Hanwha Life Comes as a New Player
Although insurance penetration in Indonesia is low, it does not mean the industry is lonely. Understandably, many local and international players who work in the insurance market in Indonesia. Call it Prudential, Zurich, AIA, Jiwasraya or any other name.
As a new player, Hanwha Life Indonesia believes that they must bring differentiation to win the competition in the Indonesian insurance industry. In addition to relying on agency schemes, South Korean insurance companies are working with Bank KEB Hana to try bancassurance schemes.
If previously Hanwha Life Indonesia played a lot in business to business segment (B2B), now they try to play in segment (B2C). One of them through a product called HealthyPlus. “Considering the concern of the Indonesian public for health products has increased recently, Hanwha Life Indonesia chose health products to be marketed first.The plan of this product will be sold in November 2015. In the future Hanwha Life Indonesia will also provide other bancassurance products as products education, unit link products, and so on, “said Suharyono Hadisumarno, Chief Operation Officer of PT Hanwha Life Insurance Indonesia
Suharyono claims that the benefits of this HealthyPlus product can use cashless facilities at Hanwha Life Indonesia hospital or clinic partners. “There is also an accommodation cost reimbursement facility for the patient’s family, so insurance only focuses on the patient, while the family or the waiting person is not getting attention,” he said.
Not until here, Hanwha Life Indonesia products also provide health protection until the age of 65 years with the insurance period for 5 years. In addition to double claim facilities, this product also provides compensation sadness if the insured dies. “We will also provide a 50% premium refund if there is or is not a claim at the end of the coverage.Usually insurance companies only provide this facility if there is no claim, this is our differentiation,” he said.
2016 is predicted to be better than 2015. Suryo Bambang Sulistio, Chairman of the Indonesian Chamber of Commerce (KADIN) who will end his term said Indonesia will record economic growth above 5% next year. “This year is just under 5%, but I think next year could be above 5%, or even 5.5%,” said Suryo. Meanwhile, the inflation rate will sit at 6% level.
According to him, there are four factors that could be a negative sentiment for Indonesia’s economic development next year. First, the economic slowdown experienced by China. Second, commodity prices are still low. Third, the rise in interest rates in the United States (US). Fourth, the rupiah against the US dollar continues to weaken. “We expect the exchange rate to be maintained at Rp 13,500 per US dollar, and the amount will be stable because otherwise it will burden the entrepreneurs,” he said.
Next year, Suryo hopes the government can improve its downstream economy, infrastructure and substitution. “The low hanging business should be developed, because it’s a close and easy-to-develop business,” he said. Some of the sectors in question are tourism, fisheries, food, and others. Understandably, Indonesia has all the potential. What is needed is the serious development of some of these sectors.
In addition, Suryo also hoped that the benchmark interest rate could be lowered given the inflation rate this year could be maintained. He took the example of a neighboring Philippines who only has a 4% interest rate. “Compared to neighboring countries, Indonesia’s interest rates are not very competitive, how can businesses compete?” He said.