Astra CMG launches credit cards<\/p>\n
JAKARTA (JP): PT Astra CMG Life and Bank Universal joined
\nforces to launch on Tuesday a product that incorporates life
\ninsurance and credit card facilities.<\/p>\n
Astra CMG president Steve Heald said traditional insurance and
\nbanking companies were slowly being taken over by those offering
\none-stop services.<\/p>\n
\"Companies selling traditional banking and insurance products
\nwill become dinosaurs in the future,\" he said during a media
\nconference held in conjunction with the launch of the Astra CMG
\nVisa card.<\/p>\n
The card gives policyholders an identity card which also
\nfunctions as a Visa credit card at Bank Universal. Cardholders
\nwill also enjoy an auto-debit facility for premium payments.<\/p>\n
\"Policyholders will no longer have to keep remembering premium
\npayment periods because payments would be automatically debited
\nstraight from their accounts,\" Heald said.<\/p>\n
Bank Universal president Stephen Z. Satyahadi said that from
\nevery transaction using the card, a reward point of 1.2 percent
\nwould be given which could be used to pay premiums.<\/p>\n
\"I think this is more beneficial to customers than giving
\nbonuses in the form of gifts,\" he said.<\/p>\n
Heald said the card was expected to attract 15,000 new
\ncustomers this year, who would join the 315,000 existing
\npolicyholders.<\/p>\n
Astra CMG recorded premium income of Rp 49 billion (US$5
\nmillion) in the first six months of 2000, and expects a total
\npremium income of Rp 120 billion this year, compared to Rp 80
\nbillion in 1999, Heald said.<\/p>\n
The company paid out Rp 9.5 billion in claims between January
\nand June of this year, compared to Rp 16 billion paid out in all
\nof 1999.<\/p>\n
Heald expects higher earnings thanks to the 12 new branches
\nscheduled to open between August and September and the stronger
\nsales force.<\/p>\n
\"In 1999 we had about a 1,350 sales force, and now it is
\nalmost 2,000,\" Heald said.<\/p>\n
Astra CMG's target market is the middle to upper classes, he
\nadded. Prior to the economic crisis in 1997, the company aimed
\nits products at the top 40 percent of income earners.<\/p>\n
\"Now our market has been reduced to the top 20 percent,\" Heald
\nsaid, adding he was optimistic there would be a recovery by 2003.<\/p>\n
Astra CMG currently has 33 branches in 18 cities across
\nIndonesia. (10)<\/p>",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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