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.