Liga Asuransi – Dear readers, how are you? This last week of October, we will meet again in the 5th edition of selected insurance news for October 2022.
In this second week there has been a lot of latest information in the insurance world. Here we write 5 selected news about insurance for you. If you are interested in this article, please share it with your friends so they know about insurance news updates.
- Digitalization is Expected to be a Driver of Insurance to Remote Areas
Bisnis.com, JAKARTA – Technological sophistication in doing everything to facilitate public access is a real form of digitalization, including being able to penetrate insurance that can reach remote areas in the country.
Chairman of the Indonesian Insurance Council (DAI) Tatang Nurhidayat said that digitalization can be viewed from various aspects, ranging from products, distribution, to claim services.
For the product aspect, for example, said Tatang, currently there is parametric insurance which is a form of digitizing a product. Parametric insurance product is an alternative protection against the occurrence of climate change, which can answer the compensation claim benefits.
Tatang continued, digitalization is also felt from the aspect of distribution which is cheaper, considering that Indonesia is an archipelagic country which causes distribution costs to be very expensive.
“With digitalization, it is hoped that apart from being able to penetrate to remote areas, distribution costs will also be cheaper,” said Tatang at the 2022 Insurance Day press conference in Jakarta, Thursday (20/10/2022).
As a result, Tatang concluded that digitalization would allow insurance products to be marketed more massively and would help make the claim process easier, faster and more precise.
“Digitalization must be comprehensive, starting from business process products, distribution, claim services, and the benefits will be felt by all parties. For the industry can also develop and for the community can also reach out,” he said.
However, Tatang views that digitalization will not take over other distribution channels, instead strengthening other distribution channels such as agency. He said that the agency can also transform into a digital agency. Same with brokers or banks.
According to him, this digitalization will encourage existing distribution channels to survive in addition to the company’s ability to be able to do marketing directly to consumers.
“Everything can run simultaneously so that there should be no cannibalism, but all these channels can move massively for insurance development,” he said.
Director of Insurance Supervision of the Financial Services Authority (OJK) Supriyono said that actually digitalization has added security in policyholder transactions because there is a digital footprint. With the help of digital technology, explained Supriyono, policyholders can ask agents to record when they explain insurance products.
“With a digital system, the insurance industry can reach many places without having to open offices in remote areas, but distribution is already using digital,” he said.
As for now, Supriyono said that many insurance companies have remote offices and have reduced distribution costs. In addition, he said that OJK also continues to encourage the insurance industry to be more innovative, one of which is digital policies that can be distributed more efficiently.
“Digital is more profitable if we can manage and use it,” he said.
- The Importance of Data Updates and Its Benefits for Insurance Customers
KOMPAS.com – Insurance customers need to be aware of the importance of the data updating process in financial service providers, such as insurance. This activity is the process of updating the personal data of a person who has become a customer in a financial service provider company.
Updating personal data is useful to protect the interests of customers and aims to make the company more flexible in communicating to provide insurance information and the condition of the customer’s policy.
Sequis Vice President Life Operations Division Eko Sumurat said that Sequis’ routine data update is carried out every year as a form of company compliance with Financial Services Authority Regulation Number 23/POJK.01/2019.
“The company will contact customers if there is important information related to the policy or required data verification regarding customer claims, if there is important information about the latest products or services for customers,” he said in an official statement, Tuesday (18/10/2022).
Therefore, he added, it is very important for customers to update their personal data regularly. The reason is, when the customer cannot be contacted or the information provided by the company does not arrive, the customer can lose money.
“It could result in the policy benefits not being received, or the policy could be canceled (lapse) so that customers are no longer protected,” he added.
Eko explained that updating data also aims to protect customers from potential data misuse or crime. Currently, there are issues of data leaks and concerns about personal data being spread by people who want to make money, and data misuse for illegal activities. For this reason, the public needs to be careful when providing data to other parties.
Furthermore, Eko said, an example of the importance of updating data is when a customer forgets to pay the insurance premium, the company can remind him to immediately make a payment via email or an active cell phone number.
Likewise, if there are claim documents that need to be completed, the insurance company can immediately contact the customer. Another benefit is that if a customer has an insurance product with a tiered fund benefit, a premium refund benefit when the insurance period ends, or a policy end benefit if there is no claim during the protection period, the insurance company can immediately communicate with the customer.
Meanwhile, data updating includes mobile phone numbers (mobile phones) connected to WhatsApp, active email, domicile according to ID cards and other important data related to the interests of the policy.
- This is how an insurance agent works with a boisterous salary of Rp. 1 billion
Jakarta – Many people who do business in the insurance sector are said to have income or income of up to Rp 1 billion per month. How does it work?
In the video that was crowded on social media, there were three people who were interviewed by their insurance business and income ranging from hundreds of millions to Rp 1.1 billion.
It turned out that all three worked in the same place, namely an agency to sell insurance products.
How do the agents or sellers of these insurance products actually work? How much commission do they get when they successfully sell the product?
Insurance observer Irvan Rahardjo said that there are indeed insurance companies that use the member get member scheme. Almost similar to a multilevel marketing (MLM) scheme that has a downline.
So these agents are recruited from their immediate family and the closest family of their customers. “For example, the prospective customer A and then the people around him become the target of new customers,” he said.
Irvan said that the insurance agents will get a commission after he has successfully acquired a customer.
For your information, this member get member is a promotional program. Usually will involve other people to promote the product to be sold. Usually in this member get member there will be a special bonus given to the person who promotes the most.
For leaders or people who manage to get new members will also get a percentage of the commission. Indeed, the amount is not as big as the commission that is directly obtained from the customer.
Irvan gave an example for unit link products that usually provide a commission of 30%-60% of the premium paid by the customer. “It could be up to Rp 1 billion a month. Because every customer acquisition agent will get a commission,” he said
He said the insurance agent’s commission from the premium was paid for three years to the agent, for unit-linked products. There are even some companies that apply larger commissions to agents.
For traditional insurance products, that is only protection. The commission given is smaller than the unit link product. In the range of 20-30%.
Financial Planner Aidil Akbar revealed that actually achieving billions of income per month is not obtained with a short process.
“It can’t be instant, there is a long process to build a system, building a team takes a long time. Even to tears to get billions of income,” said Aidil.
- The Policy Guarantee Institution Boosts Public Trust in Insurance
Liputan6.com, Jakarta The establishment of the Policy Guarantee Agency (LPP) is believed to bring major changes in the national insurance industry because there is certainty of customer premium protection, and can improve the performance of the national insurance industry.
Chairman of the Association of Indonesian Insurance & Reinsurance Brokers, Kapler Marpaung, said LPP will encourage public interest and trust in using insurance services, as well as create healthier insurance industry governance.
“LPP will be part of the reform of the industry, thus supporting the continuity of the insurance industry in the country. The presence of LPP can increase public confidence in using insurance services,” explained Kapler Marpaung, in Jakarta quoted Monday (17/10/2022).
He explained that with current conditions, the performance of the insurance industry in Indonesia is quite good. Data from the Financial Services Authority (OJK) shows that insurance company premium income from January to August 2022 reached Rp 205.90 trillion.
This figure is up 2.10 percent from the same period last year. Meanwhile, the risk-based capital of life insurance and general insurance are 485.51 percent and 310.08 percent, respectively. This figure is far above the threshold, which is 120 percent.
Kapler believes that with premium guarantees, the potential for improving the performance of the national insurance industry will be even greater. “Right now without guarantees, Indonesian insurance is very developed. However, the potential is still very large if there is a premium guarantee facility, as applied to deposits in banks, “he explained.
He said, LPP as a premium guarantee institution will of course also play a role in monitoring the activities of insurance companies, so that there is a OJK sparring partner in fostering and supervising insurance companies.
“So far, only OJK has taken care of insurance. Whereas in banking, OJK has sparring partners, namely the Deposit Insurance Corporation (LPS) and Bank Indonesia (BI) with their respective functions. So there will definitely be new things from LPP. So it’s not only the benefits, but the feedback,” said Kapler.
On this occasion, Kapler also appreciated the role of the OJK which also encouraged the implementation of the Insurance Law to increase public trust in insurance companies.
This step, he explained, is in line with the urgency of establishing LPP at this time. He emphasized that the insurance industry in Indonesia is getting bigger, so the demands of customers and the challenges they face are also getting bigger.
In addition, LPP has been mandated through Law Number 40 of 2014 concerning Insurance or since eight years ago. Kapler added that the discussion of the Financial Sector Omnibus Law currently taking place at the DPR RI is expected to be a momentum to accelerate the formation of the LPP, including the drafting of the Law on LPP.
“Bank and non-bank financial industry, of course, must be made equally healthy. The stability of the financial system cannot be said to be healthy. If one of the sub-sectors is not good, it means that this insurance should not be neglected,” he explained again.
On the other hand, he views that the case of default by insurance companies in Indonesia has not yet entered the systemic category, such as in the banking sector during the 1997 monetary crisis.
- Recession looming, Life Insurance Surrender Claims Will Soar?
Bisnis.com, JAKARTA – The turbulent global economic conditions leading to a recession and a surge in inflation have the potential to raise the number of claims for redemption value, aka surrender claims, mainly due to an increase in the cash needs of policyholders. Finance Director of PT BNI Life Insurance (BNI Life) Eben Eser Nainggolan explained that his party had calculated the potential for an increase in surrender claims due to economic phenomena.
“BNI Life indeed has an increase in surrender claims in the range of approximately 20 percent as of September 2022 compared to the same period last year. But this is still reasonable, along with the increase in the number of customers and our asset under management [AUM] which also increases,” he told Business, Monday (17/10/2022).
Eben predicts that if there is no significant national economic turmoil phenomenon, there will still be an increase in the number of surrender claims until the end of the year, but it will still be within a reasonable range and there will be no too noticeable spike.
Similarly, the President Director of PT Asuransi BRI Life, Iwan Pasila, also emphasized the potential for increased demand for surrender claims, especially from policyholders for investment-related insurance products (PAYDI or unit-linked).
This is because, apart from the difficult economic conditions, there are also types of policyholders who are worried about the future of their chosen unit-linked investment instrument. Especially considering the capital market projections which tend to fluctuate in the future.
“The potential for an increase in surrender claims will indeed exist, especially for unit-linked policies. We continue to recommend that policyholders only take part, so that the policy remains active while facing current conditions. I’m afraid, when you rush to surrender, a few months later the risk arises, and finally not covered,” he said in a casual chat with the media some time ago.
In addition, BRI Life also anticipates that there will be a segment of policyholders who submit surrender claims due to their declining ability to pay premiums. Therefore, BRI Life is implementing an investment strategy that tends to be conservative, to ensure that every claim can be disbursed quickly, while maintaining the company’s profitability.
Previously, the Indonesian Life Insurance Association (AAJI) described that until the middle of the 2022 period, the total claims and benefits paid by life insurance players worth Rp. 83.93 trillion to 6 million people were fairly stagnant.
However, the portion of surrender claims with a percentage of 51.9 percent of the total claims or equivalent to Rp. 43.58 trillion, recorded a slight increase of 0.5 percent (year-on-year/yoy) compared to the same period last year.
“Although the trend of claims for surrender is currently only slightly rising, we still want to remind policyholders who need urgent funds, actually there is no need to surrender. It is better to take advantage of the partial withdrawal feature, so that the policy remains active,” said Head of Product, Management Risk, and GCG AAJI Fauzi Arfan some time ago.
On the other hand, claims for death account for 7.1 percent of the total or Rp. 5.96 trillion, down 25.2 percent yoy on an annual basis. Partial withdrawal claims with a portion of 10 percent of the total or Rp. 8.38 trillion were recorded to fall 14.2 percent yoy on an annual basis.
In addition to surrender claims, the type of life insurance claims that also experienced an increase came from final contract claims with a portion of 11.5 percent of the total or Rp. 9.68 trillion, up to 56.5 percent yoy on an annual basis.
This information is presented by L&G Insurance Broker – The Smart Insurance Broker
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