View this article online: https://www.insurancejournal.com/news/international/2006/01/25/64549.htm
A report on the Allianz Web site (www.allianz.com) notes that the customers of the Group’s Indonesian affiliate can now “buy life and non-life Sharia insurance in a one-stop shopping experience. In the initial launch period, PT Asuransi Allianz Life is offering Unit Link Life Insurance while PT Asuransi Allianz Utama offers fire and motor vehicle insurance.”
Werner Zedelius, Member of the Board of Management of Allianz, responsible for Growth Markets commented: “In line with our customer focus strategy, Allianz Indonesia is responding to the growing requests for Sharia-based insurance protection from its customers and banking partners. Indonesia is the first country in Asia where Allianz is introducing Sharia products.”
The bulletin notes the predominantly Muslim population in Indonesia and the far-reaching impact on the country’s society. “We aim to meet the individual needs of our customers, who are unique in each market,” stated Jens Reisch, President Director of PT Asuransi Allianz Life Indonesia. “These Sharia products reflect Allianz Indonesia’s desire to be our customers’ first choice for insurance.”
Allianz also explained: “Currently, insurance penetration in Indonesia is below 3 percent, which is relatively low when compared to other Asian markets such as South Korea and Japan. Allianz predicts that the burgeoning Sharia market will help improve insurance penetration in Indonesia and this will be supported by increasing levels of awareness about the benefits and protection that insurance offers to people and the economy.
“The penetration of the new products in Indonesia is expected to follow the success of neighboring country Malaysia, where around 20 percent of life premiums come from Sharia related insurance. By contrast, today in Indonesia Sharia related life premiums account for 1 percent.”
Klaus Voeste, President Director of PT Asuransi Allianz Utama Indonesia indicated: “The Sharia program is a testament to our commitment to understand and respond to the needs of the Indonesian people. It also reflects the growing sophistication in people’s choices for wealth management and future family protection.”
Allianz also explained that “Indonesia is considered an extensive market for Sharia products, as shown by the rapid growth of Sharia banking, which grew by 88.6 percent in 2005. PT Asuransi Allianz Life is targeting 1000 Sharia life policies and 5 billion Indonesia rupiahs in premium income from the Sharia segment in 2006.” The Company expects its Sharia business to increase in the next 5 years to comprise 10 percent of its total new individual life business.
“PT Asuransi Allianz Utama has a target of achieving 2000 Sharia non-life policies and 5 billion Indonesia rupiahs in premium income within the first year from its non-life Sharia business. The Company expects growth of more than 30 percent in this segment over the next two years. The first prime target market for Allianz Utama will be bancassurance business, with Sharia-based consumer banking activities insured on a Sharia basis.”
Voeste indicated: “Our primary target is to serve the needs of our Sharia bank partners with reliable and trustworthy insurance schemes. We will also serve any direct requests from customers and brokers, although this is an area we are still developing.”
In connection with its Sharia initiative in Indonesia, Allianz also announced that it “will be launching its Sharia products in Aceh on January 25, 2006 through a new agency office. Reisch commented: “Aceh is a high potential market for Sharia products. The region is expected to experience positive growth post-Tsunami and the introduction of Sharia will certainly benefit the local people.”