Crisis pushes up life insurance demand<\/p>\n
JAKARTA (JP): PT Sewu New York Life (SNYL), a life insurance
\njoint venture has reported robust growth in sales in the last two
\nmonths, reflecting people's increased insecurity about the
\nfuture.<\/p>\n
Company president C. Donald Carden said yesterday the
\nuncertainty resulting from the country's worst-ever economic
\ncrisis had significantly pushed up demand for life insurance
\nbecause people saw it as the best way to invest their money.<\/p>\n
He said that the company booked a net profit of Rp 40 billion
\n(US$3 million) in this year's first semester, a 3,900 percent
\nincrease compared to a measly Rp 1 billion in the corresponding
\nperiod last year.<\/p>\n
\"Regardless of the current unfavorable economic conditions,
\nSewu New York Life has been able to record monthly sales of
\nbetween Rp 2.5 billion and Rp 3 billion during the first half of
\nthis year. But in June alone we sold more than 2,000 policies
\nworth Rp 4 billion.\"<\/p>\n
The company expects its total premium income to reach Rp 135
\nbillion this year, slightly more than the Rp 130 billion recorded
\nin 1997.<\/p>\n
SNYL, established in 1992, is 51 percent owned by New York
\nLife International (NYLI) and 49 percent by PT Gunung Sewu
\nKencana. The company has 37 branches in 17 cities with over 1,800
\nagents nationwide.<\/p>\n
NYLI's visiting president and chief operating officer, Mike
\nNocera, said the Indonesian insurance industry needed a much
\nstronger capital base to provide security and long-term
\nguarantees to its policyholders.<\/p>\n
\"Without sufficient capital back-up, life insurance firms
\ncannot fulfill their obligations to their policyholders which
\ncould have a negative impact on the industry,\" he said.<\/p>\n
He stressed his visit to the capital was mainly to reaffirm
\nthe company's confidence and long-term commitment to the country,
\nadding that he would also meet key officials from insurance
\nregulators. (gis)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/crisis-pushes-up-life-insurance-demand-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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