Bisnis Indonesia,
Jakarta: PT. Asuransi Allianz Life Indonesia and German Technical Cooperation (GTZ) together with Savings and Credit Dian Mandiri Cooperative will develop the Microinsurance in Indonesia.
During the 5-month trial of the product, Allianz and GTZ have at least insured more than 8,700 low income families who are members of the cooperative.
Microinsurance product of “Payung Keluarga” was launched in September 2006 having a first year target of 50,000 low income families.
Allianz was successful in launching a similar product in India several years ago. “For most clients, this is their first insurance they are able to buy”, said Jens Reisch, President Director Allianz Life Indonesia in Jakarta.
According to Allianz and GTZ, the Microinsurance market in Indonesia is large considering the high rate of poverty. This well cooperation project has shown satisfactory results.
Allianz plans to make the Microinsurance as a permanent business activity along with other existing products, as for GTZ, it will act as a mediator for Allianz and other channels.
In January 2007, GTZ and Allianz had started to sell and select their business partner to expand Microinsurance in Java and Bali. Payung Keluarga is affordable for the low economy class community, with only an annual premium of RP. 6,000 or US $ 0.66.
The product offers credit life insurance with some additional benefits. If a policyholder having outstanding loan passed away, then the remaining outstanding loan will be paid by the insurance.
That way the mourning family will not be burdened to pay off the outstanding loan. In addition, the beneficiary will receive cash in the amount of twice the basic loan amount.
Allianz and GTZ work together in designing and developing the product, meanwhile the selling and servicing is done by the business partner from a financial institution such as Bank Perkreditan Rakyat (Microbanks Savings and Credit Cooperative), rural community’s credit institution, Savings and Credit Cooperative, and NGO’s.