Allianz Indonesia Sees Threefold Growth for Microinsurance in 2008

Mar 2009
Jakarta, Indonesia, March, 04 2009 - Allianz Life Indonesia said it has recorded a total of 1 billion Indonesian rupiahs (US$82,271) in premium income from its microinsurance business in 2008, representing year-on-year growth of more than 350% from 2007.

The total number of its microinsurance policies quadrupled to more than 178,000 in 2008 from the previous year.

Allianz Life Indonesia's president director, Jens Reisch, said the life insurer's microinsurance business was launched two years ago in Indonesia. He said the company has been trusted to insure around 230,000 customers domestically.

According to Allianz Indonesia, in 2008 it settled 76 claims for microinsurance customers. Reisch said the company's microinsurance has a double bottom line: it has a positive social impact and is financially sustainable for us. "We believe that our microinsurance approach helps especially low-income households to get access to proper insurance protection" said Reisch.

Currently, Allianz Indonesia is cooperating with 21 microfinance institutions (MFI) in microinsurance, including four cooperatives, 11 social foundations, four rural banks and two commercial banks.

The life insurer also said its microinsurance operations have reached six main Indonesian areas, including Sumatra, Jakarta, West and Central Java, Bali, Sulawesi and Sumba Island in East Indonesia.

It expects its microinsurance business to generate premium income of over 3 billion Indonesian rupiahs in 2009, serving at least 200,000 new customers.

Apart from Indonesia, the German insurance group offers microinsurance in India, Egypt, Colombia, Senegal, Cameroon, Ivory Coast and Madagascar.

In India, Allianz  formed partnerships with a microfinance institution Care International, providing insurance for people living near the coast and working in fishing, agriculture and plantations industries.

Allianz said that it aims to reach 2 million microinsurance customers around the world by the end of 2009.

Source : TMC

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