Business in life insurance is facing heavy challenges in Indonesia with financial problem and difficulty in attracting investors. The root of the problem is decline in interest rate and business uncertainty amid low purchasing power of the people and the fact that insurance is not quite popular in the country.
The rupiah fall lately against the U.S. dollar worsened the condition. The amount of premium and income from investment decline. Total amount of premium was only around 1.25%-166% of the country' Gross Domestic Product (GDP) in the 1997-2001 period. In 2002, premium was Rp 11.3 trillion or an increase of 9.7% from the previous year. In 2003, insurance industry grew by an average of 30% as against 70% in 1997.
The collapse of property business and liquidation of many banks contributed to the difficulties faced by insurance companies as the impact was bad for investment in certain sectors. Fortunately income in interest on deposits helped maintain growth.
The rupiah fall against the dollar caused an increase in costs burdening the business sector including insurance. Meanwhile, limited capital makes it difficult for insurance companies to cover large insurance forcing them to seek reinsurance with foreign partners.
Low economic growth and an increase in unemployment rate further weakened the purchasing power of the people in general. Based on official data, only 16% of the country's population of 215 million hold life insurance polish.
Life insurance companies compete not only among themselves but also against banks and mutual funds because of the absence of clear limits of business areas among the financial companies.
For example, the products of link unit and mutual fund are almost the same with market. The different lies in the regulators. Mutual fund is under the Capital Market Supervisory Body (Bapepam) and link unit is under the Insurance Directorate of the Finance Ministry. In other countries the regulators of the two products is one.
Slow growth
The law No. 2 in 1992 said life insurance companies offer service in meeting risk of death. Therefore, life insurance companies could operate in life insurance, health insurance, accident insurance and found and manage pension fund.
Life insurance offers an alternative for the people to invest. Life insurance generally has a longer term than loss insurance. With longer protection of 5 to 30 years its investment has longer term such as in property, direct participation. Bonds and mortgage loan.
Despite the fact that most life insurance companies are facing liquidity problem, there has been no life insurance company declared bankrupt
or liquidated as the case with many banks. In addition, despite incentive offered by the government for merger no life insurance companies have comply with the call for merger.
Based on data at the Indonesian Insurance Council (DAI), by the end of 2003, the country had 55 life insurance companies including a state-owned company, 33 Indonesian private companies and 21 foreign joint ventures. The companies had around 80,000 agents altogether. Business in life insurance in the country grew sluggishly. The number of companies did not change much from 53 in 1999 including a state-owned company, 40 Indonesian private companies and 12 joint ventures.
In the past five years, the number of joint venture life insurance companies grew to from 12 to 21 units. On the contrary the number of Indonesian private companies declined from 40 to 33. The decline was likely caused by financial difficulty to resume business. Some of them were taken over by foreign investors.
Performance declines:--Business restriction imposed on some companies
The vulnerability of life insurance industry is indicated by the growing number of companies included in the list of Business Activity Restriction from year to year. The restriction was imposed on companies having a Risk Based Capital (RBC) of less than 100% as set by the finance ministry in 2003. The minimum RBC was raised to 120 in 2004.
Sufficient amount of capital is needed to cover risks of losses as a result of deviation in the management of assets and obligations. Therefore, financially powerful, companies will survive amid the situation such as prevailing at present in the country, but small companies will most likely collapse without additional capital.
Legal uncertainty is also a factor slowing the growth of life insurance companies in the country. For example, the finance ministry allows...
Thursday, January 31, 2008
For information on Medical Insurance.
Joint Venture Insurance Companies
There are several joint venture general insurance companies in Indonesia, in affiliation and partnership with reputable European, North American and Japanese insurance firms. When it comes to choosing an insurance company, the issue is usually trust - and who you feel comfortable dealing with. So a trusted company from your home country with familiar policy structures and claims procedures may be easier to deal with. Some Joint venture general insurance companies in Indonesia also offer reliable medical insurance. All of them offer traveler's, homeowners’ and household insurance, personal liability insurance and - , car/motor vehicle (third party, own damage, personal accident driver/passenger) and life insurance - with terms you can understand (wordings of insurance policies in Bahasa Indonesia and in English).Home Country Insurance
Ask your insurance company in your home country what coverage they offer during your stay overseas, as well as during travel to and from your new posting and on business trips. For example, you may assume that your homeowners policy will cover you no matter where you live, but in actuality, there may be many situations that are not covered by your home country insurance policy during your stay overseas. Also, there are always complications in processing claims, if overseas-based companies have no one to investigate locally.
Regardless of possible insurance coverages in your home country we advise you to locally purchase insurance protections for your property (if you own it), your household, your car(s), your personal liability and your domestic staff. Whereas for your medical insurance policy in your home country, you might already have sufficient coverage.
Insurance for your employees
If you are working for a multinational firm in Indonesia, you can also ensure protection for your employees - through group policies for health, life and personal accident. Often these medical schemes are good selling points in encouraging competent Indonesian staff to join your firm. These joint venture general insurance firms can also manage an internal insurance scheme, if you'd prefer to keep it all in-house. The government accident insurance scheme, Jamsostek, covers employee accident, death, old age and health care. Portions of the premium are paid by the company and the employee. This scheme is obligatory for companies with more than 10 employees and a payroll of more than Rp 1,000,000/month.
Insurance for household staff
It is customary for expats (as well as Indonesians) to cover the basic medical expenses of their household staff and drivers. Your maids, cook and driver may expect reimbursement of all medical expenses, out-patient and hospital, as well as assistance with maternity. Unlike in the west ... these medical bills are very reasonable as your servants will go to neighborhood practitioners, who don't charge high rates. To ensure that you don't get stuck with high medical bills for a household staff member, it is recommended that you make it a pre-condition of their employment that they pass a medical exam where they would be checked for TB and other communicable diseases. If a staff member you have already hired does have a serious disease that requires long term treatment, it may be better to supply them with medicine and have them return to the village for their recovery period.Your household staff will probably hope that your generosity will carry over to their children and spouse. While not required, it is quite common that expats assist in paying medical expenses of immediate family members of their household staff, on a case-by-case basis. Some may ask for loans for medical care for extended family members. Again, it's best to approach these requests on an individual case-by-case basis.
Employment with local firms
If you are coming to Indonesia with a local firm, don't assume they will offer the same comprehensive insurance coverage you would receive if working for a multinational company. Expats, in general, have a higher insurance awareness than most Indonesians, and this is reflected in company benefit policies. Many companies cover medical expenses under a reimbursement scheme to cover medical expenses, instead of an insurance policy. This means that all (or a percentage of) medical expenses are directly reimbursed by the company. Some companies set limits for lower-level employees, for example reimbursements up to a set amount per year, or up to the equivalent of one month's gross salary.Things to look for in an insurance company:
- Company with a long presence in Indonesia and a profitable balance sheet.
- A name you can trust and select among the top 20 insurance companies.
- Customer service in English (or your native language) - it's your right to expect good service
- Length of time to payment of claim (local companies are very slow – mainly due to their different service mentality and their low insurance premium requests – cause them to delay claims payments allowing them to compensate their low premium income with some investment income))
- Is the insurance coverage worldwide or local
- Does your coverage include special riot provisions
- Does your coverage include acts of nature such as floods, volcanic eruptions, and earthquakes (very important in Indonesia)
- Be sure the agent or broker you deal with is used to dealing with the expectations of expatriates
- Check out the websites and the possibility to purchase the insurance product on line or directly from the insurance company without an intermediary.
Of particular note in these uncertain times, be sure that your insurance has special riot provisions. Since the May 1998 riots in Jakarta, there is an increased awareness of the need for less ambiguous clauses in policies to guard against riot-related claim/payment disputes. Floods are VERY common in Jakarta and earthquakes are common throughout Indonesia, be certain that these acts of nature are adequately covered.
Insurance policies can be written in rupiah or dollar and premiums charged accordingly. If the potential expenses for your coverage are dollar-related (possible overseas medical care, replacement of imported auto parts) you may want to consider the merits of a dollar policy versus a limited policy which reimburses in rupiah.
Crimes against expatriates
Don't assume that because you are an expat you are somehow exempt from the current political turmoil and unrest in Indonesia. While expats are not targeted per se - we are, in general, conceived of as being wealthy. Most criminal elements are afraid to steal from expats (they're afraid you have some kind of special clout). Persistent rumors that the police deal very harshly with thieves who target expats also helps to deter crimes against expats. One of the most common crimes against expats is household robberies which are usually perpetrated by a seriously disgruntled ex-household staff member. Seldom are things recovered that have been stolen due to the lack of investigating capabilities of the police. So, sentimental items, ones you can't bear to lose, are best left in your home country.Foreign installations, factories, mines and plants, are under increasing pressure due to the new regionalization of power and authority in the country. Decades of perceived injustice, where multinationals collaborated with the powers that be in Jakarta (the former president's family and his cronies) to extract the wealth from the provinces, has led in the last year to increasing cases of vandalism and destruction of foreign property. Companies should insure adequate coverage in these cases.
Car Insurance
While car insurance is not required in Indonesia, the bank requires insurance if a car is financed. With the high prices of cars in Indonesia, this moving asset is exposed to unpredictable traffic, reckless drivers, flood, theft, and such petty theft as lifting of rear view mirrors and hubcaps. Indonesian drivers have also been known to duplicate car keys, which are later given to thieves to steal the car. Make sure you know exactly what your coverage would be in this instance. Stolen cars are seldom recovered; they are cut up for spare parts or the license plate is changed or they are quickly shipped to the provinces. In the few rare instances in which a stolen car is recovered, they are usually in terrible shape.To guard against theft - it is best to hire a driver that comes highly recommended by someone who has employed him for a significant period of time.
In case of an car accident, your insurance company chooses the repair shop that you must use. It would be best to find out which repair shop they use in case of an accident, as untrained repairmen can do significant damage to your car.
If you are not fluent in Bahasa Indonesia, we suggest you use caution in making the decision to drive your own car in Indonesia. Because, in case of an accident foreigners will most likely be “declared” as the guilty party regardless of the fact that the foreigner might be liable for the accident. If you have a driver, please let the driver handle the case at the scene of the accident.
Please carefully choose your insurance company for your car insurance (third party liability, own damage and personal accident of driver/passengers) and the price should not be your only priority. Be aware that you will find a number of low premium providers and the value of such products will only be discovered after your claim.
Personal liability insurance
This coverage is a must for expatriates living in Indonesia. Please check your policy in your home country, whether or not it includes worldwide coverage, which gives you some comfort in case of a legal dispute while you are traveling. Despite your worldwide coverage, we recommend you purchase a personal liability policy in Indonesia with a joint venture insurance company. Because the judicial system in Indonesia is a nightmare for foreigners, you are well advised to delegate this job to a capable insurance company, which will either compensate you for the claim or dispute it on your behalf.
Investment Products
The extra income you make as an expat working overseas can also be invested in an insurance scheme/product in which you can save for your kids' education or your retirement. While the changes involved in moving to Indonesia bring a lot of uncertainty to your life, it's just as important to protect your achievements and your assets in Indonesia as it is in your home country.Wednesday, January 30, 2008
Term Life Insurances
People think of an insurance to save themselves from aftermath of certain untoward circumstances like thefts, accidents, natural calamities and even death. It becomes therefore important to think of your loved ones after you. They might be put through a financially rough phase should something happen to you. Death is inevitable but you can play it safe and secure yourself and quoting insurance services thereby reducing the damage which could be done to your family after you.
A term life insurance as the name rightly suggests is a fixed term of coverage agreed upon by the insurance provider and the insured. a term life insurance is a pure death benefit wherein the benefits are paid out to the beneficiary should the insured die during the policy term. it imposes no cash value on its takers.
A term life insurance is broadly classified into two-Annual Renewable Term- here the premium is paid annually once for a one year coverage. However if the policy holder decides to extend the policy he has to agree to pay the appreciating save money on insurance premium each year.
Level Term Life Insurance the premium here would the same for all the years in the contract. Level term can be purchased for 1, 5, 10 or 20 yrs or even longer.
A term life insurance works like any other online insurance policy. The only difference here is that this is for a fixed period of time, a permanent or whole life insurance. however you can convert the term life into a whole life insurance policy by extending the policy and paying the flexible rate of premium. Usually people go for life insurance policies so as to secure their children’s future or to financially secure their loved ones should something happen to the insured in the due course.
In a term life insurance the most important factor to consider would be the duration of the contract. For e.g. if you know you are suffering from a terminal illness you could choose the period accordingly. Renewable option with this plan gives you more flexibility in terms of maintaining the duration of contract. So by the end of the contract upon qualifying events you get a guaranteed amount of capital which you can leave behind for your loved ones.
A cost of a term life insurances increase as the policy ages, so the wiser option here would be to choose a fixed term, and if you feel your needs show a decreasing trend over the policy term, you can terminate the contract early or renew the policy if need be. Now, after understanding the way the online insurance policy functions it gets easier for you to decide on what kind of insurance plan would best suit you.
Remember term life insurance works almost on the same grounds as like other life insurance policies. The concern here is how well have you understood the meaning of it and the way it functions, post which you could take a step ahead and protect yourself with the best in the market.
A term life insurance as the name rightly suggests is a fixed term of coverage agreed upon by the insurance provider and the insured. a term life insurance is a pure death benefit wherein the benefits are paid out to the beneficiary should the insured die during the policy term. it imposes no cash value on its takers.
A term life insurance is broadly classified into two-Annual Renewable Term- here the premium is paid annually once for a one year coverage. However if the policy holder decides to extend the policy he has to agree to pay the appreciating save money on insurance premium each year.
Level Term Life Insurance the premium here would the same for all the years in the contract. Level term can be purchased for 1, 5, 10 or 20 yrs or even longer.
A term life insurance works like any other online insurance policy. The only difference here is that this is for a fixed period of time, a permanent or whole life insurance. however you can convert the term life into a whole life insurance policy by extending the policy and paying the flexible rate of premium. Usually people go for life insurance policies so as to secure their children’s future or to financially secure their loved ones should something happen to the insured in the due course.
In a term life insurance the most important factor to consider would be the duration of the contract. For e.g. if you know you are suffering from a terminal illness you could choose the period accordingly. Renewable option with this plan gives you more flexibility in terms of maintaining the duration of contract. So by the end of the contract upon qualifying events you get a guaranteed amount of capital which you can leave behind for your loved ones.
A cost of a term life insurances increase as the policy ages, so the wiser option here would be to choose a fixed term, and if you feel your needs show a decreasing trend over the policy term, you can terminate the contract early or renew the policy if need be. Now, after understanding the way the online insurance policy functions it gets easier for you to decide on what kind of insurance plan would best suit you.
Remember term life insurance works almost on the same grounds as like other life insurance policies. The concern here is how well have you understood the meaning of it and the way it functions, post which you could take a step ahead and protect yourself with the best in the market.
Bancassurance Product Provides Solution for Customers’ Financial Needs
PT Sun Life Financial Indonesia sees the potential for significant growth in the bancassurance business in the upcoming years. The bancassurance market is predicted to grow 30 percent per year. Not only banks with asset above Rp 10 trillion, but banks with asset between Rp 1 trillion to Rp 10 trillion see the potential for bancassurance to increase their fee-based income. The 40 million to 45 million bank customers in Indonesia provides the bancassurance business with a huge potential market .
Insurance penetration in Indonesia has reached 0.8 percent of total premiums compared to the 2006 Gross Domestic Product. In other countries such as Malaysia, Singapore, and Thailand, insurance penetration is much higher, reaching 3.2 percent, 5.4 percent, and 1.9 percent respectively. One of the main factors supporting insurance premiums in 2007 is the expanded bancassurance penetration, complemented by public awareness of insurance and increases in the working population needing life insurance protection. This was noted by PT Sun Life Financial Indonesia President Director Barry Halpern at the bancassurance seminar “Maximize Customers’ Choice – Wealth and Protection”.
“Currently, the life insurance products offered through bancassurance are education insurance, term insurance, hospitalization, and unit-linked. For Sun Life Financial Indonesia, bancassurance is a prospective distribution channel to increase premium income and people’s awareness of the importance of life insurance,” continued Barry.
Sun Life Financial Asia Vice President Business Development Lingde Hong in his presentation Consumers Driving Product Innovation explained that each individual has different protection and investment needs for each of their life stage. The high demand from bank customers for financial products on protection and wealth management has encouraged insurance companies and banks to synergize and develop innovative products based on customers’ financial needs and objectives. “Risk of living too long or dying too soon are two important things that customers should note when choosing the right life insurance products to fulfill their protection and investment needs,” said Lingde.
Sun Life Financial Indonesia has been aggressively expanding its non-agency distribution channels through bancassurance. In less than two years, Sun Life Financial Indonesia has partnered Standard Chartered Bank, Bank Central Asia, Bank Negara Indonesia, Citibank and GE Money. The bancassurance seminar held today by Sun Life Financial Indonesia is to foster the further expansion of its bancassurance distribution channel as one of company’s premium income contributors, ensuring Sun Life a spot amongst the top five life insurance companies in Indonesia.
Sun Life Financial Indonesia and BNI Sign Agreement
PT Sun Life Financial Indonesia recently signed a Memorandum of Understanding (MoU) with PT Bank Negara Indonesia Tbk (BNI) to market its unit-linked product Optima Principal Value to BNI private banking customers.
PT Sun Life Financial Indonesia President Director Barry Halpern said, “Optima Principal Value is especially designed to fulfill private banking customers’ needs for protection and investment. This product provides life insurance protection for five years with a single premium payment, and provides customer with optimal investment potential.”
“Private banking customers have different needs to manage and expand their investment portfolios,” added Barry. Optima Principal Value provides protection with insurance benefits, such as death and accident benefits of up to 200 percent.
This partnership is one of Sun Life Financial Indonesia’s strategies to increase its bancassurance market penetration in Indonesia. “Moreover, Sun Life Financial Indonesia sees bancassurance not only as a prospective distribution channel to increase its premium income, but also as a means of increasing people’s awareness of the importance of insurance,” said Barry.
Meanwhile, BNI Head of Private Division Gatot Siswoyo said, “Our partnership with Sun Life Financial Indonesia will increase our ability to offer additional value to our customers with comprehensive products featuring protection and investment benefits.”
The ceremony was also attended by Sun Life Financial Indonesia Vice President of Marketing & Business Development Vivien Kusumowardhani and BNI Vice Head of Business Development Division Bety N Alwi. Sun Life Financial Indonesia and BNI also partnered in mid-2007 to offer an education insurance product, Academy Cash, to BNI credit cardholders through direct mail.
Sun Life Financial Indonesia Launches Two New Funds for Unit Linked Product "Brilliance"
PT. Sun Life Financial Indonesia today launches two new funds for unit-linked product Brilliance to maximize its multiple fund investment system features. It provides customers flexibility to choose the invested funds composition to suit their needs and the risk profile of their personal investment. The two new funds are called Brilliance Xtra Aggressive and Brilliance Xtra Dynamic, which is based on equity and balanced mutual funds products, respectively.
With the addition of two funds, Sun Life Financial Indonesia customers will have more options in determining their invested funds allocation. In addition to obtaining life insurance protection until the age of 88 years, customers now have more flexibility in designing their personal investment objectives as they can choose a new variety of investment funds that can provide investment return based on investment risk level and their personal risk profile.
“The level of public knowledge towards investment funds, instruments and risks has improved tremendously in the recent time. This has made equity and balanced fund became one of the most attractive funds for customers,” said PT. Sun Life Financial Indonesia President Director Barry Halpern.
“The soul of Brilliance is its flexibility. The arrival of the new funds supports Brilliance to become more competitive in the market as it provides more options for customers in choosing and determining their investment fund composition,” added Barry.
The first investment fund, Brilliance Xtra Aggressive is an investment fund that allocates most of its investment in both equity (80%-100%) and money market (0%-20%). Using Composite Index (JCI) as a benchmark, Brilliance Xtra Aggressive is the right choice for customers expecting a high return in accordance with their risk profile.
The second investment fund, Brilliance Xtra Dynamic allocates its funds in both bonds and equity (5%-75%) and money market (2%-90%). Brilliance Xtra Dynamic offers relatively higher return compared to other balanced funds, which is very suitable for customers with moderate to aggressive risk profile. The benchmark of this investment fund is the average of Rupiah one month time deposit interest rate and the average of Composite Index (JCI).
“Brilliance is designed to fulfill the needs and the demands of Indonesian market, to have life protection and investment simultaneously through unit-linked by offering an affordable premium that starts from Rp 1,500,000 or US$300,” said Barry.
The launch of Brilliance’s new investment funds is a part of PT. Sun Life Financial Indonesia’s strategies to increase its unit-linked premium income in 2008. “With Brilliance’s 80 percent contribution to the company’s total premium income in Q3 2007, we are very optimistic that we can increase our unit-linked premium growth by 40 percent in 2008,” said Senior Vice President, Agency, Harjanto Tanuwidjaja.
The Business Strategies of Sun Life Financial Indonesia in 2008
Sun Life Financial has a long-term commitment in Indonesia. Therefore, Sun Life Financial Indonesia will keep developing its business through a number of business strategies that will strengthen and expand its presence in Indonesian market.
Having been successful in retaining its position as the top five joint venture life insurance companies in Indonesia in terms of total new business premium income, Sun Life Financial Indonesia plans to focus on growing its business, both organically and non-organically in 2008.
Sun Life Financial Indonesia has three main focuses in developing its business in 2008 and beyond. Firstly, by strengthening its distribution channels organically. We plan to expand our agency distribution channel in 2-3 cities in Indonesia, as well as increase our sales agent number by targeting to reach 4,000 agents in 2008. For non-agency distribution channel, we aim to add more business partners for bancassurance and direct marketing/telemarketing by offering both traditional and unit-linked products which suit to customers’ trends in lifestyle and financial needs.
Secondly, we are also considering opening new business units such as asset management and shariah insurance considering these markets have grown significantly in the past few years.
Lastly, focusing not only on organic growth, we also seek opportunity to acquire other life insurance companies which own business strategies to support the growth of Sun Life Financial Indonesia. “These three business strategies are in line with our regional strategy to be the top five players anywhere we operate by 2012,” closed Barry Halpern.Global Conference on Insurance and Reinsurance
Global Conference on Insurance and Reinsurance
for Natural Catastrophe Risk: Istanbul, December 8th - 9th, 2005
Natural Catastrophe Risk Management Policy in Indonesia
for Natural Catastrophe Risk: Istanbul, December 8th - 9th, 2005
Natural Catastrophe Risk Management Policy in Indonesia
Presented by Werner Bugl, President Director
PT. Asuransi MAIPARK Indonesia
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CONTENTS
- Potential Catastrophe Risks in Indonesia: Earthquake, Tsunami & Volcanic Eruption
- Role of the Government & Insurance Industry in Dealing with Catastrophe Risks: Establishment of Special Risks Insurance Company, PT. Asuransi MAIPARK Indonesia (MAIPARK)
- Funding of MAIPARK
- Indonesian Standard Earthquake Insurance Policy: Scope of Cover, Tariff
- Market Penetration of Catastrophe Risk Insurance
- Future Challenges
- New Initiatives
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Catastrophe Risks in Indonesia
- Devastating Earthquake and Tsunami in Aceh in December 2004 killed 170.000 and displaced 550.000 people
- Earthquake in Nias in March 2005 killed 1,300 people and displaced 22,000
- 3rd Strongest Earthquake Since Beginning of Instrumental Records
- Largest Tsunami in Documented History in Terms of Casualties
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One of the World’s Most Seismically Active Regions
Where to put your foot ?
Not a place for the faint – hearted.
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Earthquake Record Subsequent to 26.12.2004
Since 26.12.2004 : 3,500 Recorded Earthquakes
183 Earthquakes > IV Richter Scale
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Home of 13% of World’s Active Volcanoes
- Indonesia is a country with more than 122 active volcanoes
- Eighty of these 122 active volcanoes have been classified “A” type according to their recorded eruption since year 1600
One of the most beautiful regions in the world
One of the most complex geological settings too
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Indonesian Volcanoes
122
16
26
80
Total
9
0
0
9
Banda Sea
8
0
3
5
Maluku
18
5
2
11
Sulawesi
20
0
0
20
Nusa Tenggara
2
0
0
2
Bali
35
5
9
21
Java
30
6
12
12
Sumatra
Total
Type C
Type B
Type A
Region
Beauty comes at a price
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Role of Government & Industry
- Establishment of a National Earthquake Pool in 2003 which became PT. Asuransi MAIPARK Indonesia (MAIPARK) as from 23rd December 2003
- All Non-Life Insurance and Reinsurance Companies operating in Indonesia are shareholders of the company; MAIPARK is owned by the Insurance Industry itself
- Promote discipline and proper handling of Earthquake Insurance
- Set a benchmark for Earthquake Insurance Pricing
- Collate national Statistics and Data Bases
- Build strong local Capacity for Earthquake
- Shareholders must cede a “Shareholder Cession” of each earthquake risk underwritten to MAIPARK. At present they cede 5% to 25% of sum insured with a max. of USD 2,500,000 any one risk to MAIPARK depending on the location of the risks
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Funding of MAIPARK
- Registered Share Capital is IDR 50 billion
- Paid-up Capital is some IDR 45 billion received from 91 Non-Life Insurance and Reinsurance Companies i.e. shareholders
- Shareholding of each company is determined by the Directorate of Insurance, Ministry of Finance by a fixed percentage of Investment Funds of each company as of 31.12. 2002
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Indonesian Standard Earthquake Insurance Policy:
Scope of Cover
- The Indonesian Standard Earthquake Insurance Policy covers property loss or damage and business interruption as a consequence of earthquake shock, fire following earthquake, volcanic eruption and tsunami
- Insurance Companies must issue a separate Earthquake Policy in addition to the Fire Insurance Policy
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Earthquake Tariff
- The Indonesian Insurance Association has released a “Reference Earthquake Insurance Tariff”
- Rate ranges between 0.104% to a maximum of 0.33% of the sum insured
- Rate is priced depending on risk Zone / Location, Type of Occupation and Building Constructions
- At present the average rate is approx. 0.12%
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Premium Computation
- Premium rate for first loss policies is subject to short period premium scale of tariff
- Premium is on annual basis or 12 calendar months. If period of cover is less than 12 months, premium is computed by using short-period premium scale
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Market Penetration of Catastrophe Insurance
- Non-Life Insurance penetration rate in general is very low, despite growing from 0.69% in 2004 to 0.72% (Gross Premium in % of GDP) in 2004.
- Increasing awareness for Catastrophe Cover after the Aceh Tsunami and Nias Earthquake. However, demand remains on the low side.
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Future Challenges
- Gradual increase of “Shareholders Cession” to MAIPARK
- More Insurance Education of the Society is needed
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Future Challenges (continued)
- Implementation of Building Code to improve Vulnerability of Building Stock and Insurance Underwriting Practices
- Establishment of the Natural Disaster Law
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New Initiatives
- Residential Earthquake Insurance Scheme
- Insurance / Reinsurance of Donor Funds for the Rehabilitation and Reconstruction of Aceh and Nias
- Urgent Installation of Tsunami Early Warning System
- Flood Risks & Terrorism Cover to be administered by MAIPARK in the coming years
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New Initiatives (continued)
- Voluntarily Earthquake Risk Cession to MAIPARK in addition to the “Shareholders Cession”
- Study on Sub-Soil Conditions
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Thank you
Terima kasih
Sun Life Corporate Social Responsibility
| Sun Bright is PT. Sun Life Financial Indonesia’s corporate social responsibility program that has the objective to improve the quality of life of Indonesian community in human development, health and education. | |
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| Sun Bright to Education | |
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Allianz Life Insurance History
Who we are
Allianz is one of the largest global providers of insurance, banking and asset management services. Founded in 1890 in Germany, Allianz is a company with a long history and a strong tradition.
Allianz now operates in more than 70 countries all over the world. Allianz serves around 70 million clients around the world. In addition, Allianz provides insurance coverage and its services to almost half of the Fortune 500 companies.
In September 2006, an agreement to merge was signed between Allianz AG and RAS Holding S.p.A. Allianz AG from then on changed its legal form to a Societas Europaea (SE), a European company. Following the registration procedures in Italy and Germany, on October 16, 2006 Allianz SE became the first company registered in the DJ EURO STOXX 50 Index.
In 2006, total revenues Allianz SE amounted to 101.1 billion euros and operating profit amounted to 1.034 billion euros, increased by 29.8 percent from last year. Net income amounted to 7.021 billion euros, increased by 60.3 percent from last year. Total Dividend amounted 3.8 euros per share, increased 90 percent from last year. Third-party assets under management amounted 764 billion euros.
Allianz Life Indonesia
Allianz has been present in Asia Pacific since 1917, when the Group provided fire and marine insurance in the coastal cities of China.
In Indonesia, Allianz first made its presence in 1981 through a representative office, which later became established as a joint venture company in 1989, known as PT Asuransi Allianz Utama Indonesia, a general insurance company. Allianz then expanded into life & health insurance and pension plan in 1996 by establishing PT Asuransi Allianz Life Indonesia.
Allianz products are widely distributed through our trusted business partners such as Allianz Financial Planner Network which are Allianz Agency and PT Buss; our bancassurance partners i.e Standard Chartered Bank, Bank Danamon, and Permata Bank; as well as brokers and account executives.
At present, Allianz Life Indonesia operates over 80 sales offices and outlets located in 43 cities throughout Indonesia from Banda Aceh to Jayapura supported by more than 6,500 agents.
In 2006 Allianz Life Indonesia generated a Gross Written Premium (GWP) of 1,305 Trillion Rupiah and has 2,608 Trillion Rupiah assets under management, serving more than 366.000 policyholders.
In 2007, awarded by Marketing Magazine and Carre - CSSL as the winner of “Service Quality Award 2007” for category Life Insurance Service.
Allianz is one of the largest global providers of insurance, banking and asset management services. Founded in 1890 in Germany, Allianz is a company with a long history and a strong tradition.
Allianz now operates in more than 70 countries all over the world. Allianz serves around 70 million clients around the world. In addition, Allianz provides insurance coverage and its services to almost half of the Fortune 500 companies.
In September 2006, an agreement to merge was signed between Allianz AG and RAS Holding S.p.A. Allianz AG from then on changed its legal form to a Societas Europaea (SE), a European company. Following the registration procedures in Italy and Germany, on October 16, 2006 Allianz SE became the first company registered in the DJ EURO STOXX 50 Index.
In 2006, total revenues Allianz SE amounted to 101.1 billion euros and operating profit amounted to 1.034 billion euros, increased by 29.8 percent from last year. Net income amounted to 7.021 billion euros, increased by 60.3 percent from last year. Total Dividend amounted 3.8 euros per share, increased 90 percent from last year. Third-party assets under management amounted 764 billion euros.
Allianz Life Indonesia
Allianz has been present in Asia Pacific since 1917, when the Group provided fire and marine insurance in the coastal cities of China.
In Indonesia, Allianz first made its presence in 1981 through a representative office, which later became established as a joint venture company in 1989, known as PT Asuransi Allianz Utama Indonesia, a general insurance company. Allianz then expanded into life & health insurance and pension plan in 1996 by establishing PT Asuransi Allianz Life Indonesia.
Allianz products are widely distributed through our trusted business partners such as Allianz Financial Planner Network which are Allianz Agency and PT Buss; our bancassurance partners i.e Standard Chartered Bank, Bank Danamon, and Permata Bank; as well as brokers and account executives.
At present, Allianz Life Indonesia operates over 80 sales offices and outlets located in 43 cities throughout Indonesia from Banda Aceh to Jayapura supported by more than 6,500 agents.
In 2006 Allianz Life Indonesia generated a Gross Written Premium (GWP) of 1,305 Trillion Rupiah and has 2,608 Trillion Rupiah assets under management, serving more than 366.000 policyholders.
In 2007, awarded by Marketing Magazine and Carre - CSSL as the winner of “Service Quality Award 2007” for category Life Insurance Service.
Sun Life Financial Indonesia
Building on its success in North America and throughout Asia, Sun Life Financial continues to strengthen its position as a leading company with financial strength in Indonesia.
Present in Indonesia since 1995, PT. Sun Life Financial Indonesia continues to build on and improve its commitment to customer service and to providing a comprehensive range of financial products to Indonesian communities at large.
Sun Life Financial’s capital investment in Indonesia is nearly CDN$50 million . PT. Sun Life Financial Indonesia has always achieved a risk-based capital (RBC) level above the government’s year-on-year regulations. As at December 31, 2006, its Risk based Capital (RBC) reached 288 percent, higher than the government requirement of 120 percent. PT. Sun Life Financial Indonesia had IDR 1.9 trillion in assets.
PT. Sun Life Financial Indonesia has 46 sales offices (as of January 10, 2007) in Jakarta, Surabaya, and 30 other cities throughout the country including Medan, Pekanbaru, Belitung, Padang, Jambi, Palembang, Lampung, Rangkasbitung, Bandung, Semarang, Purwokerto, Yogyakarta, Magelang, Solo, Malang, Kediri, Gresik, Jember, Bali, Makasar, Manado, Mataram, Palu, Balikpapan, Palangkaraya and Samarinda with products ranging from education and health insurance to retirement plans, protection and investment.
Present in Indonesia since 1995, PT. Sun Life Financial Indonesia continues to build on and improve its commitment to customer service and to providing a comprehensive range of financial products to Indonesian communities at large.
Sun Life Financial’s capital investment in Indonesia is nearly CDN$50 million . PT. Sun Life Financial Indonesia has always achieved a risk-based capital (RBC) level above the government’s year-on-year regulations. As at December 31, 2006, its Risk based Capital (RBC) reached 288 percent, higher than the government requirement of 120 percent. PT. Sun Life Financial Indonesia had IDR 1.9 trillion in assets.
PT. Sun Life Financial Indonesia has 46 sales offices (as of January 10, 2007) in Jakarta, Surabaya, and 30 other cities throughout the country including Medan, Pekanbaru, Belitung, Padang, Jambi, Palembang, Lampung, Rangkasbitung, Bandung, Semarang, Purwokerto, Yogyakarta, Magelang, Solo, Malang, Kediri, Gresik, Jember, Bali, Makasar, Manado, Mataram, Palu, Balikpapan, Palangkaraya and Samarinda with products ranging from education and health insurance to retirement plans, protection and investment.
Sun Life Financial Inc.
Sun Life Financial is a leading international financial services organization providing a diverse range of protection and wealth management products and services to individuals and corporate customers. Chartered in 1865, Sun Life Financial and its partners today have operations in key markets worldwide, including Canada, the United States, the United Kingdom, Ireland, Hong Kong, the Philippines, Japan, Indonesia, India, China and Bermuda. As of September 30, 2007, the Sun Life Financial group of companies had total assets under management of more than CDN$427 billion
Sun Life Financial Inc. trades on the Toronto (TSX), New York (NYSE), and Philippine (PSE) stock exchanges under ticker symbol SLF.
Our Existence in Asia
Sun Life Financial has more than 100 years of experience in Asia. Sun Life Financial established itself in Asia with the opening of its Hong Kong office in 1892. Three years later, in 1895, Sun Life Financial began operating in the Philippines’s insurance market.
Strong Credit Ratings*
Sun Life Financial earns high independent ratings from international rating agencies.
*All financial ratings are assigned to Sun Life Assurance Company of Canada (as per March 13, 2007)
Sun Life Financial Inc. trades on the Toronto (TSX), New York (NYSE), and Philippine (PSE) stock exchanges under ticker symbol SLF.
Our Existence in Asia
Sun Life Financial has more than 100 years of experience in Asia. Sun Life Financial established itself in Asia with the opening of its Hong Kong office in 1892. Three years later, in 1895, Sun Life Financial began operating in the Philippines’s insurance market.
Strong Credit Ratings*
Sun Life Financial earns high independent ratings from international rating agencies.
| Standard & Poor's | : | AA+ (Very Strong) |
| Moody's | : | Aa2 (Excellent) |
| A. M. Best | : | A++ (Superior) |
MESSAGE FROM THE PRESIDENT DIRECTOR
Dear Visitor,
Welcome to the PT Asuransi Allianz Life Indonesia website! We thank you for your visit and your interest in our company.
Think Global, Act Local
Allianz Life Indonesia is a subsidiary of the Allianz Group, a leading global provider of insurance and financial services with a presence in more than 70 countries and employing over 165,000 staff to serve our 70 million customers worldwide. We are proud to say that the Allianz Group worldwide has exceeded all its 2006 targets, with total revenues exceeding 101 billion Euros.
Allianz Life Indonesia
Allianz Life Indonesia was established on August 16th, 1996. We offer a comprehensive range of Life and Health Insurance products and services along with Employee Benefits products and Pension schemes. We assist both individual and corporate customers in finding solutions to their financial concerns. Allianz Life Indonesia today has a strong market presence with sales increasing remarkable.
Long term commitment
Allianz has always taken a long-term view and commitment in regards of its investments in Asia and more specifically to Indonesia. In the past 10 years our customer base and sales as well as service network has increased substantially.
Today, the number of our customers has amounted to over 365,000 individuals and more than 1000 corporate clients. Our distribution network strengthened in terms of network, presence and partners. Our Allianz Agency is today present in 43 cities throughout Indonesia, from Banda Aceh to Jayapura. We have also strategic bancassurance partnerships with some well-known banks in Indonesia, such as Standard Chartered, Permata Bank, and Bank Danamon. Allianz Life Indonesia has also formed partnerships with PT BUSS.
Moving towards market leadership
Today, Allianz Life Indonesia is entering into a new stage of development, we strive towards market leadership in Indonesia. The company has launched its new vision and goal. Our vision is to be the first choice for customers, business partners and employees. We build long-term relationships based on mutual trust. And we have a new striking goal “2010-ONE”, meaning that The Number ONE Insurance Group in Indonesia by 2010.
Customer Focus
It is our main priority to focus on our customers’ needs and providing them with tailored solutions.
In Indonesia we have developed many products, which suit families, companies and individuals, in their different stages of life and development. Amongst them are our unit-linked based “SMART link product”, our individual Health product named “MaxiViolet” and in January 2006 we have also launched our new Sharia products named “AlliSya”
We are currently implementing with our sister company PT Asuransi Allianz Utama Indonesia the “One-Stop Shopping Concept”, meaning to provide customers and business partners with all Allianz insurance products under one strong brand name, Allianz.
By putting into action the best practice in terms of Customer Focus and Operational Excellence, and with the great support and commitment of our business partners, we will continue to provide our best services to always meet our goal to be the people’s and companies’ “First Choice”.
Warmest regards,
Jens Reisch
President Director
Welcome to the PT Asuransi Allianz Life Indonesia website! We thank you for your visit and your interest in our company.
Think Global, Act Local
Allianz Life Indonesia is a subsidiary of the Allianz Group, a leading global provider of insurance and financial services with a presence in more than 70 countries and employing over 165,000 staff to serve our 70 million customers worldwide. We are proud to say that the Allianz Group worldwide has exceeded all its 2006 targets, with total revenues exceeding 101 billion Euros.
Allianz Life Indonesia
Allianz Life Indonesia was established on August 16th, 1996. We offer a comprehensive range of Life and Health Insurance products and services along with Employee Benefits products and Pension schemes. We assist both individual and corporate customers in finding solutions to their financial concerns. Allianz Life Indonesia today has a strong market presence with sales increasing remarkable.
Long term commitment
Allianz has always taken a long-term view and commitment in regards of its investments in Asia and more specifically to Indonesia. In the past 10 years our customer base and sales as well as service network has increased substantially.
Today, the number of our customers has amounted to over 365,000 individuals and more than 1000 corporate clients. Our distribution network strengthened in terms of network, presence and partners. Our Allianz Agency is today present in 43 cities throughout Indonesia, from Banda Aceh to Jayapura. We have also strategic bancassurance partnerships with some well-known banks in Indonesia, such as Standard Chartered, Permata Bank, and Bank Danamon. Allianz Life Indonesia has also formed partnerships with PT BUSS.
Moving towards market leadership
Today, Allianz Life Indonesia is entering into a new stage of development, we strive towards market leadership in Indonesia. The company has launched its new vision and goal. Our vision is to be the first choice for customers, business partners and employees. We build long-term relationships based on mutual trust. And we have a new striking goal “2010-ONE”, meaning that The Number ONE Insurance Group in Indonesia by 2010.
Customer Focus
It is our main priority to focus on our customers’ needs and providing them with tailored solutions.
In Indonesia we have developed many products, which suit families, companies and individuals, in their different stages of life and development. Amongst them are our unit-linked based “SMART link product”, our individual Health product named “MaxiViolet” and in January 2006 we have also launched our new Sharia products named “AlliSya”
We are currently implementing with our sister company PT Asuransi Allianz Utama Indonesia the “One-Stop Shopping Concept”, meaning to provide customers and business partners with all Allianz insurance products under one strong brand name, Allianz.
By putting into action the best practice in terms of Customer Focus and Operational Excellence, and with the great support and commitment of our business partners, we will continue to provide our best services to always meet our goal to be the people’s and companies’ “First Choice”.
Warmest regards,
Jens Reisch
President Director
Asuransi AIA Indonesia, PT
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WHY ALLIANZ LIFE INDONESIA
Our competent Financial Consultants provide suitable life insurance and health insurance products to cater our customers' needs. We are committed to developing the professional skills of our sales force and Allianz will continue to equip all teams with the necessary skills and knowledge to enhance the quality of our customer service.
On the other hand, our Account Executives have the expertise to prepare a thorough analysis on Employee Benefits proposals tailored to meet the different needs of our clients. We provide various products and consultancy services for companies who wish to implement Employee Benefits plan for their employees as well as for their dependants. Programs are designed according to the needs of the company with coverage for life, health and accident insurance as well as funds for retirement provision and annuities.
Our key strength:
A wide range of
customer-tailored
products
Our product range consists of :
Individual Life Insurance, unit linked, syariah insurance
Individual Health Insurance
Bancassurance
Alternative Distribution
Comprehensive Employee Benefits Services: health insurance, pension, savings & protections
With high awareness, financial security, professionalism and state of the art technology, Allianz is your suitable partner to provide you with the protection you need.
On the other hand, our Account Executives have the expertise to prepare a thorough analysis on Employee Benefits proposals tailored to meet the different needs of our clients. We provide various products and consultancy services for companies who wish to implement Employee Benefits plan for their employees as well as for their dependants. Programs are designed according to the needs of the company with coverage for life, health and accident insurance as well as funds for retirement provision and annuities.
Our key strength:
A wide range of
customer-tailored
products
Our product range consists of :
Individual Life Insurance, unit linked, syariah insurance
Individual Health Insurance
Bancassurance
Alternative Distribution
Comprehensive Employee Benefits Services: health insurance, pension, savings & protections
With high awareness, financial security, professionalism and state of the art technology, Allianz is your suitable partner to provide you with the protection you need.
PRODUCT LIFE INSURANCE Allianz Syariah - AlliSya Protection, AlliSya Invest & AlliSya Invest Plus
Allianz Syariah - AlliSya Protection, AlliSya Invest & AlliSya Invest Plus
Allianz Syariah is a life insurance product for life long coverage plus an investment scheme to meet your needs for future protection and financial planning according to the Sharia principles.
Allianz offers 3 types of products:
AlliSya Protection
-With this program you are free to choose from various payment modes which are monthly, quarterly, semi-annual or annual.
-The insurance benefits include the Sum Insured and Investment return
Freedom to decide your own premium payment period.
-You can increase with other insurance protection such as accidental benefit, critical illnesses, permanent disability etc.
AlliSya Invest
-The payment of the premium is single.
-The insurance benefit payable is either the Sum Insured or Investment Return, which one is higher.
AlliSya Invest Plus
-Single premium payment
-The insurance benefits are the Sum Insured and the Investment return
-Addition coverage : critical illness, accident and total permanent disability
-Period of Insurance coverage are 5 and 10 years, and renewable
Management of AlliSya Fund
-All or part of the premium will be allocated and calculated in unit, according to the current unit price applicable
-Investment return is calculated from the total unit after substracting all fees
-Unit price is the difference between offering price and buying price, with a difference of 5%
-Unit price could be changed from time to time depending on the fund manager and market conditions
-Unit price is calculated daily and published in the Bisnis Indonesia Daily
Type of Investment
With Unit-linked products, premiums will be allocated in units which you are free to distribute between our 3 unit-linked Funds:
> AlliSya Rupiah Cash Fund
> AlliSya Rupiah Fixed Income Fund
> AlliSya Rupiah Balanced Fund
Allianz offers four funds as your investment opportunity
AlliSya Rupiah Cash Fund
Designed to get a maximum investment return* with fund placements in Rupiah using high-quality short-term investment tools such as time deposit, SWBI, and mutual funds. This investment offers a high-level security and preserves high liquidity by providing investment return.
* Investment returns depend on company investment performance and investment risks.
AlliSya Rupiah Fixed Income Fund
Designed to get an optimum investment return* with fund placements in Rupiah using short and mid-term investment tools such Deposito, SBI, and mutual funds, as well as long-term investment tools like bonds. This investment offers attractive investment gains with high level security and stability.
* Investment returns depend on company investment performance and investment risks.
AlliSya Rupiah Balanced Fund
Designed to get a maximum investment return* with fund placements in Rupiah using an optimum allocation with money market instruments, bonds, stocks and mutual funds. The allocation of funds is determined by Fund Managers and is subject to change on occasion. This offers good long-term investment returns at high risk.
* Investment returns depend on company investment performance and investment risks.
You can add SmartRiders to your basic insurance plan
Allianz SmartRiders
Allianz understands that you need comprehensive protection. Therefore we have designed for you the Allianz SmartRiders. SmartRiders can be added to your basic unit-linked program and complete your and your partners life protections against accidents, critical illness and also medical expenses.
Critical Illness Plus (CI+)
This rider offers protection against 24 critical illnesses. If you are for the first time diagnosed to have one or more of these 24 critical illnesses Allianz will pay 100 % of your sum assured under CI+. Critical illnesses are for example heart attack, stroke, and cancer.
Accidental Death & Disablement Benefit (ADDB)
Nobody expects accidents to happen. But we all know they do happen.
This rider offers you additional coverage for death and disablement caused by accident. Allianz pays 100% - 300% of the sum assured upon accidental death and a certain percentage if inner organs or body parts are defect because of an accident.
Total Permanent Disability (TPD)
24 hours a day Allianz protects you from TPD and pays you 100% of your sum assured in case of TPD. Of course, your basic policy will still continue until the end of insurance time.
Waiver of Premium Plus (WOP+)
This rider offers an additional protection if the life insured is for the first time diagnosed to suffer from one or more of 24 critical illnesses (CI+) and/or has total permanent disability (TPD). In these cases the premium will be waived (canceled) until end of the payment term. There is no limit as to what amount of premium can been waived.
Payor Benefit & Payor Protection
Payor Benefit
Release from obligation to pay premium if a policyholder suffers from total permanent disability or from one or more of 24 critical illnesses.
Payor Protection
Release from obligation to pay premium if policyholder dies due to an accident.
Spouse Payor Benefit & Spouse Payor Protection
Spouse Payor Benefit
Release from obligation to pay premium if the spouse of a policyholder suffers from total permanent disability or from one or more of 24 critical illnesses.
Spouse Payor Protection
Release from obligation to pay premium if the spouse of policyholder dies due to an accident.
Flexi Care
We do not expect to get sick and sickness normally happens without prior notice. While you are doing your activities Allianz protects you from unexpected cash payments for hospital expenses. If the insured one gets sick or suffers an accident that must be taken care of in a hospital, Allianz pays for room expenses, surgery expenses etc. as you can see in table below during a maximum of 180 days per year.
AlliSya Product has been approved by Syariah Supervision Board as recommended by National Board of Syariah – Majelis Ulama Indonesia.
Sharia Insurance
Islamic finance has developed mainly in two directions, namely Islamic banking and Islamic insurance (Takaful or Sharia). While information about Islamic banking is widely available, little is known about the features, models and structures of Takaful, particularly in Indonesia.
All human beings are invariably exposed to the possibility of meeting catastrophes and disasters giving rise to misfortunes and sufferings such as death, loss of limbs, accident, destruction of business or wealth, etc. Notwithstanding the belief of all Muslims in Qadha-o-Qadr, Islam provides that one must find ways and means to avoid such catastrophes and disasters wherever possible, and to minimize his or his family's financial losses should such events occur. One possible solution is to buy insurance cover under the conventional system.
However, an overwhelming majority of Sharia scholars believe that conventional insurance is unlawful due to the involvement of Riba (interest), Maisir (gambling) and Gharar (uncertainty).Takaful, the Islamic alternative to insurance, is based on the concept of social solidarity, cooperation and mutual indemnification of losses of members. It is a pact amongst a group of people who agree to jointly indemnify any loss or damage that they may suffer, out of the fund they donate collectively. This Takaful contract usually involves the concepts of Mudarabah, Tabarru´ (to donate for benefit of others) and mutual sharing of losses with the overall objective of eliminating the element of uncertainty.
Takaful products are available to meet the needs of all sectors of the economy, both at individual as well as corporate levels, and to cater for the short and long term financial needs of various groups of society.
The distinction between the conventional insurance and Takaful business is most visible when looking at investment of funds. While insurance companies invest their funds in interest-based avenues and without any regard for the concept of Halal-o-Haram, Takaful companies undertake only Sharia compliant business and the profits are distributed in accordance with the pre-agreed ratios in the Takaful Agreement. Likewise they share in any surplus or loss from the pool collectively. Takaful system has a built-in mechanism to counter any over-pricing policies of the insurance companies because whatever may be the premium charged, the surplus would normally go back to the participants in proportion to their contributions.
Sharia insurance (Takaful) is a system in which all participants “donate” partially or full contributions used to pay claims filed by several participants. The role of insurer is limited to managing the fund and all administration process.
Allianz Syariah is a life insurance product for life long coverage plus an investment scheme to meet your needs for future protection and financial planning according to the Sharia principles.
Allianz offers 3 types of products:
AlliSya Protection
-With this program you are free to choose from various payment modes which are monthly, quarterly, semi-annual or annual.
-The insurance benefits include the Sum Insured and Investment return
Freedom to decide your own premium payment period.
-You can increase with other insurance protection such as accidental benefit, critical illnesses, permanent disability etc.
AlliSya Invest
-The payment of the premium is single.
-The insurance benefit payable is either the Sum Insured or Investment Return, which one is higher.
AlliSya Invest Plus
-Single premium payment
-The insurance benefits are the Sum Insured and the Investment return
-Addition coverage : critical illness, accident and total permanent disability
-Period of Insurance coverage are 5 and 10 years, and renewable
Management of AlliSya Fund
-All or part of the premium will be allocated and calculated in unit, according to the current unit price applicable
-Investment return is calculated from the total unit after substracting all fees
-Unit price is the difference between offering price and buying price, with a difference of 5%
-Unit price could be changed from time to time depending on the fund manager and market conditions
-Unit price is calculated daily and published in the Bisnis Indonesia Daily
Type of Investment
With Unit-linked products, premiums will be allocated in units which you are free to distribute between our 3 unit-linked Funds:
> AlliSya Rupiah Cash Fund
> AlliSya Rupiah Fixed Income Fund
> AlliSya Rupiah Balanced Fund
Allianz offers four funds as your investment opportunity
AlliSya Rupiah Cash Fund
Designed to get a maximum investment return* with fund placements in Rupiah using high-quality short-term investment tools such as time deposit, SWBI, and mutual funds. This investment offers a high-level security and preserves high liquidity by providing investment return.
* Investment returns depend on company investment performance and investment risks.
AlliSya Rupiah Fixed Income Fund
Designed to get an optimum investment return* with fund placements in Rupiah using short and mid-term investment tools such Deposito, SBI, and mutual funds, as well as long-term investment tools like bonds. This investment offers attractive investment gains with high level security and stability.
* Investment returns depend on company investment performance and investment risks.
AlliSya Rupiah Balanced Fund
Designed to get a maximum investment return* with fund placements in Rupiah using an optimum allocation with money market instruments, bonds, stocks and mutual funds. The allocation of funds is determined by Fund Managers and is subject to change on occasion. This offers good long-term investment returns at high risk.
* Investment returns depend on company investment performance and investment risks.
You can add SmartRiders to your basic insurance plan
Allianz SmartRiders
Allianz understands that you need comprehensive protection. Therefore we have designed for you the Allianz SmartRiders. SmartRiders can be added to your basic unit-linked program and complete your and your partners life protections against accidents, critical illness and also medical expenses.
Critical Illness Plus (CI+)
This rider offers protection against 24 critical illnesses. If you are for the first time diagnosed to have one or more of these 24 critical illnesses Allianz will pay 100 % of your sum assured under CI+. Critical illnesses are for example heart attack, stroke, and cancer.
Accidental Death & Disablement Benefit (ADDB)
Nobody expects accidents to happen. But we all know they do happen.
This rider offers you additional coverage for death and disablement caused by accident. Allianz pays 100% - 300% of the sum assured upon accidental death and a certain percentage if inner organs or body parts are defect because of an accident.
Total Permanent Disability (TPD)
24 hours a day Allianz protects you from TPD and pays you 100% of your sum assured in case of TPD. Of course, your basic policy will still continue until the end of insurance time.
Waiver of Premium Plus (WOP+)
This rider offers an additional protection if the life insured is for the first time diagnosed to suffer from one or more of 24 critical illnesses (CI+) and/or has total permanent disability (TPD). In these cases the premium will be waived (canceled) until end of the payment term. There is no limit as to what amount of premium can been waived.
Payor Benefit & Payor Protection
Payor Benefit
Release from obligation to pay premium if a policyholder suffers from total permanent disability or from one or more of 24 critical illnesses.
Payor Protection
Release from obligation to pay premium if policyholder dies due to an accident.
Spouse Payor Benefit & Spouse Payor Protection
Spouse Payor Benefit
Release from obligation to pay premium if the spouse of a policyholder suffers from total permanent disability or from one or more of 24 critical illnesses.
Spouse Payor Protection
Release from obligation to pay premium if the spouse of policyholder dies due to an accident.
Flexi Care
We do not expect to get sick and sickness normally happens without prior notice. While you are doing your activities Allianz protects you from unexpected cash payments for hospital expenses. If the insured one gets sick or suffers an accident that must be taken care of in a hospital, Allianz pays for room expenses, surgery expenses etc. as you can see in table below during a maximum of 180 days per year.
AlliSya Product has been approved by Syariah Supervision Board as recommended by National Board of Syariah – Majelis Ulama Indonesia.
Sharia Insurance
Islamic finance has developed mainly in two directions, namely Islamic banking and Islamic insurance (Takaful or Sharia). While information about Islamic banking is widely available, little is known about the features, models and structures of Takaful, particularly in Indonesia.
All human beings are invariably exposed to the possibility of meeting catastrophes and disasters giving rise to misfortunes and sufferings such as death, loss of limbs, accident, destruction of business or wealth, etc. Notwithstanding the belief of all Muslims in Qadha-o-Qadr, Islam provides that one must find ways and means to avoid such catastrophes and disasters wherever possible, and to minimize his or his family's financial losses should such events occur. One possible solution is to buy insurance cover under the conventional system.
However, an overwhelming majority of Sharia scholars believe that conventional insurance is unlawful due to the involvement of Riba (interest), Maisir (gambling) and Gharar (uncertainty).Takaful, the Islamic alternative to insurance, is based on the concept of social solidarity, cooperation and mutual indemnification of losses of members. It is a pact amongst a group of people who agree to jointly indemnify any loss or damage that they may suffer, out of the fund they donate collectively. This Takaful contract usually involves the concepts of Mudarabah, Tabarru´ (to donate for benefit of others) and mutual sharing of losses with the overall objective of eliminating the element of uncertainty.
Takaful products are available to meet the needs of all sectors of the economy, both at individual as well as corporate levels, and to cater for the short and long term financial needs of various groups of society.
The distinction between the conventional insurance and Takaful business is most visible when looking at investment of funds. While insurance companies invest their funds in interest-based avenues and without any regard for the concept of Halal-o-Haram, Takaful companies undertake only Sharia compliant business and the profits are distributed in accordance with the pre-agreed ratios in the Takaful Agreement. Likewise they share in any surplus or loss from the pool collectively. Takaful system has a built-in mechanism to counter any over-pricing policies of the insurance companies because whatever may be the premium charged, the surplus would normally go back to the participants in proportion to their contributions.
Sharia insurance (Takaful) is a system in which all participants “donate” partially or full contributions used to pay claims filed by several participants. The role of insurer is limited to managing the fund and all administration process.
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