The relaxation of rules that has allowed the direct marketing of unit-linked products through online means has boosted life insurance sales.
The director of the Indonesian Life Insurance Association (AAJI) Togar Pasaribu explained that the association was still collecting data from members related to 1H2020 performance. “Even so, if we refer to the data from the Financial Services Authority (OJK), there is an improvement in premiums in June 2020,” he said.
Insurance statistics released by the OJK show that life premiums in June 2020 reached IDR15.4tn ($1bn), the highest monthly sales so far this year, reported Bisnis.
Mr Togar believes that the growth in premium income has been helped by the relaxation of marketing rules for unit-linked insurance products that has allowed for digital sales.
AAJI will evaluate the effectiveness of the digital distribution of unit-linked insurance plans that has been running for nearly four months, he said. The relaxation was introduced by the authorities at the end of May 2020.
The association had lobbied the authorities to relax rules on the sales of insurance products related to unit-linked plans to enable physical distancing between insurance personnel and customers during the COVID-19 pandemic.
Prior to the change in rules, the selling of unit-linked products required face-to-face meetings between prospective buyers and marketers for the former to have product explanations.