Indonesia: Unclear rules cloud sales of unit-linked general insurance products
Source: Asia Insurance Review | May 2017
Insurers are still undecided about distributing investment-linked general insurance products because they consider the rules governing such products as unclear, according to Mr Julian Noor, Executive Director of the General Insurance Association of Indonesia (AAUI).
He said that one question faced by general insurers concerns seller certification, because “not just anyone can market the product”.
There are certification questions to be cleared up for the distribution channels. Mr Julian said that general insurance companies might use brokers, direct marketing, agents, and other financial institutions to market unit-linked products.
In addition, insurers have to prepare their manpower and systems to sell investment-linked products. General insurance companies can also work closely with fund managers to manage customer investments.
PT Asuransi Sinar Mas (ASM) is seriously interested in marketing unit-linked general insurance products, its Director, Dumasi MM Naidoo, said. The company has prepared several products to be marketed. But because of the lack of technical rules, ASM’s plans have not been realised. He said that if the products which the company has prepared conform with the technical rules, they can be directly marketed. A