Insuring Success
    Category: Companies & People By : Gloria Haraito Read : 1080 Date : Friday, October 17, 2014 - 00:56:25

    Ahmad Zamroni / Forbes Indonesia

    Less than two in every 100 indonesians have life insurance. That low rate of coverage means local and international life insurance companies should have a bright future ahead of them. Few companies are more committed to the Indonesian market than AIA Financial, the subsidiary of multinational American International Assurance Group, whose roots in Indonesia go back three decades.

    “We need to talk to as many people as possible so they can understand what they need,” says Gordon Watson, group executive vice president and regional chief executive of AIA Group, Ltd. Last year, AIA Financial recorded new business total weighted premium income (NBTWPI) of Rp 2.7 trillion, up 18% from the NBTWPI in 2012 of Rp 2.3 trillion, coming from the now 1.1 million policyholders in its network. That achievement has bolstered AIA’s position to be the third largest life insurer in Indonesia by market share, at 9.4%, up from number four in 2012.

    The increase in the company’s NBTWPI was also augmented by AIA’s experience in the industry. AIA was formerly a subsidiary of financial services giant AIG before it nearly collapsed in the 2008 global financial crisis. AIG received a huge bailout from the U.S. treasury in 2008 and offloaded AIA to resolve its financial woes.

    In late 2010, the now spun-off AIA Group was listed on the Hong Kong exchange. Currently, AIA serves more than 28 million individual policyholders and 16 million group policyholders in the Asia-Pacific region—making AIA the fifth largest insurance company in the world, though it only serves Asia. AIA Financial, meanwhile, offers various products ranging from life insurance, health insurance, personal accident insurance, sharia-based insurance, unit-linked products, employee benefits, severance and pension funds. These products are distributed through agent networks, bancassurance channels and brokers

    Last year, AIA Financial launched an accident and health rider product called Premier Hospital and Surgical. This rider provides access for customers to enjoy VIP-class care in hospitals in Indonesia, Malaysia and Singapore. As a rider, this product can be added to basic policies to give extensive coverage for hospital and surgical expenses outside of the regular domestic coverage areas.