Insurance

Allianz Life eyes low-income segment with new micro insurance product

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New product: Allianz Life Indonesia country manager and CEO Joachim Wessling (right) addresses the audience at the launch of the company’s new micro insurance product in Jakarta on Tuesday, as the life insurer’s head of credit and emerging consumer Yoga Prasetyo looks on. The product, launched in collaboration with telecommunications operator Indosat Ooredoo, is targeting low-income segments and will allow customers to pay their premiums via mobile phone. (JP/Winny Tang)

Hasyim Widhiarto

In an effort to reach out to low-income market segments, private life insurer Asuransi Allianz Life Indonesia launched on Tuesday a micro insurance product that allows customers to pay their premiums using electronic money via mobile phones.

With the newly launched “Sekoci” product, named after the Indonesian word for lifeboat, the firm said it is targeting to attract 5,000 new customers in the next six months.

To help customers manage their product more easily, the company is cooperating with telecommunications operator Indosat Ooredoo to allow product owners to pay premiums using Indosat Ooredoo’s Dompetku money transfer services via mobile phones.

“It is not easy for people to buy insurance without having something tangible. This is when we decided we want to partner with Indosat,” Allianz Life Indonesia country manager and CEO Joachim Wessling said, adding that the company is targeting people with a monthly income of around Rp 2 million (US$153.4).

The company did not disclose the premium rate for the new product, referring to it only as “insignificant”. Yoga Prasetyo, the company’s head of credit and emerging consumers, said his firm would pay Rp 5 million to the beneficiary should the insured died of illness, and Rp 25 million should the insured died in an accident.

Allianz Life claims to have 5 million customers in Indonesia, the world’s fourth-most populous nation with a 250-million-plus population. The revenue contribution from the micro insurance industry, however, currently stands at only 1 percent, Yoga said. (win/hwa)

The Jakarta Post

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