The number total microinsurance policies quadrupled to more than 178,000 policies compared to 2007.
230,000 microinsurance customers
"Since the launch of our microinsurance business two years ago, we have been trusted to insure about 230,000 customers. We believe that our microinsurance approach helps especially low-income households to get access to proper insurance protection," said Jens Reisch, President Director of Allianz Life Indonesia.
Even though premium income of microinsurance business is relatively small, it generates reasonable profit with the right administration and management. Within the year 2008, Allianz has settled 76 claims for its microinsurance customers. As Jens Reisch puts it, "For us, microinsurance has a double bottom line: it has a positive social impact and is financially sustainable for us."
Jens Reisch: "We believe that our microinsurance approach helps especially low-income households"
A household in Jakarta receives its claim payment of IDR 4 million (261 euros) for the death of a family member, microinsured by Allianz Indonesia
Sound distribution to reach low-income households
"Payung Keluarga" (meaning "Family Umbrella") is the name of Allianz Life Indonesia’s microinsurance product. It is a flexible product, which provides options of coverage ranging from the basic credit life protection for the debtor and their spouse to additional payouts to help the family to ease the financial challenges after the death of their breadwinner. The minimum premium starts from only 6,000 Indonesian rupiah (approx. 0.39 euros) per year.
Until today, 21 Micro Finance Institutions (MFI) have been cooperating with Allianz Indonesia in microinsurance, consisting of four cooperatives, eleven social foundations, four rural banks and two commercial banks. The main market-penetration areas so far include Sumatra, Jakarta, West & Central Java, Bali, Sulawesi and Sumba Island (East Indonesia).
For 2009, Allianz Life Indonesia expects at least 200,000 new customers and a premium income of more than three billion Indonesian rupiah (approx. 196,600 euros) from its microinsurance business.
Microinsurance in Asia, Africa and Latin America
Allianz is engaged in microinsurance since 2003. Today, Allianz Group is offering microinsurance besides Indonesia also in India, Egypt, Columbia, Senegal, Cameroon, Ivory Coast, and Madagascar.
Microinsurance supports families who have no access to social protection. It can help them avoid falling into the poverty trap by providing access to financial services and hence economic development. This has made microinsurance a vital tool in helping to reduce poverty.
In India for instance, Allianz teamed up with Care International, an organization with extensive experience in microfinance. The partnership focuses on the provision of insurance for people who live near the coast and work in fishing, agriculture and plantations.
On a global scale, Allianz aims to reach two million microinsurance clients by the end of 2009.
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