18 billion. This is due to the company’s strategy to improve the quality of its business portfolio by implementing more prudent underwriting practices.
“This year we are implementing stricter risks selection, particularly in sharia property business and revisited our car insurance rate. These efforts have slightly reduced our business volume, but have improved the combined ratio. We strive for profitable growth and a sustainable customer service also in the sharia general business,” said Soekrisno.
Motor vehicle insurance contributed 50% of the total GWP while engineering and property insurance contributed 24% and 23% respectively. Marine and casualty insurances completed the rest of business portfolio.
Our multi distribution channels pay off: agency business contributed 46% of the total GWP, broker business 40%, direct business 9%, bank business 1% and others 1%. Allianz Utama sharia reported 6.7% growth in number of policies issued, totaled to 1.345 policies year on year.