Allianz Life Indonesia, as one of the pioneers of microinsurance in Indonesia, strengthens its commitment by launching TAMADERA in Jakarta today. It is the first microinsurance product that combines protection and saving plans programs. Premiums start as low as IDR 10,000 per week.
“Allianz is the first and most committed joint venture insurance company to serve the Indonesian microinsurance market. This is because we are convinced that with microinsurance we will be able to reach a broader range of people in this country who are in need for insurance protection but could not afford the premium of normal insurance products,” said Handojo Kusuma, Deputy CEO of Allianz Life Indonesia.
TAMADERA is a combination of life insurance protection, critical illness coverage and a savings benefit. For a minimum premium of IDR 10,000 per week over 5 years, customers get life insurance cover of minimum IDR 2,500,000. In case of any of five critical illnesses (Cancer, Stroke, Heart attack, Kidney failure, Major burns) the insurance also pays IDR 2,500,000. If there is no claim, customers will receive their full premium back after five years, which is minimum IDR 2,500,000. A family would be able to use this payout for example to finance their children’s education.
“After six years of experience in microinsurance and Allianz currently being present in eight countries with a variety of microinsurance products, we think that it is an important step to be able to add a savings benefit to this new product. As such the insurance coverage can provide more than better preparing for risks and coping with a loss when it occurs. In the fortunate case of receiving the pay back without an insurance claim, this allows families to invest in a better future,” said Bruce Bowers, CEO of Allianz Asia Pacific.
Delivery of the first policy as the symbolic launch of TAMADERA micro-insurance products
Strong demand for microinsurance
Allianz started developing TAMADERA in respondence to its market research among low-income families. Participants expressed a high demand of life and health protection and a strong concern about high education costs.
“Our new TAMADERA product aims to serve the three most fundamental demands of low income households: a simple insurance which can cover their life, assurance of the financial plan for their children’s education, and assistance in case that certain illnesses strike. We are confident that this product will be positively accepted by the market so that we can achieve our target of 100.000 policies with IDR 30 billion premiums from TAMADERA over the next three years,” said Handojo Kusuma, Deputy CEO Allianz Life Indonesia.
Currently there is no other life insurance company in the country who offers a similar microinsurance product. TAMADERA will be distributed through Allianz Indonesia’s partner network of already more than 30 micro-finance institutions, Non Governmental Organizations (NGOs) and banks.
“We are grateful for the strong support and commitment shown by our microinsurance distribution partners, which has made microinsurance one of the most rapid growing businesses of Allianz Life Indonesia,” added Handojo.
The microinsurance portfolio of Allianz Life Indonesia has grown significantly since the company launched its first microinsurance initiative in 2006. After generating a premium income from microinsurance of IDR 9.5 billion in 2009, Allianz expects to increase this amount to over IDR 30 billion in 2010. Currently, Allianz in Indonesia insures 440,000 customers with its various microinsurance products which add up to 25 percent of the company’s total number of insured.